February/ March 2014  |
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Manufacturing and Wholesale Distributors
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Is today's business environment presenting unique opportunities and issues for your manufacturing operation? How are you addressing the push from your customers for continuous quality improvement? Are you having difficulty finding and retaining quality employees? Add to these issues declining profit margins and strained resources due to rapid growth and you have major challenges facing you day in and day out.
At Harding, Shymanski & Company, P.S.C. we have a dedicated team ready to assist you with those unique challenges and issues facing your industry.
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Indiana Manufacturers Skills Academy |
The Indiana Manufacturers Association and Ivy Tech Corporate College have announced the creation of the Indiana Manufacturers Skills Academy. The Academy aims to improve training effectiveness and reduce the amount of time invested in training through eAssessments and eLearning.
Assessments and training focus on critical areas for manufacturers, including:
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Automation | Electrical | Fluid Power | | Green Energy | Industry Fundamentals | Lean Manufacturing | | Structural Engineering | Manufacturing Processes | Measurement and Gauging | | Materials | Mechanical | Machining | | Process Control |
Workplace Effectiveness |
Prints and Drawings | |
Thermal | Quality |
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Program advantages include targeted training for each employee, reduced training time, and reduced downtime and rework. The material is self-paced making it easier for each individual. Click here for additional information from the Indiana Manufacturers Association website.
Please contact John Rittichier, CPA at 800.880.7800 ext. 8484 or jrittichier@hsccpa.com for more information. |
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2014 Minimum Wage Changes |
Nineteen states rang in 2014 with new minimum wage and posting requirements for employers. Nearly all announced changes to increase minimum wages, and over half of them have updated their posting requirements. A complete listing of states (including the District of Columbia) with new wage and hour requirements can be found here.
Employers should be certain that these changes are implemented and take proactive steps to ensure compliance with ever changing wage and hour laws and regulations. Taking a fresh look at the Fair Labor Standards Act exemptions, re-training supervisors and other management employees about off-the-clock work and evaluating compliance with meal and rest break obligations is a great way to start the new year to avoid liabilities and collective/ class actions down the road.
For additional information, please contact Aaron Wilzbacher, CPA, at 800.880.7800 ext. 1322 or awilzbacher@hsccpa.com.
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Employers: Affordable Care Act Immediately Changes Pre-tax Handling of Individual Health Insurance Premiums |
IMPORTANT: This change applies to employers who pay individual health insurance policy premiums for employees or allow employees to pay those premiums pre-tax via payroll deduction. Employers who sponsor group health insurance policies are NOT affected by this rule.
Effective for plan years beginning on or after January 1, 2014, an employer can no longer reimburse or directly pay individual health insurance policy premiums on a pre-tax basis. Additionally, employees can no longer pay for their individual insurance premiums pre-tax via a cafeteria plan. This is not a change in tax law. A subtle rule in the Patient Protection and Affordable Care Act (PPACA) is driving the change.
To summarize the change:
- If employers pay these types of premiums directly or reimburse employees for individual insurance policy premiums, employers will need to include that payment in the employees' compensation as fully taxable wages.
- If employees have the cost of their individual policy premium withheld from their paychecks, that premium will need to be a post-tax deduction - not a pre-tax deduction.
- If so far in 2014 any individual health insurance policy premium has been withheld pre-tax, modifications should be made in the payroll system to tax those amounts as soon as possible.
- EXCEPTIONS: There are some very limited exceptions to this general rule such as if only one employee is involved or if the outside insurance is a group plan (e.g. medicare).
Nothing in this rule affects group health insurance.
Please contact Matthew Folz, CPA, Michael Vogel, CPA, or Michele Graham, CPA at 800.880.7800 if you would like to discuss this in more detail or if you need any assistance in determining next steps, if this change impacts your current practices.
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BEAM Kentucky Export Promotion Program Grant for Qualifying Exporters |
The BEAM Kentucky Export Promotion Program offers grant awards of up to $4,500 to qualifying small companies to help them increase their export capacity and activity.
Does your small company need business development assistance to prepare for exporting activity? Is your company already exporting, but needs support to explore new market opportunities?
Future Exporters - Grant funds help qualified future exporters purchase business development services to prepare them for the international marketplace.
Current Exporters - Grant funds help current exporters to identify and execute new international sales opportunities. Awards can be used for market research, business to business matchmaking services, strategic planning assistance, financial and cash flow analysis and planning, improvement of web presence, education, translations, trade shows and more.
BEAM Partner Providers - BEAM partner provider organizations are members of the Kentucky Export Initiative and represent the state's leading business and export development organizations.
Thinking of applying? Click here to learn if your company is eligible.
APPLY NOW
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| Base Plate Registration Moves to Motor Carrier Services |
To streamline the base plate renewal process, Indiana Department of Revenue's Motor Carrier Services Division will take over responsibility for base plate renewal from the Bureau of Motor Vehicles for companies with 25 or more commercial vehicles weighing 26,001 lbs. or more.
This transition, effective January 2014, is occurring in response to recent legislation requiring the Indiana Department of Revenue's Motor Carrier Services Division to assume responsibility of the process from the Indiana Bureau of Motor Vehicles.
With the change, only online renewals are being accepted, allowing businesses to control the registration process from anywhere 24 hours a day. Additionally, users are able to select a renewal month, which is the month they will renew each year.
Current Indiana base plates will expire February 28, 2014. Motor Carrier Services is working to inform carrier companies of this change.
For additional information, please contact Aaron Wilzbacher, CPA, at 800.880.7800 ext. 1322 or awilzbacher@hsccpa.com.
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Simplification for Goodwill and Interest Rate Swaps Coming Soon |
The Financial Accounting Standards Board (FASB) will soon be finalizing Accounting Standards Updates (ASU) related to the simplified hedge accounting approach for certain interest rate swaps and also subsequent accounting for goodwill for private companies. These ASUs will be effective for fiscal year beginning December 15, 2014 and any interim periods thereafter. There will also be an option for early adoption. If the ASUs are finalized prior to issuance of its year-end financial statements, a company could potentially apply the updates to its 2013 financial statements.
With the hedge accounting approach, private companies will assume no ineffectiveness for qualifying swaps. Entities will be allowed to elect this approach on a swap-by-swap basis for existing swaps and those entered into following adoption of the new principles. If the simplified hedge approach is adopted, private companies may elect to use settlement value rather than fair value of the swap. The goodwill alternative will allow for amortization up to ten years, as well as alternatives to the current rules on impairment testing.
Since each company has its own unique circumstances, private companies should consider how these changes will benefit their business. For more detailed information related to who is eligible for these changes as well as more specific information on the accounting changes, click here.
For additional information, please contact Scott Olinger, CPA, CPIM, at 800.880.7800 ext. 8466 or solinger@hsccpa.com.
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Disclaimer
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The information contained in this email is for general guidance on matters of interest only. The publication does not, and is not intended to provide legal, tax or accounting advice.
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Harding, Shymanski & Company, P.S.C. provides accounting, tax, and consulting services to our clients from offices in Evansville, Indiana, and Louisville, Kentucky.
Call us today! 800.880.7800
www.hsccpa.com
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