MANUFACTURING & WHOLESALE DISTRIBUTION INDUSTRY NEWS
| 
|
|
| |
MARCH/ APRIL 2015
|
|
|
|
TSMA Second Quarter Event: State of Manufacturing
Date: Thursday, May 14
Time: 8 a.m. - 9 a.m. CT
Location: Evansville Country Club, 3810 Stringtown Road, Evansville, IN.
Click here for more information.
|
Stay Connected
|
|
|
|
|
TSMA HOSTS INCOMING IMA PRESIDENT AT SECOND QUARTER EVENT
The Tri-State Manufacturers' Alliance will host the Indiana Manufacturers Association's (IMA) incoming president Brian Burton at their Second Quarter Event, May 14th from 8:00 a.m. to 9:00 a.m. CT at the Evansville Country Club. Burton will share information on manufacturing trends and state initiatives. In addition, Andrew Berger, IMA vice president of governmental affairs and tax policy, will join Burton to offer a "behind the scenes look" at the most recent Indiana legislative session.
This is Burton's first opportunity as incoming president to meet with area manufacturers.
"I'm looking forward to this opportunity to speak with TSMA members and guests," Burton said. "The current legislative session will have ended, so it will be a great time for us to review the State's manufacturing initiatives, as well as look at the headwinds manufacturers may face in the year ahead."
To register online click here, or you may contact Dorothy Pergola, Director of Member Engagement and Workforce Development, SW Indiana Chamber, at 812.425.8147 or dpergola@swinchamber.com.
|
SOME DEDUCTIONS DISALLOWED FOR S CORPORATIONS OWNED BY ESOPS
The Internal Revenue Service (IRS) recently released guidance relating to the rules surrounding S corporations owned by employee stock ownership plans (ESOPs). In this guidance, the IRS noted that S corporations are not allowed to deduct any expenses accrued for any ESOP participant. Such accrued expenses would include retirement plan contributions based on accrued compensation, as well as accrued bonus or accrued vacation pay.
The basis for this treatment lies in code Section 267 of the Internal Revenue Code; a section devoted to related party transactions. Under the rules of Section 267, taxpayers may only deduct an accrued expense to related parties in the same year that the payment is reported as income by that party. Due to the nature of ESOPs, ESOP participants qualify as related parties to the S corporation since they own some portion of its stock. Since participants do not include accrued compensation in their income until they receive it, the company cannot deduct these amounts until they are paid.
|
|
|
|
|
NEW MORTALITY DATA MAY AFFECT RETIREMENT BENEFIT OBLIGATIONS
The Society of Actuaries (SOA) issued updated versions of its mortality tables and mortality improvement scale in November of 2014. The new tables reflect the increasing life expectancies in the United States. Employee benefit plan sponsors will need to document how they consider the newly available mortality information and apply it to their plan to arrive at their best estimates when measuring defined benefit retirement obligations.
For companies that adopt the new tables, the effect on the defined benefit retirement obligation could be material. If the new tables are not adopted by the company, sponsors should maintain documentation to show why the selected assumption is the better estimate. Either way, plan sponsors should familiarize themselves with the new tables and begin their evaluations of their best estimates.
For more information, please contact Brant Kennedy, CPA at 800.880.7800 ext. 1425 or bkennedy@hsccpa.com.
|
VETERANS: A NATURAL FIT TO CLOSE THE SKILLS GAP
National, regional, and corporate initiatives are helping connect veterans in need of careers, with U.S. employers in need of skilled workers. The Get Skills to Work program is designed to bring manufacturers and educators together to train veterans for "high-tech" careers. The programs are designed to develop skills that manufacturers desire.The coalition is seeking additional partners to meet its goal of reaching 100,000 veterans by the end of the year. The U.S. Chamber of Commerce's Hiring Our Heroes is another program that holds job fairs for veterans. More than 1,700 businesses have pledged to hire 585,000 veterans and spouses in the U.S.
Locally, over the next three years 480,000 veterans will go through an Army Transition Assistance program in Fort Knox, Kentucky. The Where Opportunity Knox program hopes to connect 10,000 of these veterans with jobs in the Louisville area over the next three years. The program currently has 94 participating employers, including 25 manufacturers. Where Opportunity Knox hosts quarterly briefings and tours at Fort Knox for regional employers to better understand the program. Attendees will have the chance to hear from leaders of the Army Transition Program, tour the base, and meet soldiers for an opportunity to make connections and potentially add veterans to their pool of candidates for future hiring opportunities.
Eric Eversole, Executive Director of Hiring Our Heroes, offered some advice for manufacturers hoping to employ veterans. He notes that, "It's really key for manufacturers to think about how to sell their industry as a long-term, viable opportunity."
For more information, click here for the full article or contact John Rittichier, CPA at 800.880.7800 ext. 8484 or jrittichier@hsccpa.com.
|
NAM/ INDUSTRY WEEK Q1 SURVEY: OUTLOOK POSITIVE FOR U.S. MANUFACTURING
Respondents to the latest National Association of Manufacturers (NAM)/ Industry Week survey are mostly upbeat despite challenges. With 88.5% responding that they were somewhat or very optimistic about their own company's outlook, the number is down 2.7% from those who said the same thing in the previous quarter, suggesting an overall positive outlook.
The report indicates that average 12-month growth rates are expected to be down slightly overall as well with projections of sales increases at 4.3%, investment increases of 2.3% and employment increases at 1.9%.
Top areas of concern for manufacturers are:
- Rising health insurance costs (69.4% of respondents)
- Business climate (69.1% of respondents listed it as their top problem)
- Estate tax provisions (68.3% of respondents said their family-owned businesses would be adversely impacted)
- Slower growth in international markets with a stronger U.S. dollar (36.3% of respondents)
Read the full article at: NAM 2015 1QSurvey: Outlook Positive for U.S. Manufacturing, by Chad Moutray, Chief Economist, National Association of Manufacturers, Industry Week, March 8, 2015.
|
ABOUT OUR MANUFACTURING & WHOLESALE DISTRIBUTION INDUSTRY
In 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.
|
Harding, Shymanski & Company, P.S.C.
800.880.7800
|
SEE WHAT OUR CLIENTS ARE SAYING... 
When I started working in the family-owned business 40 years ago, Flanders had only seven employees. It was shortly after this time that we hired Harding, Shymanski & Company, P.S.C. Today, we have approximately 650 employees and operate in 5 countries.
Our relationship with HSC has been a key asset in achieving this growth. They have provided innovative ideas in tax strategies, operations, and succession and estate planning. They guided us through our first ISO certification and share the same values as stated in our Vision and Mission statements. HSC serves with a 'client first' attitude. David Patterson, President, Flanders
|
|
|
|
|
Copyright © 2015. All Rights Reserved.
|
|
|
|
