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In This Issue
News & Resources
SEVERAL STATES TO SEE INCREASING UNEMPLOYMENT TAXES
    

Federal unemployment taxes could be on the rise for employers in several states. The 5.4% regular credit against FUTA tax is reduced for firms in states that don't repay loans from the federal jobless fund by November 10. Employers in Indiana and South Carolina face a 1.8% cut in their FUTA credit, which means up to $126 in extra tax per employee. Firms in Kentucky, Ohio, California, Connecticut, New York, and North Carolina are in line for a 1.5% credit reduction, or up to $105 more in tax per employee.

 

For more information contact Aaron Wilzbacher, CPA at 800.880.7800 ext. 1322 or awilzbacher@hsccpa.com.
2015 MCGLADREY MANUFACTURING & DISTRIBUTION MONITOR REPORT

With over 1600 participants from 15 different countries, McGladrey's 2015 Manufacturing & Distribution Monitor Report presents the perspectives and expectations of manufacturing and distribution executives based around the world. Of the companies represented, 65% are based in the United States. This year, the Monitor is a series of reports on topics of concern for manufacturers and distributors, including: the executive summary, global growth, investing for growth and innovation, and information technology and data security.

Findings of the survey include:
  • 35% of manufacturers are thriving
  • 41% of thriving companies have a strong innovation culture
  • 93% of U.S. Companies are confident they can protect their domestic market
  • 60% of non-U.S. manufacturers anticipate growth in international revenue
To read more in-depth results of the 2015 Monitor Survey, check out the following reports:
2015 Manufacturing & Distribution Monitor Report Executive Summary
2015 Manufacturing & Distribution Monitor Report Global Growth
2015 Manufacturing & Distribution Monitor Report - Investing for Growth and Innovation
2015 Manufacturing & Distribution Monitor Report - Information Technology and Data Security

If you would like to discuss the reports further or have questions, please contact Brant Kennedy, CPA at 800.880.7800 ext. 1425 or bkennedy@hsccpa.com.
INDIANA'S SIGNIFICANT TAX LAW CHANGES 

Indiana recently enacted several pieces of legislation that will have major effects on the state's tax laws. Signed by Governor Mike Pence in early May, these bills affect areas such as the tax amnesty program, income tax, sales tax, and property tax.

Tax Amnesty 2015
  • Eligible for taxpayers having an unpaid tax liability for a tax period ending before January 1, 2013. 
  • Taxpayers will be granted a waiver of all penalties, interest, collection fees and other costs.
  • The DOR will be sending out letters to taxpayers that have unpaid liabilities.
  • The amnesty program will run from September 15, 2015 through November 16, 2015.
Income Tax
  • The throwback rule for income tax apportionment has been repealed. This change could significantly benefit those taxpayers shipping goods out of Indiana, although resident owners of passthrough entities will not be affected.
  • The definition of business income has been broadened to include all income apportionable to the state under the Constitution of the United States. In essence, this change makes it more difficult to treat gains from a sale of a business as non-business income and to allocate those gains to one state. 
  • Sales of computer software by business taxpayers will now be treated as the sales of tangible personal property.
Sales and Use Tax
  • The current agricultural and manufacturing exemptions have been expanded to include certain material handling equipment used to transport materials directly used in the exempt processes of each activity. 
  • The exemption for medical equipment, supplies, and devices has been expanded to include durable medical equipment, mobility enhancing equipment, and prosthetic devices, as well as any applicable repair and replacement parts. 
  • The definitions of research and development activities that qualify for sales tax exemption has been expanded and clarified.
 Property Taxes
  • Taxpayers with less than $20,000 of total business property in a particular county are exempt from filing a personal property tax return. However, an annual certification exemption must be filed before May 15 of each year.
For more information contact Aaron Wilzbacher, CPA at 800.880.7800 ext. 1322 or awilzbacher@hsccpa.com.

FASB DELAYS NEW REVENUE STANDARD 

The FASB has agreed to a one-year delay of the effective date for the new revenue reporting standard. Based on feedback from stakeholders and in light of forthcoming amendments to the new revenue standard, the FASB agreed to push back the implementation dates to allow adequate time for effective implementation. While the IASB is considering a similar one-year deferral of the new revenue standard, it has not released a final decision.
 
Key Provisions
 
Public Entities: The new revenue standard is now effective for fiscal years and interim periods within those fiscal years that begin after December 15, 2017. For those who use a calendar year-end, the new revenue standard applies in their 2018 interim and financial statements.

Note: "Public entities" includes public business entities, not-for-profit entities that have issued, or are a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market, and employee benefit plans that file or furnish financial statements with or to the SEC.
 
Non-public Entities: The new revenue standard is now effective for fiscal years that begin after December 15, 2018 and interim periods within fiscal years that begin after December 15, 2019. For those who use a calendar year-end, the new revenue standard applies to their 2019 annual financial statements and to their 2020 interim financial statements.
 
Early Adoption: Early adoption of the new standard is permitted except for entities reporting under U.S. GAAP who must wait to adopt the standard. These entities may not apply the new revenue standard earlier than the original effective date for public entities or no sooner than 2017 for entities using a calendar year-end.
 
The delay is welcome relief for many as the implementation of the new revenue standard requires substantial change for their organizations' systems and procedures. The question now will be whether to become an early adopter (meet the original effective date) or to delay the implementation of the new standard.
 
For questions or assistance in evaluating the appropriate implementation strategy, contact Greg Elpers, CPA, CCA at 800.880.7800 ext. 1352 or gelpers@hsccpa.com.

WHERE OPPORTUNITY KNOX VIDEO PREMIERES AT ARMY TRANSITION ASSISTANCE CONFERENCE
  

The Where Opportunity Knox program is part of the Army's Transition Assistance Program at Fort Knox. It serves soldiers across the globe in transition to a civilian career after their service. The facility manages more than 700 counselors assisting more than 140,000 soldiers per year. At the Army Transition Assistance Conference held in April, the Where Opportunity Knox program had 150 Army Transition counselors providing tools and information to connect their clients to the Louisville area, establishing the region as the place for transitioning military talent.

 

As part of the conference, a new recruitment video was premiered. Find the video here: www.whereopportunityknox.com/greaterlouisville.

 

For more information on the Where Opportunity Knox program visit their website www.whereopportunityknox.com or contact John Rittichier, CPA at 800.880.7800 ext. 8484 or jrittichier@hsccpa.com.
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