Lack of Cooperation by the Employer – Reason 3

Posting by Larry Beebe, CPA

Tries to Schedule the Audit at an Inconvenient Time and/or Location

On Page 19 of our Payroll Auditing book we state that “the goal of the auditor’s representative is to schedule the audit at a date and time that is convenient to the payroll auditor”.  The easiest way to do this is to select a date and time and communicate it to the employer in the initial correspondence between the payroll auditor and the employer.

The employer […]

February 19, 2010 Payroll Audit Read more...

Snow Bound Musings: The Tax Implications of Telecommuting

Like most people in the Mid-Atlantic states, I spent most of last week stuck at home as a virtual prisoner of the snow storms that pounded our area beginning on February 5.   During this period, the “busy season” for accountants and tax preparers, these lost work days could have been disastrous.  Fortunately, by using computer technology, most of the professionals in my firm were able to remain productive and work remotely from home.

With the proliferation of computer technology and […]

February 17, 2010 Tax Read more...

PLANNING FOR ESTATE TAXES

Glenn Bailey, CPA

The New Year commencing January 1, 2010 brought the repeal of Federal estate and generation skipping transfer taxes, while retaining transfers on gifts with the highest gift tax rate of 35%.  This dawn of the post estate tax era, which was created through legislation enacted in 2001, led some to conclude the best planning for certain taxpayers was to pass on during the one year window of 2010 and escape estate taxation.  Absent corrective legislation, estate and […]

February 12, 2010 Accounting, Tax Read more...

Lack of Cooperation by the Employer – Reason 2

Posting by Larry Beebe, CPA

Refused to Allow the Audit in the Time Period Selected by the Auditor

It is reasonable to ask the employer why the audit cannot be scheduled when it is convenient for the auditor.  If the reason does not appear to have substance, then the plan’s collection attorney can be asked to intervene to gain acceptance of the date planned by the auditor.

If the reason given by the employer appears valid, then ask the employer for alternative […]

February 12, 2010 Benefit Plan Accounting, Payroll Audit Read more...

Are Employees in California Getting a Break From Having to Take a Break?

Posting by Ron Chandler, CPA

A recent law has taken effect in the Hotel/Restaurant industry in California.  This law is called the “meal break” penalty law, which comes about when an employee works more than 10 hours per day, and is then entitled to two meal breaks.  If the employee misses at least one of these meal breaks, he or she is entitled to one hour of pay.  Another recent law requires four hours of pay if an employee does […]

February 12, 2010 Payroll Audit Read more...

Where is Fraud Likely? – Part 3: Kiting

Lawrence R. Beebe, CPA, Principal

In this series, we are discussing specific areas where fraud might be likely to occur within an organization and the steps management can take to detect and prevent fraud.

Kiting Isn’t Child’s Play

Kiting is a very old scheme and is not as likely to happen as it once was, but any entity with multiple bank accounts should be aware of the possibility.  For kiting to work, an individual must have complete authority over two or more […]

February 5, 2010 Accounting, Audit, Forensic Accounting Read more...

The Traveling Contractors Clause

Posting by Ira Mitzner

One of the heavily litigated issues in the construction industry is the “traveling contractor’s clause.”  If an Ohio contractor has signed a collective bargaining agreement containing such a clause, and does work in a foreign jurisdiction (New York), that employer, when working in New York, must pay New York rates into New York funds.  It is very important for the auditor to understand the correct manner of reporting such employment.  There also are clauses that provide […]

February 3, 2010 Payroll Audit Read more...

THE RETURN OF THE REQUIRED MINIMUM DISTRIBUTION

Brian Wynne, CPA

Because of the economic downturn in late 2008, the federal government allowed taxpayers to skip required minimum distributions from their IRAs and qualified retirement plans for 2009 only.  The purpose of the suspension was to avoid forcing taxpayers to sell stock while at its weakest if the taxpayer didn’t need the money.  As we move into the New Year, don’t forget that these required distributions are now back in place.

Required Minimum Distributions (RMDs) are payments that must […]

February 3, 2010 Accounting, Tax Read more...

Online Banking Security and Fraud Prevention

Posting by Lawrence R. Beebe, CPA

Our friends at EagleBank, a local community business bank with offices in Maryland, Virginia and Washington, DC, are reminding their customers of the importance of keeping up-to-date with internet and e-mail best practices in order to decrease the chance of fraudulent activity.  They have provided the following list of recommendations for those who utilize ACH and wire transfers:

1. Provide the bank with a dollar limit for all individual ACH and wire transfer transactions.

2. Provide the bank […]

February 2, 2010 Accounting, Forensic Accounting Read more...

YOUR TAX PREPARER IS A FRIEND

Individual tax return preparation is in many ways like putting together a jig saw puzzle without  seeing the picture on the box. Unless the preparer has intimate knowledge of the taxpayer’s situation, he/she must rely solely on the information provided and ask questions when items appear to be missing. A picture of the tax situation, given this information and answers to those questions will soon emerge. Will  it be the correct picture? That will depend on completeness of the […]

January 28, 2010 Accounting, Tax Read more...