Archive for Legislation
The HIRE Act…what’s in it for you?
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If you are unemployed, raise your hand. All fifteen million of you. Now sigh a giant sigh of relief. The U.S. Congress and President Obama have passed a new law to encourage employers to hire you. The tentative pace towards stability just turned into a bit of a skip as the law was signed into effect on March 18th, 2010. Why all the excitement? The new jobs creation bill, Hiring Incentives to Restore Employment Act (HIRE) entices employers to hire people immediately in order to benefit from three valuable tax breaks:
- Employers Get a Payroll Tax Holiday for New Hires — Plus a Potential Tax Credit Bonus.
- The Super Deduction for Purchasing Business Equipment Has Been Extended.
- Tax Credit Bonds Are Made More Attractive
What does this mean for those who qualify? The law exempts employers from paying the 6.2 percent Social Security payroll tax through December 2010 on the wages paid to each new employee they hire in 2010 who has been unemployed for at least 60 days. The maximum value is $6,621 per eligible new employee. The potential tax credit bonus gives employers an additional $1,000 income tax credit for each of these new employees who stay on the job for 52 weeks.
Section 179 of the Internal Revenue Code involving deductions for qualified business assets is being enhanced and is being referred to as a “super deduction”. Section 179 of the Internal Revenue Code allows an employer to “expense,” or deduct, qualified business assets that were put into service during the year, up to a specified maximum. The modification is being dubbed as “super” because rather than equipment depreciating in value over the course of several years, a business may be able to simply write off the entire cost in one year if you qualify and make this election. Certainly sounds super to us!
Tax credit bonds are also getting a bit of a makeover with this new law. The program known as “Build America Bonds” is being reinforced to gain momentum and participation. The HIRE Act allows issuers of qualified tax credit bonds to receive direct payment from the federal government in an amount equal to the allowable tax credit. Additionally, the tax credit bonds include new qualified academy bonds, energy conservation bonds, qualified school construction bonds, and renewable energy bonds.
As the seasons change, the landscaping is not the only thing becoming brighter. The HIRE Act is the first of hopefully many legislative measures the government will be implementing in order to accelerate the rate at which our country is recovering economically. In the spirit of opportunism, we are remaining as hopeful as ever concerning the advantages of this new legislation. To learn more about what your business may qualify for under these new tax laws please contact us and we will be happy to address any questions or concerns you may have.
Why you need to pay attention to Austin, TX, this week
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As most of us begin to thaw out, there are literally thousands of people converging from all over the world on the eclectic city of Austin, TX. Their goal is to bask in the present, but mostly the future, of the film, music and interactive technology industries. From March 12 – 21, attendees will be treated to panel discussions and small group gatherings headed up by some of the premier talents in their fields.
So why, you may ask, should this appeal to the financial professional in you? Because on Saturday, March 13, at 5 PM one such panel will be tackling the issue of innovation in the finance. The session, titled Data is Money: How Geeks are Changing Finance is bringing together “experts in finance and technology to talk about how the future of finance will be influenced by data geeks and technologists.”
On a broad scope, the discussion will delve into new financial data formats, like XBRL, and how they can be combined with other recent advances to help create a better financial system.
Specifically, the panel will attempt to answer such questions as:
- What are the main issues in finance today both for individuals and for the macro economy?
- What are some of the standards that are emerging for financial data?
- What is XBRL?
- What are the implications of XBRL?
- What were some of the causes of the financial meltdown and how could they be prevented with better technology?
- What are some of the ways people are using new financial data formats to improve the financial system?
Panelists will be Aaron Patzer, VP and General Manager of Intuit’s Personal Finance Group, managing the Mint and Quicken Desktop brands; Shawn Carpenter, developer of YCharts; and Jesper Andersen, co-founder of Freerisk and Product Manager for Data and Econometrics at Trulia.com.
With these innovative and visionary thinkers at the helm, this discussion is sure to provide a positive impact on all in attendance. Which gets us to the final point. Even if you’re not in attendance, you can follow along if you have a Twitter account. Using Twitter’s search function, type #dataismoney and you’ll get all the highlights from the discussions that attendees tag with that phrase.
For that matter, if you’re interested in film, music or interactive technology, you can check out the full schedule of events and discussions here. When you find a title you like, click on it for a brief description, then click for event details and you’ll get the hashtag for that event, too. It’s a great way to keep up with some of the valuable insights that are sure to come out of this year’s SXSW Conference. Additionally, many speakers will post links to their slides and speaking notes after the fact. It’s almost as good as being there. Almost.
The IRS is certain: You’re going to need to disclose “Uncertain Positions.”
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While it’s not going to be a factor yet, the writing is on the wall: many businesses will face big changes to their reporting requirements when the IRS mandates that “uncertain tax positions” be identified. Essentially, these are strategies applied to tax returns that the IRS may not agree with. Before now, the IRS was at a disadvantage during audits regarding the matter. These changes will reverse that position and put the IRS ahead of the game.
Prior to this change from the IRS, most businesses that will be affected by this move were already reporting uncertain tax positions for accounting purposes. The difference now will be the additional disclosure to the IRS.
Reporting Basics include:
- Disclosures must be included with returns at the time they’re filed.
- Any business with $10 million or more in assets will be required to comply and must have a financial statement prepared under FIN 48
- Disclosures must include a brief description of the positions and possible tax exposure if they are not upheld.
If you have any thoughts or comments regarding this proposal, the IRS is accepting them until March 29, 2010. If you have any questions as to how this could affect your business, please feel free to contact us at any time and we’ll be happy to work with you.
One big way to avoid next big financial crisis…
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In the most sweeping set of changes to the banking regulatory system since the Great Depression, House lawmakers approved a giant legislative bill that would increase the regulation of US financial institutions and other corporations. The measure puts limits on the power of the Federal Reserve, endorses more oversight, and creates a Consumer Financial Protection Agency.
The legislative package passed in a vote of 223-202 and imposes stronger capital cushions for the largest banks and Wall Street firms. It forces these giants to pay into an emergency fund to the tune of $150 billion that can be tapped when a troubled company needs help.
“We are sending a clear message to Wall Street, the party is over. Never again will reckless behavior on the part of the few threaten the fiscal stability of our people,” said House Speaker Nancy Pelosi during a press conference after the bill passed. “The legislation will finally protect Main Street from the worst of Wall Street.”
On the other side of Capitol Hill, the senate is not expected to act until 2010 making the final passage months away.