Will You Be Required To Amend Your Retirement Plan Document This Year?
Apr 02, 2015
Yes, it is very likely you will. Tax laws impacting retirement plans are always changing. When laws change, plans must be amended and/or completely rewritten/restated. Now is that time. The changes to the law related to the Pension Protection Act of 2006 are being formally added to all defined contribution plans (401(k) and profit sharing plans). This means you must amend and restate your 401(k) profit sharing plan some time between May 2014 and April 2016.
“Why now? That Act was passed in 2006”. Well, simply because Congress and the IRS provide a period of time after the enactment of a new law for plan sponsors to amend their plans to reflect the changes.
The most successful retirement plan begins with the appropriate design to meet the needs of the Company and the organization’s employees. This year, being the year of required restatement, is also an excellent time and opportunity to revise the plan itself to best benefit the company’s owners and employee group, at the lowest cost.
Moreover, these changes provide the perfect opportunity to revisit opportunities to adjust and update the various provisions of your retirement plan in order to optimize the benefits to you as business owners and for the employees. Upon notice of the required amendment/restatement from your plan document provider – consider also talking with them about how you could improve the plan design. William Vaughan Company is available to work with you and your provider to help you achieve the greatest benefit from your retirement plan.
By: Michelle Klement
Categories: Healthcare & Dentistry
Dental Fraud Alert
Mar 26, 2015
The Ohio State Dental Board recently learned about a fraudulent act which occurred at a dental office in New Albany, Ohio. The information below was received by the Board and is being passed along to ensure your awareness. If your office has been the victim of the same type of fraud please contact the New Albany detective listed below.
Recently, a New Albany dental office’s business account was hacked and insurance money from Delta Dental and Cigna to be paid to the dentist was directly deposited into a private bank account/prepaid card. Basically, the perpetrator accessed the dental office’s secure account information and was able to alter it which led to the funneling of insurance payments received into a personal bank account. The perpetrator is thought to be located somewhere in the San Diego, California area and was able to commit the deception through the Internet.
It appears the transactions began around November sometime and totaled around $12,000. The detective is checking with other jurisdictions in Ohio to find out if they have had this same type of fraud occur in their localities.
Kevin Deckop, Detective New Albany Police Department 50 Village Hall Rd. New Albany, OH 43054 614‐855‐1234 kdeckop@newalbanypolice
Categories: Healthcare & Dentistry
Top 5 Myths About Outsourced Accounting
Mar 19, 2015
Outsourced accounting is changing the way organizations do business. Not only can it provide clarity to how costs are incurred, where revenues are earned and highlight areas for growth, it can also make organization’s stronger. However, some are reluctant to explore the option of cloud-based outsourced accounting based simply on common misconceptions. Here are the top 5 myths and the truth about outsourced accounting and its benefits.
Myth #1: Losing control of your organization Outsourced accounting actually enhances the control you have over your procedures and accounting data. Your financial processes will be standardized and established guidelines will be followed rigorously. You will have real-time data at your disposal providing you greater control of your cash flow and other performance indicators. Time and time again, our clients t feel they are no longer alone and have gained their own personal team of experienced accountants. Outsourcing has offered our clients the ability to work collaboratively and more efficiently to establish greater control over their financial well-being.
Myth #2: Outsourcing eliminates jobs Many organizations have limited resources and as a result they rely heavily on their employees to perform multiple functions. Often times, employees are acting in roles in which they do not have any formal training. Wearing too many hats can lead to inefficiencies. Not only does this hinder growth within the organization, but it also adds stress to the employee. Outsourcing your accounting function allows your staff to be refocused on efforts that are more suitable for their skill set. Furthermore, the organization can now direct its resources towards their mission, funding and grant writing.
Myth#3: It’s Not Secure Besides transforming how businesses function internally and externally, the growth of cloud computing also has a consequence on outsourcing data management. By partnering with WVC RubixCloud your security can and will be improved. Security is a top priority and we have partnered with the leading software company to ensure data is protected. Furthermore, as a result of the shared access of real-time data, transactions are visible from any source with an internet connection. If a transaction has been completed and you are not sure of its nature, you can instantaneously take action.
Myth #4: Outsourcers Don’t Understand My Business When you partner with a WVC RubixCloud, you will gain a well-rounded team of financial experts who have worked in a variety of industries both in public and private sectors.
Myth #5: Outsourcing is only viable for large organizations No matter the size of your organization, outsourced accounting options are flexible. One of the main advantages of outsourcing is the streamlining of processes to attain business efficiencies and actionable insights. Smaller organizations can benefit tremendously from the economies of scale offered through outsourcing. Frequently, the cost is considerably lower compared to having the work completed in-house.
In conclusion, don’t fall victim to the most common myths of cloud outsourced accounting. Take the time to research the facts. Check out WVC RubixCloud at www.wvcrubixcloud.com and learn how we can be the game changer for your organization!
Categories: Healthcare & Dentistry
Health Savings Accounts
Mar 12, 2015
The rising cost of health care has contributed to the growing popularity of health savings accounts (HSAs). An HSA is a tax-favored account that can be used to pay out-of-pocket medical expenses.
To be eligible for an HSA, an individual must be covered under a high deductible health plan, either personally or through an employer. The plan must have certain provisions, including a specified minimum annual deductible and a dollar cap on the expenses required to be paid out of pocket for covered benefits. Additional health coverage is generally prohibited, although there are certain exceptions.
From a federal income-tax standpoint, an HSA offers several benefits.
- Within limits, HSA contributions are tax deductible (or pre-tax under an employer’s cafeteria plan).
- Earnings on HSA investments accumulate tax-deferred.
- HSA withdrawals used to pay qualified medical expenses are tax-free.
Withdrawals not used for qualified expenses are taxable, and a 20% penalty also may apply. Any unspent HSA funds can simply accumulate in the account for future use.
HSA Contribution Limits
High Deductible Health Plan Coverage 2015
Self-only $3,350
Family $6,650
Individuals age 55 or older as of the last day of the year who aren’t enrolled in Medicare may make additional “catch-up” contributions of up to $1,000 annually.
Categories: Healthcare & Dentistry
ODOT Identity Confirmation Quiz
Mar 05, 2015
With income tax fraud and identity theft on the rise, the Ohio Department of Taxation (ODT) has implemented a new initiative to increase security measures. Ohio’s Identity Confirmation Quiz is just one of the tools the ODT is using to prevent fraudsters from receiving a refund as a result of identity theft.
Taxpayers who have filed their tax returns are selected at random to receive an identity confirmation letter instructing them to complete the quiz within 60 days. The quiz can be taken online at the Ohio Department of Taxation’s website. If selected to take the quiz, you will need the reference number from your Identity Confirmation letter, your social security number (SSN) and the amount of refund claimed on your tax return.
The quiz consists of multiple-choice questions very specific to the individual taxpayer. According to the ODT, the information used to populate the personal quiz comes from many public and commercial data sources and consists of current and historical information about the identified individual. In addition, the quiz is timed, allowing only a few minutes to be completed.
Once the quiz is complete, the taxpayer will know immediately whether or not they passed or failed.
- If a taxpayer passed, processing of the tax return continues.
- If a taxpayer fails, they may have the opportunity to take a second quiz. If passed the second time, processing of the tax return continues.
- If a taxpayer fails twice, they must mail documentation to the ODT proving their identity. Please click here for further instructions.
Please note the selection for this Identity Confirmation Quiz is a random process and should not concern a taxpayer if they receive it. This is unrelated to the size of the refund or with the taxpayer being audited. For additional information or answers to frequently asked questions, please visit the ODT’s Identity Confirmation Quiz page.
By: Jenny Furey, CPA
Categories: Healthcare & Dentistry