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Showing 17 posts from 2015.

Motivating Your Employees

Owners have a great reason to work hard to grow their business—they’ll make more money. Do your employees have the same motivation? If not, you should consider improving your business’s compensation strategy.

Typical compensation strategies often motivate employees to do just enough to keep their jobs. An example is the strategy of combining a competitive base salary with a discretionary annual bonus program. Although the resulting competitive pay should help to attract and retain employees, it will often fail to align your employees’ goals with the goals of the business. Read More ›

Categories: Employee Benefits, Tax

IRS Announces Seven Steps to Make Identity Protection Part of Your Routine

Identity theft can be frustrating and time-consuming. It is always important to be on guard, especially online.

The IRS put together seven steps that you can make part of your routine to protect your tax and financial information: Read More ›

Categories: News & Events

IRS Releases Tax Tips for Deducting Gifts to Charity

The holiday season is well underway and if you plan on donating money or property to a charity this year, you are going to want to know these six tips before you give. The IRS recommends that you should keep these in mind:

  1. Give to qualified charities. 
  2. Keep a record of all cash gifts.
  3. Household goods must be in good condition.
  4. Get an acknowledgement form from a charity for each deductible donation of $250 or more.
  5. Deduct contributions in the year you make them.
  6. Special rules apply if you give a car, boat or airplane to charity.

Learn more about these IRS tips here.

Categories: Tax, Tax-Exempt Organizations

SEC Adopts CEO Pay Ratio Rule for Public Companies

ceo pay ratio ruleThe U.S. Securities and Exchange Commission "SEC", in a 3-2 vote, recently adopted final rules implementing “CEO pay ratio” disclosure requirements (the “Rules”). The Rules were proposed in 2013 and mandated by Congress pursuant to Section 953(b) of the Dodd-Frank Act, and require public companies to disclose how their principal executive officer’s pay compares to that of all company employees. Companies will be required to begin complying with the Rules during a company’s first full fiscal year beginning on or after January 1, 2017  (the 2018 proxy season for calendar fiscal year companies). The full text of the Rules is available here.

Before adopting the Rules, the SEC solicited comments on the proposed pay rules. Despite considerable negative feedback, the SEC - voting along party lines - adopted Rules that are consistent with its initial proposal, leaving largely intact many of the most debated and controversial issues.

The Rules require public companies to disclose: Read More ›

Categories: Compliance, News & Events

Michigan Other Deductions Manual – A Helpful Resource for Sales and Use Tax Exemptions

The Michigan Department of Treasury has published its Other Deductions Manual (the “Manual”). The Manual provides a listing and analysis of the common sales and use tax exemptions. 

If you are a business subject to Michigan sales or use tax, then the Manual is a helpful resource to have on file.

The Manual can be downloaded by clicking this link.  

Categories: Sales Tax, Use Tax

Online Retailers Beware: Michigan “Click-Through” and Affiliate Nexus

Are you an out-of-state business making Internet sales into Michigan? If so, take notice.

The Michigan Main Street Fairness Act (the “Act”) is now effective. Designed to level the playing field between “brick and mortar” retailers and out-of-state Internet sellers, the Act creates two new tests whereby out-of-state sellers are presumed to have Michigan nexus. 

A quick reminder – if an out-of-state seller has Michigan nexus, then it is required to collect and remit 6 percent Michigan sales tax on all sales to Michigan residents.

Test #1 is the affiliate nexus test. Under the affiliate nexus test, an out-of-state retailer will be presumed to have Michigan nexus (i.e., required to collect and remit 6 percent Michigan sales tax on all Michigan sales) if the seller or an affiliate of the seller:  Read More ›

Categories: Compliance, Sales Tax

Notice of New Sales and Use Tax Requirements for Out-Of-State Sellers

Under a new law effective October 1, 2015, an out-of-state seller may be required to remit sales or use tax on sales into Michigan if the seller has nexus under amendments to the Michigan General Sales Tax Act (MCL 205.52b) and Michigan Use Tax Act (MCL 205.95a). The new law creates a presumption that a seller is engaged in the business of making sales at retail in Michigan if the seller, or another person on the seller’s behalf, engages in certain activities in Michigan.  In addition, a seller will be presumed to be making sales in Michigan if the seller enters into an agreement with one or more Michigan residents under which the resident, for a commission or other consideration, refers potential purchasers to the seller, such as by a link on a website). This is sometimes referred to as “click-through” nexus. If you are a seller that sells into Michigan on or after October 1, 2015, and you are not already registered with the Department of Treasury and remitting sales or use tax, you may need to register for Michigan sales and use tax. For information regarding Michigan’s tax registration and remittance requirements, please contact a member of Foster Swift's State and Local Tax group.

Categories: Sales Tax, Use Tax

What do I do if I receive a Notice of Deficiency from the IRS?

What should you do when the Internal Revenue Service (IRS) notifies you that you owe additional taxes? The most important thing to know is that you, as the taxpayer, have options on how to handle the situation, as long as you remain in compliance with the procedures set forth by the IRS. For that reason, it is important to contact a tax attorney who can provide options and represent you in front of the IRS. Read More ›

Categories: Compliance, Tax Disputes

Beware of New Tax Scams: IRS Releases Warning to Taxpayers

Scam artists are continuously thinking of new ways to target hundreds of thousands of people, often using scare tactics. The IRS has recently released a warning to taxpayers to watch out for scam artists. The Treasury Inspector General for Tax Administration is aware of nearly 4,000 people who have reported over $20 million in losses because of tax scams. Click here to learn more about the IRS's warning and understand what the IRS will never do or demand from a taxpayer.

Categories: News & Events

Michigan Supreme Court Clarifies Use Tax Exemption Apportionment Rules

On July 22, the Michigan Supreme Court decided Detroit Edison Company v. Department of Treasury, holding that the Michigan Use Tax apportionment rules apply in situations where property is simultaneously used for exempt and non-exempt purposes. The claim was initiated by Detroit Edison Company ("DTE") in response to a use tax audit by the Department of Treasury. The audit determined that DTE wrongly claimed an exemption from use tax for property used outside of its plant (transformers, fuses, circuit breakers, etc.), resulting in a deficiency assessment of over $13 million plus interest.  Read More ›

Categories: News & Events, Use Tax