The De Minimis Safe Harbor election for repairs and capitalization policies increased from $500 to $2500 per item for businesses without audited financial statements.
This is a federal annual election that will require a review of client’s record of purchases and business activity each year to determine the amount to elect up to $2500 under federal law. Note that Maryland requires all asset purchases to be included on their personal property return regardless of federal safe harbor election.
Maximum annual Section 179 depreciation deduction has been permanently increased to $500,000
Heating and air conditioning systems now qualify beginning 1/1/16
15 -year life on qualified retail/restaurant/leasehold improvements made permanent (special rules apply)
50% bonus depreciation extended thru 12/31/17 available on new asset purchases
Effective 12/1/16
In May 2016, the Department of Labor (DOL) updated the FLSA (Fair Labor Standards Act) overtime rules and issued final rules that will raise the minimum salary requirement for the administrative, professional (including the salaried computer professional) and executive exemptions from $455 per week to $913 per week. If your exempt employees’ salaries fall below this threshold, you will generally have to either:
Raise their salaries to the new requirement, or Reclassify the affected employees on non-exempt and pay them overtime whenever they work more than 40 hours in a workweek.
Job descriptions are critical for employee classification as exempt or non-exempt.
See DOL website for more details, https://www.dol.gov/featured/overtime
***A recent update postpones the effective date indefinitely but employers need to be aware of these new overtime rules and minimum salary requirements for exempt employees
Subcontractor Issues
Audits are on the rise from both Internal Revenue Service and Department of Labor, looking for misclassified subcontractors.
In addition to the additional payroll taxes, employers who are close to the 50 full-time or full-time equivalent employees may be subject to offer affordable health insurance or face a potentially fatal penalty!
We urge you to carefully consider all non-employee relationships in light of the IRS and now DOL audits
Form I-9
Complete and verify documents before hire and maintain for all employees
h2>Re-verify any expired documents (if only good for 3 months, follow up!)
Keep I-9 separate from the employee personnel file
See our website for the updated form (version expires 8/31/2019)
Reminders
- Record Inventory balance as of 12/31/16
- Record ending mileage per vehicle as of 12/31/16
- If you are not currently on a QuickBooks version of 2014 or later, please upgrade your quickbooks version to 2016 or 2017 because our office can no longer support versions earlier than 2014
- *See 11/28/16 email from Cindy for important year-end payroll adjustments, 1099 information and business year-end checklist
- Don’t forget if you hired any new employees in 2016 or from here forward, make sure to include the HHS form regarding the existence of health insurance exchanges in your new employee packets.
- Our office will be closed on Friday December 23 and Monday December 26, 2016 to observe Christmas and closed Monday January 2, 2017 for New Years.
All of us here at 360 Financial Group wish you and your families a very Happy Holiday Season!
About 360 Financial Group
360 Financial Group, founded in 1990, provides a holistic approach to comprehensive wealth management as well as tax and accounting and investment management services. At 360 Financial Group, our MISSION is to be our clients’ primary advisor. We believe our knowledge, experience, and intuitive approach to tax and financial planning gives our clients the confidence they need to help them realize their dreams.
Registered Representative, Securities Offered Through Cambridge Investment Research. Inc., a Registered Broker-Dealer, Member FINRA, SIPC and Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. 360 Financial Group and Cambridge are not affiliated.
About Cambridge
Cambridge Investment Group, Inc. is a privately-controlled firm with a national reach across the financial services industry consisting of multiple broker-dealers and RIAs, including Cambridge Investment Research Advisors, Inc. – a large corporate RIA; and Continuity Partners Group, LLC – a special purpose broker-dealer and registered investment advisor; and Cambridge Investment Research, Inc. – an independent broker-dealer, member FINRA/SIPC, that is among the largest privately-controlled independent broker-dealers in the country supporting approximately 3,000 independent financial professionals nationwide who serve their clients as registered representatives and investment advisor representatives, choosing to use either Cambridge’s firm Registered Investment Adviser or their own. For more information visit www.joincambridge.com.
IMPORTANT DISCLOSURES
Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2016.
