How to Account for Loss when Disaster Strikes: Part 2

How to Account for Loss when Disaster Strikes: Part 2

In today’s post we will be discussing how your company’s payroll should be handled if you should find yourself in the midst of disaster. To refresh your memory on our discussion last week on accounting for loss and property damage, click here to visit last week’s blog post: http://bit.ly/2g7DZxQ. Calculating Payroll If your business closes or brings in additional employees during a disaster, carefully review federal law, your local laws and your employment agreements to determine whether you’re legally obligated to pay your employees. Who Must Be Paid Under the Fair Labor Standards Act (FLSA), you may be required to pay exempt, salaried employees during a temporary closing. In that circumstance, you may require your employees to use their paid leave time but may not refuse to pay them if they have no available leave time. Under federal law, nonexempt employees are generally only paid according to the time they worked and are therefore not legally entitled to pay during a closing. However, your local laws or your employment agreement may require you to pay employees who were originally scheduled to work during your closing. If you require employees to remain on-site during a disaster, you must pay them for all time during which they are not permitted to leave. This includes overtime pay if it otherwise applies. Late Payments If a disaster delays processing paychecks, you should make issuing them one of your first priorities. Willfully failing to pay your employees in a timely manner is a violation of the FLSA and may also violate state laws. While you might be excused from penalties during a power outage or...
How to Account for Loss when Disaster Strikes: Part 1

How to Account for Loss when Disaster Strikes: Part 1

With the most recent natural disasters happening around the world, worrying about how you can prepare and protect your business may be weighing heavily on your mind. You can find out what accounting steps to take in the event a disaster with information shared from CPAPracticeAdvisor.com. When a flood, fire, hurricane or other disaster strikes your business, you may suffer heavy property damage along with lost sales during the time you’re forced to close. Having a good understanding of the accounting rules related to natural disasters can help you fully account for your losses, reduce the economic harm to your business, and obtain financial relief through insurance, tax deductions and other sources. Accounting for Inventory Losses Conduct a manual count of your inventory as soon it is practical to do so. Even if items are obviously a total loss, it’s a good practice to document the specific losses due to the disaster versus what you might have lost due to shrinkage or some other means before the disaster. This may also help with the insurance claims process. You will need to update your balance sheet to reflect the current value of your remaining inventory. You can generally include inventory losses as an expense when you prepare your financial statements and file your tax return. However, you will need to adjust for any insurance reimbursements — you cannot both claim a loss expense and exclude the insurance claim from your income. Accounting for Property Damage Damage to other assets, such as buildings or machinery, is handled in a similar manner to inventory. If the damage is so substantial that it...
New Poster – New E-Verify Poster Published

New Poster – New E-Verify Poster Published

Do you use the E-Verity program in your workplace? If you do, then you need to update the mandatory poster in your workplace. Recently, the federal E-Verify Participation poster has been changed by the U.S. Citizenship and Immigration Services agency (USCIS). The following information has been shared by ePlace Solutions, Inc. Who must post the E-Verify Participation poster? The following employers are required to post the E-Verify Participation poster: All federal contractors All employers in states that require the use of the federal E-Verify program All employers that voluntarily participate in the federal E-Verify program. Where should it be posted? In a conspicuous location in the workplace. What changed? There were several changes made to the E-Verify Participation poster: The poster layout was redesigned The language was revised to make information more clear and understandable. The English and Spanish versions are combined on one post How do I get the poster? The USCIS has only a sample poster available on its website. Employers can only download the official E-Verify Participation poster by logging into the E-Verify program. Recommendations? All affected employers should update the E-Verify Participation poster immediately. As sample poster is available here. This article was written by Laurian Rutterbush on the ePlace Solutions, Inc....
IRS Offers Help to Hurricane Victims

IRS Offers Help to Hurricane Victims

The Internal Revenue Service has recently released information on tax relief that is available to victims of Hurricanes Harvey, Irma, and Maria. In general, the IRS is now providing relief to individuals and businesses anywhere in Florida, Georgia, Puerto Rico and the Virgin Islands, as well as parts of Texas. Because this relief postpones various tax deadlines, individuals and businesses will have until Jan. 31, 2018 to file any returns and pay any taxes due. Those eligible for the extra time include: Individual filers whose tax-filing extension runs out on Oct. 16, 2017. Because tax payments related to these 2016 returns were originally due on April 18, 2017, those payments are not eligible for this relief. Business filers, such as calendar-year partnerships, whose extensions ran out on Sept. 15, 2017. Quarterly estimated tax payments due on Sept. 15, 2017 and Jan. 16, 2018. Quarterly payroll and excise tax returns due on Oct. 31, 2017. Calendar-year tax-exempt organizations whose 2016 extensions run out on Nov. 15, 2017. A variety of other returns, payments and tax-related actions also qualify for additional time. See the disaster relief page on IRS.gov for details on these and offer relief the IRS has offered since these hurricanes began hitting in August. The IRS also continues to closely monitor the aftermath of these storms, and additional updates for taxpayers and tax professionals will be posted to be IRS.gov. Besides extra time to file and pay, the IRS offers other special assistance to disaster-area taxpayers. This includes the following: Special relief helps employer-sponsored leave-based donation programs aid hurricane victims. Under these programs, employees may forgo their vacation,...
Hurricane Charity Scams on the Rise

Hurricane Charity Scams on the Rise

With many victims of the most recent natural disasters still dealing with the devastating effects on their homes and businesses, good hearted people are looking to donate and help in any way possible. The IRS has recently issued information to help protect taxpayers from criminals who want to take advantage of charitable people. If you’re currently searching for a way to donate, unfortunately, there are things you should be aware in order to avoid fake charity scams. While there has been an enormous wave of support across the country for the victims of the hurricanes people should be aware of criminals who look to take advantage of this generosity by impersonating charities to get money or private information from well-meaning taxpayers. Such fraudulent schemes may involve contact by telephone, social media, e-mail or in-person solicitations. Criminals often send emails that steer recipients to bogus websites that appear to be affiliated with legitimate charitable causes. These sites frequently mimic the sites of, or use names similar to, legitimate charities, or claim to be affiliated with legitimate charities in order to persuade people to send money or provide personal financial information that can be used to steal identities or financial resources. IRS.gov has the tools people need to quickly and easily check the status of charitable organizations. The IRS cautions people wishing to make disaster-related charitable donations to avoid scam artists by following these tips: Be sure to donate to recognized charities. Be wary of charities with names that are similar to familiar or nationally known organizations. Some phony charities use names or websites that sound or look like those of...

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