When it comes to qualified retirement plans, the 403(b) has long been the default alternative for nonprofit organizations. The lack of nondiscrimination testing for elective deferrals and no plan audit requirement as well as the ability to avoid Employee Retirement Income Security Act (ERISA) regulations have traditionally been the biggest
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TOPICS / MANAGEMENT ACCOUNTING
HR & talent management
In Search of a Standard
Editor’s note: This is a sidebar to “Executive Compensation: What’s Reasonable?“ A seminal case employing the independent investor test for reasonable compensation is the 1983 decision by the Ninth Circuit Court of Appeals in Elliotts Inc. v. Commissioner (716 F.2d 1241). In it, the Ninth Circuit (Alaska, Arizona, California,
Executive Compensation: What’s Reasonable?
When a corporate client seeks words of wisdom regarding tax planning, most CPAs go through the litany of suggestions related to acceleration of deductions and deferral of income. Yet one of the biggest and potentially most dangerous tax issues facing corporations is the compensation paid to the top executives and
Economic Outlook Improves
Optimism about the U.S. economy’s prospects improved sharply in the second quarter, but compensation freezes, layoffs and capital spending cuts are still on the horizon for about half of companies, according to a new survey of CPA financial executives. Nearly one-fifth of respondents were optimistic or very optimistic about the
Economic Outlook Remains Uncertain
Recessions—roughly two per decade—have occurred quite regularly since World War II. Most last less than four quarters, according to International Monetary Fund data. But the depth and breadth of recessions are notoriously difficult to predict. This article focuses on what CPA financial executives have experienced in the current recession, using
Compliance Tests
A fundamental requirement for every qualified retirement plan is that the benefits or contributions be provided in a manner that does not discriminate in favor of highly compensated employees (HCEs). The IRC requires a qualified plan to demonstrate its compliance with this nondiscrimination requirement by satisfying a particular test. Some
Small Retirement Plans Face Funding Dilemma
Many traditional defined benefit pension plans are underfunded due to market declines. As a result, barring congressional action, they could face future excise taxes ranging from 10% to 100% of the underfunded amounts as mandated by the Pension Protection Act of 2006 (PPA). Funding liabilities are especially difficult for smaller
More CFOs Predict Staff Cuts Than Hirings for Second Quarter
The uncertain economic climate is making CFOs re-evaluate accounting and finance staffing levels. For the first time in more than five years, more CFOs interviewed for the Robert Half International Financial Hiring Index predicted decreases than predicted increases in personnel. Seven percent of CFOs interviewed by Robert Half expected to
Sample Sabbatical Program Policy
Here is a sample sabbatical policy based on actual policies used by firms: 1. Eligibility. All partners with five years of service will be eligible to take a sabbatical every five years. All managing associates with seven years of service will be eligible to take a sabbatical every seven years. Partners
Plan Design in the Balance
An overview of the advantages and disadvantages of a cash balance plan.
Executive Pay Growth Outpaces Revenue
EMPLOYEE BENEFITS In the year from February 2007 to February 2008, total overall executive compensation, including salary, bonuses, stock options, pension and other compensation, in domestic publicly traded companies increased 20.5%, according to a new study, while revenues increased just 2.8%. The study was conducted by ERI Economic Research
Take Your New Team to the Top
EXECUTIVE SUMMARY Vision. Start with a clear vision of a finance team that is involved in the business and engaged in key management decisions. Stakeholders. Identify and engage key stakeholders right away. Conduct structured interviews to identify what is most important to your internal clients. Current Organization. Immediately
Smart Stops on the Web
HUMAN RESOURCES EASY DOES IT www.simplyhired.com Many of us may not consider a job search “a simple yet effective, enjoyable journey,” but that’s exactly what the creators of this vertical employment search engine strive to provide. The site features millions of positions fed from thousands of
Value Proposition
EXECUTIVE SUMMARY The CPA is the gold standard in financial credentials, but CPAs are increasingly in short supply. The result is that it is more difficult and more expensive for companies to find qualified CPAs. CPAs can benefit companies in a number of ways that they
Perfect Storm Prompts Changes in Pension Accounting
EXECUTIVE SUMMARY FASB has issued Statement no. 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans, to reform accounting for pension and other postretirement benefit plans. The new statement requires companies to move off-balance-sheet items onto their financial statements. The schedule of comprehensive income
Internal Control Guidance: Not Just a Small Matter
EXECUTIVE SUMMARY In its most recent guidance for compliance with Sarbanes-Oxley section 404 requirements for smaller entities, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) has provided principles and examples of effective internal control. Titled Internal Control Over Financial Reporting—Guidance for Smaller Public Companies,
Hired Help: Finding the Right Consultant
EXECUTIVE SUMMARY CPAs can help companies hire consultants to deal with a wide variety of employee benefits challenges including managing the rising cost of health insurance, maintaining competitive benefits offerings and dealing with the complexity of pension and other retirement plans. Before hiring a benefits consultant, companies should check
Smart Stops on the Web
HUMAN RESOURCES SITES Staff Smart www.adphire.com CPAs responsible for filling open positions will want to check out Automatic Data Processing Inc.’s (ADP) Web site for its calculator that determines the cost of a bad hire and of high turnover. The site also offers free information on screening candidates and adhering
Interviewing Techniques: Tips from the Pros
EXECUTIVE SUMMARY A skillful interview consists of Preparation. Collect information about the job you’re trying to fill; Know what the duties are and what experience, credentials and core competencies are required to fulfill them. Know the type of clients and industries the candidate will be working with so you
A Strategic Player
EXECUTIVE SUMMARY Many companies are raising the expectations for their chief audit executives (CAEs) to include operating at more strategic levels of risk management and corporate governance. Successful CAEs must partner effectively with the audit committee and other members of the senior management team to achieve their objectives. To be
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FROM THIS MONTH'S ISSUE
Tax season quick guide
Get ready for tax season with the JofA’s annual filing season quick guide, an easy-to-use compilation of dollar thresholds, tax tables, standard amounts, credits, and deductions. Download and print for quick reference this tax season.
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