EMPLOYEE BENEFITS How to make the right choices. Outsourcing a 401(k) Plan BY MAUREEN NEVIN DUFFY EXECUTIVE SUMMARY WITH 401(k) BALANCES GROWING, SMALL AND MEDIUM- sized companies are finding themselves burdened with myriad responsibilities of operating a retirement plan for employees. Many companies are choosing to outsource the plan to
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TOPICS / TAX
Employee benefits
Smart Stops on the Web
For the Benefits Specialist www.iscebs.org The International Society of Certified Employee Benefit Specialists conducts annual surveys of its membership on various employee benefits and compiles and publishes the results on this site. Topics range from employer-sponsored prescription drug programs to retirement issues. Pension Plans Discussed Here www.dol.gov/dol/pwba The Department of
Government
Treasury to garnish delinquent borrowers’ SSA benefits ( www.ssa.gov/enews/debtpayment.htm ). Bush plan to invest SSA funds gives SEC commissioner pause ( www.sec.gov/news/speech/spch459.htm ).
Mergers And Acquisitions
FASB decides to end pooling-of-interests accounting method ( www.rutgers.edu/accounting/raw/fasb/news/nr012401.html ).
Technology
Privacy advocates petition legislators for their support on tough standards ( www.epic.org/privacycoalition/coalition_press_release.html ).
Fraud
Money launderers duping banks, says Senate report ( www.senate.gov/~gov_affairs/020501_psi_minority_report.htm ).
Professional Issues
New charter for Public Oversight Board increases its powers, staff and funding (not yet posted on POB Web site). Effective February 9.
Banking
Debt requirements set for banks with financial subsidiaries ( federalreserve.gov/boarddocs/press/boardacts/2001/20010119/default.htm ). OCC releases privacy obligations advisory for banks ( www.occ.treas.gov/ftp/advisory/2001-2.doc ). Survey shows that banks are raising their loan standards ( federalreserve.gov/boarddocs/snloansurvey/200102/fullreport.pdf ).
Employee Benefits
Labor department rule bolsters security of small pension plans ( www.dol.gov/dol/pwba/public/media/press/pr101900.htm ). Effective April 17.
Financial Reporting
FASB issues employee compensation guidance ( www.rutgers.edu/accounting/raw/fasb/eitf/eitfissu.html#00-23 ). FASB issues an exposure draft on accounting for goodwill ( www.rutgers.edu/accounting/raw/fasb/news/nr021301.html ). The comment period ended March 16. Accounting for financial asset transfers, servicing addressed in FASB report ( accounting.rutgers.edu/raw/fasb/project/125summary.html#Q&A ). SEC issues final rule that says mutual funds must disclose after-tax
Auditing
For news from the AICPA and state societies, visit www.cpaweb.org , which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites. SBA earns high marks for internal control framework ( www.sba.gov/news/current01/01-08.txt ).
Legal
SEC adjusts civil penalty amounts for inflation ( www.sec.gov/rules/final/33-7946.htm ). Effective February 2.
Government Accounting And Auditing
GASB user guides explain government financial statements ( www.rutgers.edu/accounting/raw/gasb/pub/userguides.html ).
FYI
IIA sponsors report on audit committee best practices ( www.theiia.org/ecm/bookstore.cfm?doc_id=1257 ). GAO appoints new members to auditing advisory council (Not yet posted on GAO Web site). New members appointed to FASB ( www.rutgers.edu/Accounting/raw/fasb/news/nr_schipper.html ; www.rutgers.edu/Accounting/raw/fasb/news/nr_wulff.html ). Bush names SEC Commissioner Unger as acting chairman ( www.sec.gov/news/press/2001-20.txt ). Labor department sets
International
EU wants all listed companies to use international accounting standards by 2005 ( www.iasc.org.uk/news/cen8_193.htm ). G4+1 shuts down as IASB starts up ( www.rutgers.edu/accounting/raw/fasb/IASC/g4+1jan01.html ). IASC establishes international accounting standard-setting board ( www.iasc.org.uk/news/cen8_511.htm ). U.K.’s audit board seeks feedback on standards convergence handbook ( www.asb.org.uk/publications/publication320.html ). Comments are due by
Investments
SEC acts to improve mutual fund directors’ independence ( www.sec.gov/rules/final/34-43786.htm ). Effective February 15.
Flexible Benefits for Small Employers
EXECUTIVE SUMMARY THE RISING COST OF EMPLOYEE BENEFITS HAS LED some small employers to find creative funding solutions benefits for themselves and their employees. Two popular alternatives are cafeteria plans under IRC section 125 and non-125 flexible benefit plans. IF AN EMPLOYER GIVES AN EMPLOYEE THE CHOICE between tax-free benefits
ERISA Liability for CPAs
EXECUTIVE SUMMARY CPAs WHO PROVIDE PROFESSIONAL SERVICES TO employee benefit plans face potential liability exposure under ERISA. A June U.S. Supreme Court case made it clear that CPAs and other service providers are at risk even though in many instances their actions may seem innocuous. ERISA IMPOSES CERTAIN DUTIES
A Matter of Form (5500)
EXECUTIVE SUMMARY THE DEPARTMENT OF LABOR AND THE IRS HAVE revised Form 5500, Annual Return/Report of Employee Benefit Plan. Plan administrators and employers sponsoring employee benefit plans need to use the streamlined form for 1999 filings. THE REVISIONS, WHICH REPLACE THE FORM 5500 series with a single form, are expected
Reinvigorating Aging ESOPs
EXECUTIVE SUMMARY WITH MANY OF THE ESOPs CREATED OVER the past 20 years suffering the pains of old age, ESOP sponsors must carefully consider some of the possible courses of action available to them, including reloads, refinancings, grantor trusts and even possible plan terminations. ACCOUNTING FOR ESOPs CHANGED WHEN THE
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The key to success with CAS is selecting the best clients. Tools like ideal client profiles (ICPs), buyer personas, and even artificial intelligence can help identify the businesses that best fit each CAS practice.
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