To our valued clients:
We are pleased to announce our acquisition of Walborn Naugle Associates. It is scheduled to take place officially on January 1, 2017. Our combined firm will operate as Boles Metzger Brosius & Walborn PC.
Our firm began its professional practice in 1978. Its growth over that time has been predominantly internal, stemming from the referrals of our client base and those of other professionals. The growth and development of our professional staff has evolved in a similar manner. We have attracted high-quality, committed professionals and invested in their training, development and growth. As a result of those efforts, we have experienced tremendous growth over the past several years. This has been in no small way also directly related to the success our clients have had in their business and personal pursuits.
We decided to seek to grow our practice through an affiliation because we believe that a larger organization will allow us to provide a wider array of services and more depth. Walborn Naugle Associates shares the same values we do. We conducted an extensive search within our region looking for an opportunity like this. Walborn Naugle Associates exceeded our hopes for a firm we can combine with and continue the tradition we have for excellent service, deep expertise, and an environment our clients and associates want to be a part of. However, there are several things we want to point out that will not change:
You will continue to work with the same people in our firm you have in the past. All of our people are being retained in their current roles.
Our fee structure will not change.
The services we have provided you in the past will continue.
Walborn Naugle Associates will be moving their offices to our existing offices around January 1st. Our existing phone number will continue to be the one you will use to contact us.
If you have any questions about this exciting news and what it will mean for you, please contact any of us at any time. We look forward to introducing you to some of our new professional associates.
We are grateful to you not only for giving us the opportunity to provide you with accounting services but for your loyalty and friendship, which have enriched our relationship. We are confident that our new affiliation will serve us all well.
The Partners and Associates of:
Boles Metzger Brosius & Emrick PC
If you start a pension plan, you can take a credit of up to $500 a year for each of the first three years of the plan. The credit is for 50% of certain start up costs you incur in each of those years. Those costs include the expenses you incur in establishing and administering the plan, as well as the cost of any retirement planning education programs you sponsor for your employees. Thus, if you spend $1,200 this year in establishing a plan, and $1,100 in the next two years on administration and employee education, you would be eligible for a $500 credit against your taxes in each of those three years.
You must meet several requirements to qualify for this credit:
If you had a pension plan in the last couple of years, you may want to consider waiting three years from the time the plan was terminated before starting a new plan so that you qualify for the credit. As an example, if you had a plan that was terminated in 2012, you would have to wait until 2016 to start a new plan and qualify for the credit.
There are several types of plans you can establish for your employees and still qualify for the credit. For example, you could start a pension, profit sharing, or an annuity plan, among other choices.
If you have a child (or a grandchild) who is going to attend college in the future, you have probably heard about qualified tuition programs, also known as 529 plans (for the Internal Revenue Code section that provides for them), which allow prepayment of higher education costs on a tax-favored basis.
There are two types of programs: prepaid plans, which allow you to buy tuition credits or certificates at present tuition rates, even though the beneficiary (child) won't be starting college for some time; and savings plans, which depend on the investment performance of the fund(s) you place your contributions in.
You don't get a federal income tax deduction for the contribution, but the earnings on the account aren't taxed while the funds are in the program. A deduction is allowed for Pennsylvania taxes. You can change the beneficiary or roll over the funds in the program to another plan for the same or a different beneficiary without income tax consequences.
Distributions from the program are tax-free up to the amount of the student's qualified higher education expenses. These includes tuition, fees, books, supplies, and required equipment. This would include purchasing a computer and related technology and services such as internet access. Reasonable room and board is also a qualified expense if the student is enrolled at least half-time.
Distributions in excess of qualified expenses are taxed to the beneficiary to the extent that they represent earnings on the account. A 10% penalty tax is also imposed.
The Department of Labor issued a new rule updating the overtime pay requirements. The change is effective December 1, 2016. Under the current rules, if an employee meets the following requirements they are exempt from the overtime pay requirements:
The new rule increases the threshold from $455 per week to $913 per week ($47,476 annually). This rate will automatically update every three years based on wage growth. The rule allows for up to 10% of the salary amount towards the exemption threshold to be met by non-discretionary bonuses, incentive pay or commissions. Those amounts must be paid at least quarterly.
What employees does the law effect:
Many non-profit employees will still be exempt as the $500,000 threshold is only for activities with a business purpose and does not include:
Starting December 1, 2016, to comply with the law employers with employees subject to the overtime laws will need to either: