ALABAMA CPA MAGAZINE I OCTOBER 2013
ASCPA Partners Issue
The Alabama CPA MAGAZINE Alabama Society of Certified Public Accountants P.O. Box 242987 Montgomery, Alabama 36124-2987 1-800-227-1711 334-834-7650 www.ascpa.org Officers Renee B. Hubbard, Chair Don McCleod, Chair-Elect Dr. Lowell S. Broom, Vice-Chair James R. L. Carroll, Secretary-Treasurer Steven A. Shelton, Past Chair Board of Directors James Adam Causey Allison H. Guice Paul Marcus Hamilton Kate J. Ham Sharon S. Jackson Robert Rush Letson III Bradford A. Lynch Jason L. Miller Amanda N. Paul Michael C. Reibling Matthew T. Roeder Lewis T. Shreve Chasity L. Sweatmon Daniel K. Tew Alison Nicole Cunningham, Young CPA Lindsey S. Weems, Young CPA AICPA Council Members William H. Carr Renee B. Hubbard E. Lamar Reeves Jimmy L. Williamson,
Message from the Chair... Fall has finally arrived and brought with it the summer heat we managed to avoid in June and July. For most of us in our great state of Alabama, fall is a time for FOOTBALL which means our weekends are filled with football games, tailgates, and ESPN 24/7. As CPAs, we are often referred to as the most trusted business advisor. I believe that to be true because of the time and effort we put into developing personal relationships with our clients, business associates and community leaders. We take a personal interest in our clients’ success and we walk beside them through tough times as well. Our clients are often our neighbors. Many times I find myself on the phone with a client discussing an issue that has absolutely nothing to do with accounting, tax or numbers. They just wanted to talk the issue over with someone they could trust and who cared about what they had to say. I believe you can find this same type of commitment and trust among your ASCPA leadership. This month’s magazine highlights several of our ASCPA business partners: those who walk alongside the ASCPA during the year and support our many programs and conferences. A partner is an integral part of the success of any organization, including our association. Our leadership works hard to develop relationships with partners who can provide our members with quality services. Some of their stories are shared in this issue. Fall also provides me the opportunity to start my ASCPA Chapter visits. I plan to take some time during each visit to discuss the proposed by-law amendment outlined in the September magazine. I am very excited about this proposed change for several reasons, but most importantly I feel it will give members who are not interested, or cannot serve at the chapter level, an opportunity to serve on the ASCPA Board. This is also the time of year that college seniors around the state are polishing up their resumes and beginning to prepare for the transition from college students to employees. This is of personal interest to me as a recruiter for my firm. It is such a blessing to have the opportunity to meet students during their final year and watch them get their career started in accounting. Last month the ASCPA hosted the 27th Annual Accounting Interview Day. 16 recruiters and 55 students from 12 schools participated. In an effort for our event to compete with “signing days” at the major schools, we have moved AID to September. If you have not had the opportunity to participate in this event, be sure to put it on the schedule for next year. The students are high quality and the interaction with them is important. This month marked my 28th anniversary with Jackson Thornton. Don’t rush to get out your calculators! I also have two children in college so I will just admit it…. I am over the hill. Seriously, I am very thankful for the relationships developed during my career at Jackson Thornton and also while serving alongside the leadership at the ASCPA. I look forward to building new ones with many of you during this year. Until next time, I hope your team comes out on top each Saturday. Unless, of course, they are playing my team.
Renee UAH students at Accounting Interview Day 2013
Past Chair, AICPA The Alabama CPA Magazine is published by Alabama Society of Certified Public Accountants as a membership service to Society members. Views and opinions appearing in this publication are not necessarily endorsed by the ASCPA. The deadline for submitting materials for publication is the first of the month preceding issue date.
Jeannine P. Birmingham, CPA, CAE, CGMA President and CEO Diane L. Christy, Editor
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The Alabama CPA MAGAZINE
Partners
ASCPA Partners – Building Connections for Members
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ne of the ways in which the Alabama Society of CPAs helps members is by cultivating partnerships with organizations whose products or services provide value. These companies are fully integrated in the programs and activities of the ASCPA. They sponsor conferences, exhibit at the Society’s largest member-driven events, advertise in the Alabama CPA magazine, sponsor and field teams for the Young CPAs’ charity golf tournament, support student programs and provide customized services for 6800 members. While the intent is to obtain discounts for members, these partnerships also result in increased revenue for the ASCPA. Advertising sales alone have increased 180% over the course of the last three years, making it possible for the magazine to grow by 25%. The Alabama Society is proud to announce that the latest partner, Wells Fargo, is the preferred provider of merchant services for the Society and its members. To sign up for their program, contact Travis Whitley, Assistant Vice President, Wells Fargo Merchant Services, 706.604.0475, travis.whitley@wellsfargo.com.
Interested in becoming more involved with the Alabama Society by marketing your business? The 2014 Marketing Guide will be available on the ASCPA website November 1. To receive a copy by mail send your contact information to Jennifer Oleksa, joleksa@ascpa.org or Diane Christy, dchristy@ascpa.org.
The Alabama CPA MAGAZINE
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26th Annual Governmental Accounting & Auditing Forum December 11–12, 2013 Birmingham Marriott Working with the government can feel like a game of chance. Are you losing a turn, going bankrupt, or are you winning “big money”? Let’s work collectively to weight the odds in our favor.
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The Alabama CPA MAGAZINE
Partners - Paycheck
A Beginner’s Guide to Health Care Reform
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Aaron Clark, Paychex
erhaps the number one thing on every small business owner’s mind is Health Care Reform (HCR). Even though most businesses won’t reach the 50 employee threshold that has been talked about in the media, there are still several items in the ever-changing HCR that will affect small businesses in Alabama. Here are a few of the provisions that take place this year: • The Medicare Part A (hospital insurance) tax rate on wages increased from 1.45 to 2.35% on earnings over $200,000 for individual taxpayers and $250,000 for married couples filing jointly. A 3.8% assessment is issued on unearned income for higherincome taxpayers. – It is important to note that this rate only affects the employee and that the employer match caps out at 1.45% • Flexible spending account contributions are limited to $2,500 per year, and will increase annually by the cost of living adjustment. • Open enrollment for state and federal marketplaces begins in October. As of October 1, 2013, employers must provide notices to employees on the marketplaces. – While the Department of Labor recently came out and said that employers will NOT be penalized for failing to notify their employees, the mandate is still in place.
• Health reimbursement arrangements (HRAs); • Dental and vision plans, unless they satisfy the requirements of a “limited scope dental or vision benefit” under the Health Insurance Portability and Accountability Act of 1996 (HIPAA); • Health flexible spending accounts (health FSAs), unless they satisfy the requirements of an “excepted benefit” under HIPAA; and • Employee assistance plans, disease-management programs, or wellness programs if the program provides significant benefits in the nature of medical care or treatment. This link will send you to a chart showing the various types of coverage and whether they are subject to the fee. http://www.irs.gov/ uac/Application-of-the-Patient-Centered-Outcomes-Research-TrustFund-Fee-to-Common-Types-of-Health-Coverage-or-Arrangements HCR is, without a doubt, a fluid system that will more than likely be tweaked and changed over the coming months and years. If you would like more information on HCR and how it will affect your clients, please visit www.paychex.com/health-reform/. For more information on Paychex services and products, contact Aaron Clark, District Sales Manager, 404.536.6281 (mobile), 205.991.3990 Ext. 56308 (office), jaclark@paychex.com.
Starting in 2014, here is the main provision that will be put in place: • Federal and state marketplaces launch in January. U.S. citizens and legal residents must have qualifying health coverage. Those who cannot demonstrate that they have coverage will be penalized equal to the greater of $95, or 1% of taxable income in 2014. Therefore, even though employers are not required to provide health insurance coverage to their employees, the employees themselves will still need coverage. Starting in 2015, employers will be under the rules below. These are commonly known as Employer Shared Responsibility (ESR) or “play or pay” requirements. • Employers with 50 or more employees who do not offer coverage and have at least one full-time employee who receives a premium tax credit may be assessed a $2,000 fee per full-time employee. The first 30 employees are excluded from the assessment. • Employers with 50 or more employees who offer coverage but have at least one full-time employee receiving a premium tax credit may pay the lesser of $3,000 for each employee receiving a premium credit, or $2,000 for each full-time employee. The first 30 employees are excluded from the assessment. For those employers who already provide health insurance for their employees, there are a few changes for them as well. The Affordable Care Act created an entity known as the Patient-Centered Outcomes Research Institute (PCORI). The institute researches and compares the clinical effectiveness of different medical treatments, and it will be funded by clinical effectiveness research fees (PCORI fees). These fees will be assessed on insurance carriers and plan sponsors by the ACA, and depending on how you handle your health insurance, you may be liable. The PCORI fees affect each plan year ending on or after October 1, 2012, and before October 1, 2019, and apply to: • Major medical plans; • Retiree-only plans; The Alabama CPA MAGAZINE
2013 67th Annual Federal Tax Clinic November 21 - 22, 2013
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he Alabama Federal Tax Clinic Inc., the Alabama Society of Certified Public Accountants, the Alabama State Bar, and The University of Alabama invite you to the 67th Annual Federal Tax Clinic. The Board itself is comprised of members appointed by the Alabama State Bar, the Alabama Society of CPAs, and The University of Alabama. Using their expertise and feedback from Clinic participants, the Board has developed and maintained a quality clinic for more than 60 years! This year the Clinic will be held on Thursday, November 21st and Friday, November 22nd, at the Bryant Conference Center on the campus of The University of Alabama in Tuscaloosa. Early Registration: Register before October 15th to be entered in the drawing to win a pair of tickets to the 2013 Alabama vs. Auburn football game! 1st Time Attendees: First time attendees are eligible for half price registration at $175. Group Discount: Companys sending more than 3 individuals will receive a group disocunt of $315 per person if registered together. To take advantage of any of these discounts please print this form and fax it to (205) 348-6614. 5
The Exceptional Foundation Receives a Big Check
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ducation VP Jennifer Oleksa was the ASCPA’s representative on Thursday, September 19, 2013 at The Exceptional Foundation’s annual Art Show fund-raiser. She was there to admire (and possibly purchase) artwork as she concluded two days of administering education seminars in Birmingham. But Jennifer was also there to present the giant check; proceeds of the Pangeatwo Charity Golf Tournament, organized and managed by the Birmingham Young CPAs and the Alabama Society’s Young CPAs. Partnering with The Exceptional Foundation has been a joy and so meaningful to the Society’s members. It’s such fun having the Foundation’s clients and board members attend the tournament each year to help remind all of the reason for the event. 2013 was especially touching with the Pledge of Allegiance and Star-Spangled Banner led by Exceptional Foundation Boy Scouts. Of
course, the success of this year’s tournament would not have been possible without the generous support of Pangeatwo. The Young CPA golf committee, Lacey Williams and Amanda Freeman from the ASCPA, the Exceptional staff, as well as Kelly Campbell of Pangeatwo did an
amazing job of minimizing expense and maximizing revenue! Excellent project management resulted in another record year: net proceeds of $40,846, shared equally between the Exceptional Foundation and the ASCPA’s Educational Foundation. Congratulations!
Give thanks without the turkey: Pay it Forward.
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ust think: no heartburn, no naps on the couch, no annoying relatives. Instead, you can give thanks for your life as a CPA by volunteering for the Young CPAs’ Pay it Forward campaign – the annual high school classroom blitz November 18-22. After five years as one of the few financial education programs in Alabama schools, the blitz is now a welcome addition to help fulfill the new graduation requirement. Alabama
high school students must now complete a one credit course which includes financial education, career planning and technology. As a CPA, you’ve got all the bases covered! Using the National Endowment for Financial Education (NEFE) materials, volunteers will lead class discussions from Module Two, “Borrowing: Use-Don’t Abuse”, with a training webinar on the materials November 5. Adena Whitman of the League
of Southeastern Credit Unions will lead the training. You are also encouraged to share your story of becoming a CPA. Celebrate Thanksgiving a week early by giving back to the profession which has given you so much. Volunteer for Pay it Forward. Contact Lacey Williams, lwilliams@ascpa.org to volunteer or call her at 334.386.5753 with your questions. Now you can have a second piece of pumpkin pie.
Hillcrest High School, Tuscaloosa 6
The Alabama CPA MAGAZINE
Partners - Southeastern Financial Group Fully Insured Retirement Plans Can Help Your Business Owner Clients Play Catch Up On Retirement Planning
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s you know, your clients have seen the harsh economic climate of the last several years cause extreme volatility in the value of their retirement plan assets. For your small business owner clients, the barriers to a secure retirement are likely to be even greater. Although successful entrepreneurs often have higher incomes and assets than traditional wage earners, this doesn’t always translate into significant retirement savings. Many business owners are so focused on running their enterprises that they haven’t taken the steps needed to prepare for their fast approaching retirement. The good news is that you can help them. The fully insured retirement plan as outlined in IRS Section 412(e)3 may allow your high income, closely held business owner clients to make significant contributions to a plan that features a guaranteed* benefit level at payout. The dual features of a high contribution rate and a known benefit at retirement can help these valued clients catch up on savings and plan post-retirement income streams. In contrast to retirement vehicles built around stocks and bonds, market volatility is simply not an issue in fully insured retirement plans, which are funded with guaranteed* annuities and may also allow for life insurance** – which may be an attractive strategy for clients nearing retirement. Plan participants are guaranteed* to receive the accumulated value of their account upon retirement. Moreover, because life insurance may be included in the plan, beneficiaries will receive a partially tax-deductible death benefit (face amount minus the contract’s cash value). Think about your high income, small business owner clients – specialty physicians, consultants, engineers, attorneys and architects. They are all potential prospects for a fully insured retirement plan. The best candidates are within 15 years of retirement and usually have fewer than 10 employees, the majority of whom are younger and paid considerably less than the principal(s). They have experienced the recent market volatility and want more stable performance. The business needs to be mature because the contributions are not discretionary. The business commits to making fixed, ongoing contributions to the plan. The contribution formula must be non-discriminatory among employees, but the bulk of the benefit generally accrues to the principal(s), because age weighted formulas are used to calculate the contributions. In short, the fully insured retirement plan may allow your appropriate business owner clients to capitalize on the maximum allowable tax deduction (see chart below).
The Alabama CPA MAGAZINE
When helping your client implement a fully insured retirement plan, it’s vitally important to select a partner with a strong reputation and good financial ratings. These plans have been in the marketplace for a long time, but not all providers have experience with them. Look for a company who can provide your clients a turnkey solution to administer the plan.
Contact Mike LaHurd for more information: 205-313-6705 michael.lahurd@esoutheastern.com *Guarantees are based on the claims paying ability of the insurance carrier. **If life insurance is used it must meet the incidental benefit rules.
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4:02 PM The Alabama CPA 3/5/13 MAGAZINE
MEMBERS IN MOTION Promotions and New Positions Jackson Thornton recently announced the following promotions. Joseph Vickery, Jason Davis and Adam Causey have all been promoted to senior manager. Vickery, who joined the firm in 1998, specializes in not-for-profit and govern- Joseph Vickery ment audits, and manages the Employee Benefit Plan audit practice. Vickery has served on the Jackson Thornton Managers’ Advisory Committee, and has served as a Loaned Executive for the United Way Jason Davis for the last two years. He received his undergraduate and graduate degrees from Auburn University. Jason Davis, who joined the firm in 2001, specializes in financial institution Adam Causey and cotton industry audits. Davis is in his second year of the three-year Alabama Banking School and has served on the Firm’s Managers’ Advisory Committee. He received his undergraduate and graduate degrees from Auburn University.
Jackson Thornton also promoted Will Jones and William Sheffield of the firm’s Utilities Group, to manager; and Ashley Taylor, of the Business Valuation and Litigation Consulting Group, to manager.
The Alabama CPA MAGAZINE
Will Jones
The Mitchell College of Business at the University of South Alabama has announced that Thomas William Sheffield G. Noland has been appointed as the chair of the department of accounting. Dr. Noland is a former academic fellow at the Securities and Exchange Commission and has also worked for the Federal De- Ashley Taylor posit Insurance Corporation (FDIC). He is a retired U.S. Army Reserve lieutenant colonel. Noland currently serves as the adviser
Adam Causey, who joined the firm in 2006, provides tax and consulting services for small businesses and individuals. Causey currently serves as president of the Jackson Thornton Young Professionals group and serves on the Firm’s Managers’ Advisory Committee. He is a Board member for the Alabama Society of Certified Public Accountants and the Montgomery Zoological Society. Causey serves as Treasurer of EMERGE and was selected as a member of the Montgomery Museum of Fine Arts Junior Executive Board for 2013. He is also a member of Helicity Montgomery and a Chamber Ambassador. Causey received his undergraduate degree from Auburn University Montgomery. CDPA announced that Charlsa Silcox has joined their firm as a senior tax manager. Silcox is a graduate of Athens State University, became a CPA in 1988 and has worked with two other major Huntsville public ac- Charlsa Silcox
for Beta Alpha Psi and as a member of the ASCPA Education Committee.
counting firms in her career.
Beanson & Nalley recently promoted Teresa (Tara) Spiegle to senior consultant in the firm’s assurance Thomas Noland and advisory department. Her experience includes audits of government contractors, local governments, employee benefit plans, manufacturers, bio-technology and not-forprofit organizations. She is a graduate of Birmingham-Southern College.
Congratulations! Till, Hester, Eyer & Brown, P.C. is celebrating its 50th anniversary in 2013. The Birmingham firm provides accounting, auditing, tax and management advisory services to a wide variety of clients throughout the southeast.
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Alabama Accountability Act – Time is Running O
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n May 2013, the Alabama Accountability Act (AAA) was passed and signed into law by the Governor. The Act allows a yearly $25,000,000 ceiling for available credits to contributing taxpayers and a refundable tax credit for the families. The purpose of this bill was to give education alternatives to low income students, traditionally in underperforming school districts, by allowing students in failing schools to transfer to a non-failing school, public or private, on the approved list. AAA also requires the State Superintendent of Schools to list failing schools. AAA provides a tax credit to the parents of a child transferring out of a failing school and a credit to the donor. The credit to the parent is refundable and not included in the $25 million annual credit limitation. The donor’s credit is nonrefundable and limited to 1/2 the current year’s Alabama income tax for corporations (not Sub S) and individuals only (the credit is not allowed for any pass through entities and must be in cash). The individual yearly credit is capped at $7,500 per year for the individual Alabama taxpayer. AAA program gives the donor unprecedented power to direct the spending of up to half of its current Alabama tax bill for a regular corporation (capped at $7,500 for an individual). The donor can use the credit amount in determining Alabama estimated tax payments due in the year of donation. The donor’s available credit, should it exceed 1/2 of the actual income tax, can be carried forward three years Actual tax savings from the AAA tax credit is minimal unless the taxpayer is in alternative minimum tax, (AMT). An individual taxpayer in AMT can derive an approximate $2,000 federal tax savings purely from reducing the state tax payment which is part of the mechanics of the AMT tax computation. The savings are minimal where the contribution would not have been made absent the credit. The donation is merely a replacement for 1/2 the tax payment that would be due and thus, no actual cash savings. Small tax savings can
occur where the AAA contribution is substituted for another charity contribution slated to be made. In this case, the substitution to the AAA program will create an actual tax savings of approximately .4% for the individual and 1.38% for a corporation. The act has built in safeguards to prevent potential fraud or abuse of the credit as well as allocating the credit. The donor must obtain an electronic receipt to take the credit and that can only be obtained through the Department’s website. AAA also provided the donor assurances that at least 95% of the money donated goes to the scholarship program. The Department‘s website has lists of Scholarship Granting Organizations (SGO) and private schools who have agreed to be in the program. As a condition to participate each SGO has agreed to limit their administrative costs that can be funded by donations it receives to 5% of the fund raised. AAA puts certain restrictions on how the scholarships can be awarded for the first eight and 1/2 months, but that is beyond this article. Any undistributed scholarship money must be segregated into its own interest bearing account. The donor can select any SGO he wants to use to make his donation. The SGOs are of different groups, including some faith based, so the donor should check each one out to see it is a good fit. The donor cannot put any restrictions on his donation to the SGO nor can any family member be benefited. The donor can suggest to the SGO what school should receive the donation but it is not binding on the SGO. The selection of an SGO is under the donor’s control so it is important that there is: • Shared philosophy with the SGO and • The SGO’s willingness to honor the donor’s request for what school’s scholarship program should receive his donation. • The SGO compliance record in years after 2013.
HOW CAN A DONOR OBTAIN A SHARE OF THE $25 MILLION TAX CREDIT ALLOTMENT FOR 2013? 1. To reserve an Alabama credit, go to the Alabama Department of Revenue’s online portal at www.revenue.alabama.gov. 2. Once there, click on the MAT (My Alabama Taxes) link located on the left hand portion of the webpage. Donors not previously signed up for the MAT service, will need to register. For individuals to register with MAT, will need: • A social security number • Donor’s previous year’s Alabama Adjusted Gross Income 2011 or 2012 if filed • A valid e-mail address. 3. Once registered with MAT, donor will need to log into the account and then select the SGO Donation to reserve the credit for 2013. 4. A fter the credit has been reserved, the 30 day period begins in which the donation must both be made and an acknowledgement of receipt sent by the SGO. The department will then issue the electronic AAA credit to the donor. 10
Tom Zoebelein, CPA Tax Manager Pearce, Bevill, Leesburg, Moore, P.C 205-323-5440 www.pearcebevill.com
The Alabama CPA MAGAZINE
Out for Allocating the 2013 $25 Million Credit Ask Tom… Q: Is the AAA contribution tax credit limited to Alabama Residents only? A: There is no residency restriction for the taxpayer making the contribution, there is such a restriction on the refundable family tax credit. As much as this is an income tax credit, the donor would have to file an Alabama income tax return to qualify for the tax credit. Individual donor must not be taken as a dependent on another’s tax return. Q: What is the maximum amount of the scholarship granted? Is there a minimum? A: There is neither a statutory dollar maximum nor a minimum scholarship. The only restriction is the scholarship would be limited to full tuition and mandatory fees charged by the school. Q: Can a donor suggest what school his contribution is to be made? A: A donor may not attach any (binding) strings to his donation. The donor may request it, and the SGO may represent that they will use it for a particular school, but there would be no recourse if the SGO fails to follow through. In picking an SGO to which to direct donations, a donor will likely consider the SGO’s stated mission or goals, such as what type of schools they will help or even a particular school on which they will focus. Q: How much of a student’s cost to attend a nonpublic school can be funded in a scholarship grant? Is the ceiling for a scholarship the lesser of 50% of the tuition or $3,500? A: There is no specific dollar amount. The only requirement is that the award amount must be paid to the school for the benefit of a particular student. The $3,500 amount is an estimate of the maximum Parent Tax Credit under Section 8. It has no bearing on the scholarship amounts under Section 9. Q: How does a SGO separate the 5% allowable administrative allowance as it comes in? A: The 5% may be taken out and used for administrative expenses and the SGO sees fit. Q: Does the SGO have to segregate every donation and must it be placed in an interest bearing account? A: The scholarship funds (as a whole) need to be segregated, not individually. There is no requirement to have the funds in an interest bearing account, but if interest is made, it must be spent on scholarships grants.
2013 DEADLINE! The time to apply for the 2013 AAA credit has been compressed due to the Act’s late passage and implementation. Unused credit still available at midnight December 31, 2013 will expire, but 2013 donations placed with the SGO by the December deadline can be used any time during 2014. Donors should consider making larger donations to help use up all the available $25million credit to use the full $25 million allotment.
Q: How does the SGO disseminate information regarding the scholarships? A: There is no reporting/ communication requirement other than the annual reporting of the scholarship grants made and the annual reconciliation of the scholarship funds. Q: Can the SGO restrict the schools with whom it participates? Can the SGO restrict scholarships based on the religious institution supporting the nonpublic school? A: Note that the SGO is prohibited from discriminating in making its donations. This will probably be controlled by Federal Law. There is no state specific requirement. Otherwise, the SGO must also hit certain targets related to Low Income eligible students and current public/private school students. Additionally, donors are not allowed to direct money to a particular student when the donation is made to his chosen SGO. The Alabama CPA MAGAZINE
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The Alabama CPA MAGAZINE
Leadership Academy
Top Ten Reasons to Join Class IV of the ASCPA Leadership Academy (with an apology to David Letterman) 10.
The toolbox you build is tangible and long-lasting.
Here’s the Cliff Notes breakdown:
9.
• Four quarterly 8 hour in-person sessions beginning in May 2014 and concluding in May 2015. The other two classes are in late September and mid-January.
You can take what you learn in each session and put it into practice right away.
8. Materials are specific to YOUR everyday challenges.
7.
Rainmaker coaches are smart, funny and seriously skilled at bringing out the best in each member of the class. (And Scott Bradbary actually WAS a coach in his former lifetime!)
6. There is a hugely supportive atmosphere among participants. Class members help each other solve problems creatively. Let’s face it, your issue is probably shared by someone else.
• Coaching calls, individual and firm projects between in-person sessions. • Webinars and reading assignments between in-person sessions. • Graduation and special recognition awards at the final session. • $1000 per person cost, 50% of which is covered by the ASCPA. If managing partners at firms from as far away as Toronto think this program offers excellent ROI, maybe you need to check it out. Still undecided? ASCPA staff will put you in touch with Class I and II participants, and even management decision-makers for their feedback. Complete the application form available on the website www.ascpa.org and submit it, along with your resume, to the ASCPA no later than December 6. Acceptance letters will go out by December 30. Questions? Contact Diane Christy, dchristy@ascpa.org, 334.386.5752.
5. You’re encouraged to share what you’ve learned with your peeps back at the office; not only reinforcing the sessions for yourself, but also helping to inspire other team members.
4. You accumulate 32 continuing education credits (during two compliance years) while building serious skills.
3. The lunches are yummy! 2. There is a strong connection within each class. Reunions are being planned.
1. “What happens at Leadership Academy...” – you know the drill.
The Alabama CPA MAGAZINE
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We Welcome NEW CPAs Tyrone Aaron Columbiana
Allison Chiarella Birmingham
Austin Godwin Cullman
Christopher Jewell Dothan
Colleen Oliver Trussville
Sarah Sowell Fairhope
Melissa Archibald Mobile
Kendra Cook Jemison
Denise Gonzalez Birmingham
Justin Jordan Meridianville
Eric Orubele Alpharetta, Georgia
David Stephens Birmingham
Benjamin Armstrong McCalla
Timothy Cox Jr. Vestavia Hills
Kellyn Grugic Birmingham
Jared Koechner Birmingham
Rainer Park Birmingham
Alaina Tan Huntsville
Andrew Bailey Birmingham
David DeJong Birmingham
John Haggard Alabaster
Ryan Lefort Gretna, Louisiana
Emily Peace Hoover
Mark Tarnakow Vestavia
Joshua Baker Alabaster
Emily Dressler Birmingham
Tori Handley Boaz
Holly Lutz Toney
Emily Petty Florence
George Taylor Auburn
Charles Baker Jr. Birmingham
James Dulaney Montgomery
Meredith Harper Vestavia
Natalie Madden Sterrett
James Rather Mobile
Christopher Taylor Huntsville
Kathryn Baker Birmingham
Tyler Dunaway Enterprise
Michael Hendee Tampa, Florida
Elizabeth Magee Birmingham
Michael Rebarchak Birmingham
Cornesha Terry Montgomery
Bradley Bedwell Dothan
Joseph Dykes Birmingham
Samuel Hill Homewood
Stacy Manasco Homewood
Betty Ritchey Albany, Indiana
Amy Waldrop Pell City
Christopher Bowden Madison
Iesha Ellerbe Birmingham
Laura Hill Winchester, Tennessee
Melissa Marty Huntsville
Joshua Seaman Huntsville
Adam West Birmingham
David Boyd Jr. Birmingham
Claudia Elliott Vestavia
Ann-Brooks Hodgson Daphne
William Mays Hoover
John Shell Mobile
Tamra Williams Gordon
Kyle Bradberry Birmingham
Allison Erwin Hoover
Dominique Holmes Evergreen
Matthew McDaniel Millbrook
Jean Shepherd Troy
Phillip Wilson Birmingham
Brian Burleson Birmingham
Sterling Ethredge Daphne
Kayla Hoofman Camden, Tennessee
Sean McGriff Birmingham
Mary Sigmon Tuscaloosa
Ronald Wright Bessemer
Frank Cade Homewood
John Fain Jr. Birmingham
Melanie Hubbert Birmingham
Sommer McKenzie Montgomery
Margaret Smith Homewood
Choon Yeap Homewood
Jingfeng Cao Tuscaloosa
Paige Fitzgerald Indian Springs Village
Carla Ingram Memphis, Tennessee
Julie Myers Hoover
Prentiss Smith Jr. Pace, Florida
Mathew Fraser Moody
Michelle Jenkins Meridianville
Lana Nicholson Chelsea
Bob Smith, II Dallas, Texas
William Gilbert Jr. Mobile
Christopher Jernigan Mobile
Steven Nobles Jr. Mobile
Chen Song Birmingham
14
The Alabama CPA MAGAZINE
Meet the Staff
Atten-HUT! Holly Lord exchanges military life for the ASCPA
H
olly Lord has always been part of the U.S. military. First, as a child of an Navy father, later as the wife of a Navy man, whose family is also military. She grew up in Millbrook (outside Montgomery), was graduated from Stanhope Elmore High School and attended Auburn Montgomery for both her undergraduate degree (accounting) and her MBA. She had known Josh Lord in high school. But it was after he enlisted in the Navy and she completed her MBA that they married in Hawaii. While in college, Holly worked for Integrated Computer Solutions, a government contractor. She moved from being an intern to senior accountant during her 4 year tenure with them and had to qualify for a top secret clearance. There’s clearly a pattern emerging! Josh was assigned to the USS Enterprise, based in Norfolk, Virginia, as a logistics specialist, so the Lords moved to Virginia Beach. Holly didn’t waste any time in becoming the controller for Italy’s Fincantieri Marine Systems N. A. The shipbuilding giant constructs cruise ships at their location in Italy, but in the U.S. builds marine engines and steam turbines for the Navy. Their son Levi was born in 2010 and Holly elected to be at home with him. In the meantime, Josh got deployed with the Enterprise to the Mediterranean. [It was during this time that Somali pirates were captured and held as prisoners on the Enterprise. The pirates had taken over the yacht Quest, and held hostage its four American passengers; killing or fatally wounding them.] Holly moved back to Alabama while Josh was away for his 7 months of sea duty, then returned to Virginia for their assignment to Oceana NAS (and the birth of son Noah in 2012). On completion of his second tour, Josh resigned from the Navy and the family came home to Alabama. With both their families in the area (Josh’s dad, Dan Lord, is right-hand man to Joseph Borg at the Alabama Securities Commission) they were looking forward to settling permanently, buying a house and raising their children here. Holly decided to rejoin the workforce in February 2013. She contacted Warren Averett Wilson Price’s staffing division, and they immediately hired her to assist with a flood of BP claims and also placed her with the Alabama Society. She was hired on a temporary basis to fill in while CFO Amanda Freeman was out on maternity leave. When an opening unexpectedly occurred at the ASCPA, CEO Jeannine Birmingham quickly made Holly an offer to join the staff permanently as finance and administrative manager. She’s become an invaluable member of the Society staff, using her varied experiences in creative and effective ways. Does she have the staff marching in step? Not quite. But she does run a tight ship!
The Alabama CPA MAGAZINE
2014 Student Guide to Accounting Firms in Alabama We want to help you recruit and hire future staff accountants!
A
SCPA is preparing the 2014 Student Guide to Accounting Firms in Alabama to distribute to accounting students at Alabama’s college and universities. The Student Guide assists students in providing them with a free directory of public accounting firms throughout Alabama. This also helps public accounting firms gain exposure to students as they prepare to begin careers in accounting. Contact Lacey Williams, lwilliams@ ascpa.org to receive an information form. Your PAYMENT AND COMPLETED FORM must be submitted by Friday, November 1 for inclusion in the 2014 Student Guide.
2013 St ud en t ti nG Gu id e to Ac co un Am A Ab Al in S Fi rm
Next stop.Success. 15
16
The Alabama CPA MAGAZINE
Mastering the code.
EDITOR’S NOTE: We appreciate so much the feedback and response we received to the Top 50 Firms listing in the September magazine. The methodology for collecting that data is being carefully reviewed. For future listings, firms may be directly polled to ensure that the information is accurate and up-to-date. Help us help you by making sure that all eligible CPAs in your firm are members of the Alabama Society. Having a listing in the 2014 Student Guide to Accounting Firms in Alabama can further define your profile and is a wonderful recruiting tool. See page 15 for additional details on the Guide.
Knowing how to log in to your ASCPA member account can sometimes be a challenge. Here’s the key: username = your last name; password = your member number (located on the mailing panel of this magazine, and every magazine). It’s a 3, 4, or 5 digit number. Do not include any letters. Keep in mind that your member number as your password is the default setting. If you’ve reset it, but have forgotten it, you’ll need to request your password. Your email must be current in order for that to work! Or you can call the ASCPA for help, 334.834.7650.
As a member of the clan, you can use the family crest! You’re a member of the ASCPA and entitled to use Society logos on your website, as well as on your brochures or other marketing materials. There are full-color as well as black/white versions in jpg and eps formats; Young CPA logos are also available. Announce your affiliation to clients and other professionals! Contact Diane Christy, dchristy@ascpa.org or 334.386.5752 to receive the digital files. Inquiries from your advertising or graphics firm are also welcome.
Feeling Overwhelmed By The Challenge Of Payroll? W-2s
Complex Overtime Rules
Positive Pay
Electronic Tax Filing
Paid Time Off Overtime
401(k)
Security SUTA
Section 125 Deductions
Payroll Accuracy
Take control of complex payroll needs for yourself or Shift Differentials your clients with Microsoft Dynamics GP Payroll. The powerful Payroll solution (with or without Human Resources) Tips can stand alone to give you a payroll system that assures control, New Hires compliance and accuracy for 10 to 10,000 employees. Microsoft Dynamics GP Payroll can interface with Compliance most accounting systems. And, for a lot less than you think!
Audit Trails
Payroll Direct Deposit
Bank Reconciliation
Human Resources
For a free needs analysis to see if Microsoft Dynamics GP Payroll can be your payroll solution, call us at 205-592-9990 or toll-free 1-866-KIANOFF or e-mail: info@kianoff.com 1128 22nd Street South Birmingham, AL 35205
www.kianoff.com
Implementing and Supporting Human Resources & Payroll Solutions Since 1986 The Alabama CPA MAGAZINE
17
EDUCATION Express Field of Study
No.
Date(s)
Location
Title
Early Bird *Registration Non-Member Member Fee Fee Add-On
Birmingham 178 12/4/2013 Wynfrey Huntsville 177 12/3/2013 Jackson Center Mobile 180 12/6/2013 Holiday Inn Montgomery 179 12/5/2013 ASCPA Office 181* 1/6/2014 ASCPA Office 182* 1/9/2014 ASCPA Office
The Best Federal Tax Update Course by Surgent McCoy
Tax
199
224
50
The Best Federal Tax Update Course by Surgent McCoy
Tax
199
224
50
The Best Federal Tax Update Course by Surgent McCoy
Tax
199
224
50
The Best Federal Tax Update Course by Surgent McCoy 1040 Tax Return Update 2013 Corporate Income Tax Boot Camp
Tax Tax Tax
199 250 250
224 275 275
50 50 50
EDUCATION TRANSCRIPTS ARE NOW AVAILABLE The Education Department will email annual compliance transcripts by October 8 to all ASCPA members and non-members who attended education events 10.1.129.30.13. If you need a transcript now, you can view and print it by logging into your account on the ASCPA website, www.ascpa.org.
Did you complete self-study for some of your credits? You will need to log in to your self-study account and print out that proof of completion. These credits will NOT appear on your ASCPA transcript. Questions? Contact the education department at 334-834-7650.
HARD SHOES TO FILL? Where filling someone’s shoes is concerned, we get it. Fit goes beyond the shoe’s size to the style and comfort of the wearer. Otherwise, wouldn’t everyone walk around in the same shoes? We believe that when you connect the right person to the right job and the right individual to the right company, the shoes will be just right. We’re here to help you find the person to step into these shoes, And to make sure they can HIT THE GROUND RUNNING.
Going ape over education credits? Spend fewer bananas using the ASCPA’s web-based solutions.
www.ascpa.org Gather the clan, make a nest and learn, learn, learn. Dian Fosse would be proud. 18
www.itacsolutions.com TECHNOLOGY | CORPORATE PROFESSIONAL/CLERICAL GOVERNMENT/ENGINEERING | ACCOUNTING/FINANCE
Providing temporary/contract, contract-to-hire, and direct hire staffing solutions. SOLUTIONS
Birmingham | Mobile | Huntsville | Nashville The Alabama CPA MAGAZINE
ASCPA Education Registration Form Mail form to : ASCPA P.O. Box 242987 Montgomery, AL 36124-2987
Fax form to : Sherry Russ 334.834.7310 Scan/email to: sruss@ascpa.org
Register online at:
www.ascpa.org
REGISTRANT INFORMATION Last Name
M.I.
First Name
ASCPA Member Number
Firm / Employer State Certificate Number Address City
State
Zip
Business Phone
Business Fax
Please visit www.ascpa.org to view all registration policies, including information about cancellations and refunds. Please attach a description of special requests or contact us at (334) 386-5764.
Email Address (for registration confirmation)
Vegetarian ADA Request
Check if information has recently changed and needs to be updated in your member record Are you a member of the AICPA?
Yes
How did you hear about this class?
Course Date
No
Member Number: ____________________ (Required for discount; subject to verification) Newsletter
Website
Course Number
Course Title
Postcard/Special Mailing Course Fee ASCPA Member
NonMember
Other
AICPA Discount *see note (where applicable)
Book Fee ($20 per course)
Subtotal
Total: *CPAs who are members of the ASCPA may register at the member rate. CPAs who are not a member of the ASCPA or other State Society may register at the Non-Member rate. Please include the appropriate discount(s) when registering for events. CPAs who are members of the AICPA may deduct $30 from AICPA seminars ONLY (8 hrs classes). (These are identified in the CPE Schedule online or in the ASCPA newsletter). *Electronic course materials are included in the registration fee and will be emailed at least two weeks before the course date. You can choose to purchase a paper copy of the course materials for an additional fee of $20 per course. I acknowledge that I will receive course materials electronically (included in course fee). I would like to purchase my manual for $20 per class Check: I have enclosed a check payable to ASCPA in the amount of $ ___________ I authorize the ASCPA to charge $ __________ to my credit card. Credit Card:
MC
Card Number
Visa Month
C ompa n y C r edit C a r d
Discover Year
AMEX Expiration Date
Per so n a l C r edit C a r d
________________________________________ Print Cardholder’s Name
________________________________________________ Cardholder’s Signature
Address of cardholder
City, State, Zip of cardholder
The Alabama CPA MAGAZINE
3/11/13
19
Presorted Std US Postage PAID Permit No. 131 Montgomery, AL OCTOBER
2013
The Alabama Society of Certified Public Accountants 1041 Longfield Court P.O. Box 242987 Montgomery, AL 36124
Classified Practice for Sale in North Shelby County – long-standing practice with mix of business and individual clients. Services include tax, write-up, payroll and financial planning. Gross 200K+ and one experienced full-time employee. Also office condo for sale or lease. Contact Steve at slind@email.com Tax Senior Manager Wanted: The successful candidate will be a member of a leadership team at Sellers Richardson Holman & West, providing both tax compliance and consulting services to assigned clients and the lead person in maintaining relationships with clients on recurring tax matters. The Tax Senior Manager will gain valuable experience by working with multiple tax partners who will share their years of knowledge and experience gained from working with significant companies with complex tax issues. SRHW offers a local firm experience with access to large firm resources as a result of an alliance with McGladrey. We offer opportunities to participate in the development and leadership of multiple tax specialties. Our managers have excellent prospects for career advancement. We are interested in individuals who want a long-term career opportunity with potential for partner track. 8+ years CPA firm experience. www.srhwcpa.com/positions.html. BIRMINGHAM COMPANY WITH MULTIPLE LOCATIONS is seeking an experienced financial executive to manage the financial and administrative activities of the organization. The ideal candidate will have a bachelor’s degree in accounting and have strong analytical and communication skills. A CPA with advanced skills in Microsoft Excel, Word and Outlook is preferred. This position reports to the president of the company. Qualified candidates should submit resumes to ppelletier@cshgcpa.com.
YOUR PRACTICE WANTED: We are North America’s leader in practice sales. Let us navigate the complexities, locate the best match from a deep pool of qualified and serious buyers, and optimize your return on the years invested in building your practice. If you are considering a change, contact Alabama broker Lori Newcomer, CPA, at (888)277-6040 or LNewcomer@apsleader.com for a confidential discussion. Senior Audit Associate will be a member of a team providing audit services to assigned clients. He/ she will be the primary person involved in maintaining contact with those clients during fieldwork The Senior Tax Associate will gain valuable experience by working with multiple partners and managers who will share their years of knowledge and experience gained from working with significant companies in multiple industry specialties. Flexibility in schedules to manage personal and professional priorities is also supported at SRHW. CPA certificate desired. 2 to 4 years of recent experience providing audit services in a CPA firm environment. Apply at www.srhwcpa.com. Senior Tax Associate will be a member of a team providing both tax compliance and consulting services to assigned clients. He/ She will be a primary member of the delivery team maintaining relationship with the client. He/She will gain valuable experience by working with multiple tax partners and managers who will share their years of knowledge and experience gained from working with significant companies with complex tax. Flexibility in schedules to manage personal and professional priorities is also supported at SRHW. CPA certificate desired. 2 to 4 years of recent experience providing tax services in a CPA firm environment. Apply at www.srhwcpa.com.
GROWING BIRMINGHAM AREA CPA FIRM is seeking motivated, career-oriented professionals. Our firm is currently seeking to fill staff accountant positions. The ideal candidate should have a minimum of 2 years’ recent public accounting experience, be a CPA or be CPA-eligible and have strong analytical and communications skills. Our firm offers an excellent work environment and opportunity for growth and advancement. Salary and benefits are very competitive. Qualified candidates should submit resumes to ppelletier@cshgcpa.com. SENIOR WHITE COLLAR CRIME INVESTIGATOR: This position is full-time in Montgomery with the Attorney General’s office. The employee in this position conducts and coordinates investigations of alleged or suspected criminal violations involving white collar crimes, such as those which are financially motivated and committed for illegal monetary gain. SALARY: $59,517-$90,724. Requires a bachelor’s degree in accounting and six years of experience in financial examination, analysis and reconstruction of accounting/financial records. Complete an Application for Examination Form available at www.personnel.alabama.gov or any Alabama Career Center Office. Apply on-line, by fax (334.242.1110) or by mail at State of Alabama Personnel Department, PO Box 304100, Montgomery, AL 36130-4100. Pearce, Bevill, Leesburg, Moore P.C. in Birmingham is seeking a full-time tax supervisor, senior auditor and a senior tax accountant. The ideal candidates will be CPAs; dedicated individuals with 2-6 years of public accounting experience who value integrity, quality and professionalism. Visit www.pearcebevill.com for more information. To apply, send your resume to careers@pearcebevill.com.