2020 has thrown us some major curveballs. Despite the many disruptions of this global pandemic, the team at Christianson wants you to remember that your annual financial statement audit must go on. It may look a little different than it has in the past, so we encourage you to consider the following as you prepare for your year-end audit. Prepare for remote inventory observation and audit fieldwork Government restrictions and/or company policies may limit your auditor’s ability to travel this year. At Christianson, we’ve been performing remote inventory observations and remote audit fieldwork for over a decade in order to serve our clients across the nation. We’ve developed a streamlined process to perform your audit efficiently Read More...
Mileage Rates Experience Significant Increase
A big change was announced by the IRS on Friday for the optional standard mileage rates for business use of a vehicle. This rate will increase significantly in 2019, after increasing only slightly last year. For business use of a car, van, pickup truck, or panel truck, the rate for 2019 will be 58 cents per mile, up from 54.5 cents per mile in 2018. Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile. Because the Tax Cuts and Jobs Act suspended the miscellaneous itemized deduction for unreimbursed employee business expenses from 2018 to 2025, the notice explains that the standard mileage rate can't be used to claim a deduction for those expenses during that period. However, Read More...
New Standard of Accounting for Leases
At Christianson, we track any and all changes that impact our clients and the way their accounting processes are done. In this case, accounting for leases, which always has been a complex area, is undergoing significant change with the release of new lease standards by the Financial Accounting Standards Board (FASB). On February 25, 2016, the FASB issued the new standard, Leases (ASC 842). There are elements of the new standard that could impact almost all entities to some extent, although lessees will likely see the most significant changes. A basic premise of the new guidance is that a lease which “conveys the right to control the use of an identified asset for a period of time in exchange for consideration” creates an asset and a Read More...
Federal Judge Blocks Overtime Rule
Federal Judge Blocks Overtime Rule An employee’s exempt status is based on duties performed, not wages paid. A U.S. District Judge issued a nationwide injunction stopping implementation of the Department of Labor’s rule on overtime pay for exempt employees. It was set to take effect on December 1. According to the Washington Times, the judge ruled: “Congress defined the … exemption with regard to duties, which does not include a minimum salary level,” Judge Mazzant wrote. “The Department’s role is to carry out Congress’s intent. If Congress intended the salary requirement to supplant the duties test, then Congress, and not the Department, should make that change.” The full ruling is 20 pages, but this paragraph captures the essence Read More...
MN Minimum Wage Increase 2016
Effective August 1, 2016, the minimum wage in Minnesota will increase. The increase will impact all businesses, including agri-businesses. Hourly Rate Overview Below is a brief overview of the new minimum wage rates for hours worked beginning August 1, 2016. LARGE EMPLOYER Any enterprise with an annual gross dollar volume of sales made or business done of $500,000 or more $9.50 SMALL EMPLOYER Any enterprise with an annual gross dollar volume of sales made or business done of less than $500,000 $7.75 TRAINING RATE May be paid to employees younger than 20 years of age for the first 90 consecutive days of employment $7.75 YOUTH RATE Paid to employees younger than 18 years of age who are not covered under Read More...