The Inflation Reduction Act (IRA), signed into law on August 16, 2022, includes tax provisions affecting businesses, individuals, the clean-energy industry, healthcare, and more. Let’s take a look:
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Small employer HRAs or QSEHRAs (Qualified Small Employer Health Reimbursement Arrangements) allow small businesses without group health plans to set aside money, tax-free, for employees to use toward medical expenses – including the cost of buying health insurance. Here’s what small business owners need to know about QSEHRAs.
Included in the 21st Century Cures Act enacted by Congress on December 13, 2016, was a provision for QSEHRAs, which permit an eligible employer to provide a qualified small employer health reimbursement arrangement (QSEHRA), which is not a group health plan and thus is not subject to the requirements that apply to group health plans.
QSEHRAs must meet several criteria such as:
Any small employer from a startup to a nonprofit that doesn’t offer a group health plan is able to set up a QSEHRA as long as they meet certain rules (see below). Small employers are defined as an employer that is not an applicable large employer (ALE). An applicable large employer is defined as one that employs more than 50 full-time workers, including full-time equivalent employees, on average.
If a small employer currently offers a group health plan but wants to set up a QSEHRA, the group health plan must be canceled before the QSEHRA will start.
Yes. One of the most important rules is that in order for employees to participate in a QSEHRA, they must have health insurance that meets minimum essential coverage. That is, indemnity, short-term health insurance, and faith-based insurance plans (e.g., Liberty HealthShare) do not qualify. Health insurance plans purchased through the Marketplace meet this qualification. Employers may choose whether to reimburse employees for both medical expenses and health insurance premiums or just premiums.
Furthermore, while there are no minimum monthly contribution limits, there is an annual maximum contribution limit. For 2022, the limit is $454.16 per month for individuals and $920.83 per month for families.
QSEHRAs are funded entirely by the employer. As such, employees are prohibited from making contributions.
Eligible employers are required to provide written notice to eligible employees at least 90 days before the beginning of a year for which the QSEHRA is provided. In the case of an employee who is not eligible to participate in the arrangement as of the beginning of the year, the written notice must be furnished on the date on which the employee is first eligible. The written notice must include:
If you have any questions about QSEHRAs or are wondering whether your small business would benefit from a QSEHRA, don’t hesitate to call.
San Jose: (408) 252-1800
Watsonville: (831) 726-8500
CPA Firm Experience Required
SUMMARY:
The Senior Accounting Manager will be a professional with strong accounting skills to be responsible for the firm accounting and a variety of financial functions including the month-end close, hands on day to day accounting operations (G/L and A/P), accounting research, and process improvements. The Accounting Manager is expected to function at a high level of expertise and competency and use sound judgment while producing consistent results. Problem solving and initiative, with a strong desire to analyze, investigate, and resolve are essential elements for success in this position. This position may also include Audit Services and or Client Accounting Services.
RESPONSIBILITIES:
EDUCATION and/or EXPERIENCE
OTHER SKILLS/ABILITIES
About Wheeler:
We’re not your typical CPA firm. Yes, we provide audit, tax, consulting, and technology services to a wide range of clients― but we do it differently. We’ve got the dynamic culture of a startup, with the stability and reputation of company of nearly four decades. We’re creative. We’re problem solvers. We’re calculated risk takers. We believe in having a healthy life-work balance, giving back to our community, and having fun. Consistently named a “Best Accounting Firms to Work For” by Accounting Today, we strive to create a unique and rewarding environment for our team.
Location:
San Jose or Watsonville, California
Please e-mail resume and cover letter to resumes@wheelercpa.com
Beginning June 30th, 2022 the CalSavers Mandate required employers in California with 5 or more employees to sponsor a retirement plan for their workers. This August, Senate Bill 1126 was signed into law, which extends the requirement to any employer with at least one employee. This now applies the mandate to most employers in the state, who will have until December 31, 2025 to register.
CalSavers is California’s retirement savings program aimed at the workers who don’t currently have a way to save for retirement. If employers don’t provide their own retirement plan, they must offer their workers CalSavers, the state-operated retirement savings plan. Failure to provide either will result in fines for the employer.
Questions about the CalSavers Mandate changes? Don’t hesitate to contact the office!
San Jose: (408) 252-1800
Watsonville: (831) 726-8500
On Saturday, August 27, the thirteenth annual JL Challenge was held at Spring Hills Golf Course. This is the annual fundraising event for the Jerry Loyola Foundation whose mission is to provide quality of life support for families battling cancer and promote junior golf within the community. The foundation honors the memory of Jerry Loyola, a great young man and talented golfer with a promising future ahead of him. Jerry lost his battle with cancer in 2009 at the tender age of 24. Wheeler Accountants’ Dennis Campbell has supported this organization by providing income tax preparation services since its inception. The firm has continued this tradition since 2017 and is recognized as a major sponsor.
The format for this event was a three player scramble, with Team Wheeler consisting of Steve Stringari, Michael Gurr and Dennis Campbell. In the gross flight, there was a tie for first place with a 14 under par score of 57. Rudy Ortega, Scott Ogden and Kenny Mensch were declared winners by a scorecard playoff over Gary Yoro, Jack Hoenes and Ryan Mock. The net flight was won by Andy Rogers, Bill Mullins and Todd Glo with a net score of 58.
Since the Covid-19 social distancing protocols have been relaxed, the event was able to return to a shotgun start and featured a raffle, live auction and a dinner catered by D’La Colmena. The event, once again, was a huge success and enabled the foundation to continue its mission. The individual event known as the “Battle for the Belt” will be held later in the year.
It was a great sunny enjoyable day for all who participated. The tradition of this event and its support for this great cause will continue in our community for many years to come!
With plentiful opportunities for teen employment this year, now is the perfect time to consider opening a Roth IRA for your minor child. Here’s what you need to know.
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A cash windfall is any amount of money that you didn’t expect to receive and is over your regular income. Most would consider it to be any amount over $1,000 – and quite often, the amount of money is much more than that. For example, you may have received a bonus at work, an inheritance, a legal settlement, a profit from selling a property or business, or won the lottery.
Continue readingWhen someone dies, their surviving spouse or representative must file a final tax return for the deceased person or decedent. Usually, the representative filing the final tax return is named in the person’s will or appointed by a court. Sometimes when there isn’t a surviving spouse or appointed representative, a personal representative will file the final return. Other than noting that the person has died on the final tax return, the IRS doesn’t need any other notification of the death.
Three Things Taxpayers Should Know About Filing the Final Return:
Who Signs the Return?
When e-filing, the surviving spouse or representative should follow the directions provided by the software for the correct signature and notation requirements. For paper returns, the filer should write the word deceased, the deceased person’s name and the date of death across the top. Here’s who should sign the return:
Appointed representative. Any appointed representative must sign the return. If it’s a joint return, the surviving spouse must also sign it.
Surviving spouse. If there isn’t an appointed representative, the surviving spouse filing a joint return should sign the return and write in the signature area labeled, filing as surviving spouse.
No appointed representative and no surviving spouse. If there’s no appointed representative and no surviving spouse, the person in charge of the deceased person’s property must file and sign the return as “personal representative.”
Other Documents to Include:
If tax is due, the filer should submit payment with the return. If they can’t pay the amount due immediately, they may qualify for an IRS payment plan or installment agreement.
Qualifying Widow or Widower
Surviving spouses with dependent children may be able to file as a Qualifying Widow(er) for two years after their spouse’s death. This filing status allows them to use joint return tax rates and the highest standard deduction amount if they don’t itemize deductions.
Questions?
Don’t hesitate to call if you have any questions about filing a final tax return for someone who has passed away.
San Jose: (408) 252-1800
Watsonville: (831) 726-8500
By law, all taxpayers have fundamental rights when interacting with the IRS, and all taxpayers should know and understand their rights. Ten categories of rights are presented in the Taxpayer Bill of Rights. Here’s an overview:
1. The right to be informed. Taxpayers have the right to know what they need to do to comply with the tax laws.
2. The right to quality service. Taxpayers have the right to receive prompt, courteous, and professional assistance when working with the IRS and the freedom to speak to a supervisor about inadequate service.
3. The right to pay no more than the correct amount of tax. Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.
4. The right to challenge the IRS’s position and be heard. Taxpayers have the right to object to formal IRS actions or proposed actions and provide justification with additional documentation.
5. The right to appeal an IRS decision in an independent forum. Taxpayers are entitled to a fair and impartial administrative appeal of most IRS decisions, including certain penalties.
6. The right to finality. Taxpayers have the right to know the maximum amount of time they have to challenge an IRS position and the maximum amount of time the IRS must audit a particular tax year or collect a tax debt.
7. The right to privacy. Taxpayers have the right to expect that any IRS inquiry, examination, or enforcement action will comply with the law and be no more intrusive than necessary.
8. The right to confidentiality. Taxpayers have the right to expect that their tax information will remain confidential.
9. The right to retain representation. Taxpayers have the right to retain an authorized representative of their choice to represent them in their interactions with the IRS.
10. The right to a fair and just tax system. Taxpayers have the right to expect fairness from the tax system. This includes considering all facts and circumstances that might affect their liabilities and ability to pay or provide information timely.
Questions or concerns about your rights as a taxpayer? Help is just a phone call away.
San Jose: (408) 252-1800
Watsonville: (831) 726-8500
Filing an error-free tax return is key to taxpayers getting any refund they are due as soon as possible. Using Online Account on the IRS website is the fastest and easiest way to see account information such as estimated tax payments, prior year adjusted gross income, and economic impact payment amounts. Taxpayers who don’t have an account will need to create one.
Taxpayers can also request a tax transcript, free of charge. There are five types of transcripts:
Each transcript type should be reviewed by the taxpayer to determine which one best meets their needs. Don’t hesitate to call the office if you need help with this.
IRS transcripts are a good way to check for fraudulent activity. However, ordering a transcript will not help them find out when they will get their refund. The Where’s My Refund? tool provides the most up-to-date details about whether a tax return has been received and if the IRS has approved or sent the refund.
To protect taxpayers’ identities, the transcripts partially hide personally identifiable information such as names, addresses, and Social Security numbers. All financial entries are fully visible.
There are three ways taxpayers can get transcripts:
Online. People can view their tax records in their Online Account, as well as visit Get Transcript Online to view, print, or download all transcript types.
By mail. Taxpayers can use Get Transcript by Mail to get a tax return or tax account transcript delivered within 5-10 calendar days. They can also submit Form 4506-T to request any transcript type. Most Form 4506-T transcript requests are processed within 10 business days and then mailed. Form 4506-T is available on IRS.gov’s Forms, Instructions, and Publications page.
By phone. Taxpayers can call the IRS’s automated phone transcript service at 800-908-9946 to get a tax return or tax account transcript delivered by mail within 5-10 calendar days.
Please contact the office if you need assistance obtaining a tax transcript. As always, help is just a phone call away.
San Jose: (408) 252-1800
Watsonville: (831) 726-8500
