FSA Limitation

Beginning in 2013, for a health flexible spending arrangement (FSA) to be a qualified benefit under a cafeteria plan, the maximum amount available for reimbursement of incurred medical expenses of an employee, the employee’s dependents, and any other eligible beneficiaries with respect to the employee, for a plan year (or other 12-month coverage period) is $2,500.

Employer Mandate

Under PPACA, an “applicable large employer” is subject to certain “shared responsibility” requirements. Under those requirements, an applicable large employer that (1) does not offer coverage for all its full-time employees, (2) offers minimum essential coverage that is unaffordable, or (3) offers minimum essential coverage that consists of a plan under which the plan’s share of the total allowed cost of benefits is less than 60 percent, must pay a penalty if any full-time employee is certified to the employer as having purchased health insurance through a state exchange with respect to which a tax credit or cost-sharing reduction is allowed or paid to the employee.

An employer is an applicable large employer for any calendar year if it employed an average of at least 50 full-time employees during the preceding calendar year. An employer is not treated as employing more than 50 full-time employees if the employer’s workforce exceeds 50 full-time employees for 120 days or fewer during the calendar year and the employees that cause the employer’s workforce to exceed 50 full-time employees are seasonal workers. A seasonal worker is a worker who performs labor or services on a seasonal basis, including retail workers employed exclusively during the holiday season and workers whose employment is, ordinarily, the kind exclusively performed at certain seasons or periods of the year and which, from its nature, may not be continuous or carried on throughout the year.

The penalty for any month is an excise tax equal to the number of full-time employees over a 30-employee threshold during the applicable month multiplied by one-twelfth of $2,000. In the case of persons treated as a single employer under the provision, the 30-employee reduction in full-time employees is made from the total number of full-time employees (i.e., only one 30-person reduction is permitted per controlled group of employers) and is allocated among such persons in relation to the number of full-time employees employed by each such person.

For example, say that in 2014, you fail to offer minimum essential coverage and have 100 full-time employees, 10 of whom receive a tax credit for the year for enrolling in a state exchange-offered plan. For each employee over the 30-employee threshold, you would owe $2,000, for a total penalty of $140,000 ($2,000 multiplied by 70 ((100-30)). This penalty is assessed on a monthly basis. Thus, the monthly penalty would be one-twelfth of $140,000. For calendar years after 2014, the $2,000 dollar amount is increased by the percentage (if any) by which the average per capita premium for health insurance coverage in the United States for the preceding calendar year exceeds the average per capita premium for 2013.

Small Business Tax Credit

PPACA provides a tax credit for a qualified small employer for nonelective contributions to purchase health insurance for its employees. Although the credit took effect in 2011, the amount of the credit increases from 35 percent (25 percent for tax-exempt organizations) of eligible premium payments to 50 percent (35 percent for tax-exempt organizations) in 2014.

Excise Tax on High-Cost Employer-Sponsored Health Coverage

Beginning after December 31, 2017, PPACA imposes an excise tax on certain health insurance providers for any excess benefit provided by an employer to an employee with respect to employer-sponsored health coverage. The excise tax is imposed pro rata on the issuers of the insurance. In the case of a self-insured group health plan, a health FSA or a health reimbursement arrangement (HRA), the excise tax is paid by the entity that administers benefits under the plan or arrangement. Where the employer acts as plan administrator to a self-insured group health plan, a health FSA or an HRA, the excise tax is paid by the employer. Where an employer contributes to a health savings account (HSA) or an Archer MSA, the employer is responsible for payment of the excise tax, as the insurer.

The ABV credential was established in 1998 by the AICPA and is only granted to a select group of qualified CPAs who meet the challenging requirements and are in good standing with the AICPA. Determining reliable business values is important in litigation, mergers and acquisitions, employee stock ownership plans, estate and gift tax matters, and other similar business situations.

BriersCPA, P,A. is a full-service CPA firm located at 3301 Bonita Springs Road, Bonita Springs, FL 34134, providing accounting, finance, tax, business management, and business valuation services to individuals, businesses, and estates. For more information, visit www.brierscpa.com or call 239-390-8882.

Bonita Springs, FL

“Alex is joining BriersCPA to further expand our firm’s services to individuals, estates, trusts, not-for-profit entities, and businesses. His knowledge, experience and attention to detail will allow us to create new internal efficiencies that enhance our service offerings from the accounting, tax and consulting perspectives,” said Mike Briers, BriersCPA shareholder.

Mr. Camejo is originally from New Jersey, where he was formerly with Advanced Health Media in Edison, NJ. Following relocation to Florida, he was a manager with Enterprise Rent-A-Car in three Southwest Florida locations before leaving to attend FGCU full-time. He is a member of the Florida Institute of CPA’s and scholastic honorary organization Beta Alpha Psi.

BriersCPA  is located at 3301 Bonita Beach Rd., Suite 306 in Bonita Springs, FL 34134. For more information, please call 239-390-8882.

BriersCPA is a full-service CPA firm located at 3301 Bonita Springs Road, Bonita Springs, FL 34134. For more information, visit www.brierscpa.com or call BriersCPA at 239.390.8882. Alvarez, Sambol, & Winthrop, P.A. is a full-service law firm, with offices in Orlando, Miami and Bonita Springs, FL. For more information, visit www.aswpa.com or call 888.877.7488 or 239-931-9500.

Short sales and foreclosures were all too common in Southwest Florida in 2009. So many people have been affected. They’ve lost homes and had to downsize their expectations and dreams.

Those who lost jobs may have fallen behind in their mortgage payments, prompting their lenders to take action. Others sold a home through a bank approved short sale because the market value of their property had dropped below the amount owed. The credit markets collapsed in late 2008 and many lenders turned a deaf ear to mortgagees who tried to refinance their loans and stay in their homes, while others more fortunate were able to get a loan modification to be able to stay in their homes.

The arrival of 2010 meant a glad farewell to 2009. It was time to start over. People have been forced to reimagine their future. Some of the more fortunate have found new jobs elsewhere and left the area to start rebuilding their lives. Others had fewer choices, and charitable organizations have struggled under an avalanche of those who for the first time found themselves in need of food, clothing, and shelter.

Those who were foreclosed upon or sold property in a short sale are now opening their mailboxes to find 1099-C forms from their former mortgage companies.

The IRS considers canceled or forgiven debt as “windfall income,” even though the homeowner didn’t see a penny in their pockets. For some, the news is grim —they’ll have to pay what could be thousands of dollars in 2009 taxes on the debt forgiven. For many, however, there is likely an exclusion that will result in no taxes being owed on the forgiven debt.

Local CPAs such as Mike and Tom Briers of BriersCPA are trying to help those just receiving their 1099-C forms to determine on which side of the tax line they will fall. They just launched a new Web site at www.BriersCPA.info to offer helpful guidelines to know how to proceed. “The news is not all bad,” said Mike Briers. “But tax filers need to know their options.”

While the tax laws and exceptions are complex and confusing, BriersCPA provides some basic information that tax filers should know when talking to their tax preparers. Even well meaning, but uninformed, tax preparers could cost filers lot of money in unnecessary income taxes if they don’t ask the right questions.

Generally, canceled or forgiven debt or a loan modification (change to the terms of a loan) will result in 1099-C taxable income. However, there are very specific exclusions. Generally, if an exclusion applies to the situation, the tax filer will not owe income taxes on the canceled debt.

The most common exclusion is for a home that was a primary residence. If the loan was to buy, build or substantially improve a principal residence, and the canceled debt was less than $2 million for married filers, they will qualify for the exclusion and will not be taxed on the forgiven debt. However, those who experienced a short sale, loan modification or foreclosure on a second home or investment property are not exempted under this provision and will be taxed on the cancelation of debt provisions, unless another exclusion applies.

Perhaps you were deemed insolvent. If the liabilities you owed were larger than your assets immediately before the cancelation of debt occurred, you do not need to include the 1099-C income in your reportable income.

Many Southwest Florida property owners were forced to declare bankruptcy. Debt canceled in a bankruptcy case is also not included in taxable income.

Preparing a tax return with 1099-C income can be challenging—and reporting exclusions even more difficult. It is wise to consult with a CPA to be sure you get good advice when filing your taxes. Be certain your tax preparer is especially knowledgeable in the nuances of 1099-C income, or you could end up paying too much in income taxes. Most importantly, it is essential that you understand the facts of your individual transaction to avoid filing your 2009 income tax return incorrectly. Getting bad advice or trying to file your own taxes could result in paying more than you are legally liable for paying.

September 4, 2009 – from The News-Press, Ft. Myers, FL

A father and son are living out a dream and finding success with their small, Bonita Springs-based accounting firm.

BriersCPA was founded roughly two years ago by Tom and Mike Briers. Both men are Certified Public Accountants whose backgrounds include overseas stints as managers for American companies.

The company provides accounting and financial reporting, bookkeeping, financial planning, business growth planning and a host of other services to its clients. It logged gross revenues of about $175,000 in 2008, its first full year of operation. Gross revenues of roughly $250,000 are expected for this year.

Mike Briers, 39, was in the midst of a two-year assignment in Shanghai as Asian Corporate Controller for Springs Global when he began thinking about his next move. Working at the bed- and bathware company’s Charlotte headquarters was one option, but not one that truly appealed to him. “I thought, ‘You know what, there’s probably something better I can do,’” he said. “I thought, ‘Hey, let’s move to Florida and start a business, so we did.”

Before Mike Briers’ return to the States, he and his dad had already decided to start their own firm. “It seemed like it was a great opportunity to work together,” Mike Briers said. “We love what what we do. How great is it that we get to work together in such a wonderful place? Maybe we can build something together and maybe pass it along to the next generation at some point.”

When he and his wife Chandra arrived in Fort Myers in 2007, they had a support system in place in his parents, Tom and Joy of Bonita Springs, as well as his sister Rachel Bell and her family.

“This is a dream come true,” said Tom Briers, 62. “I never, never dreamed that at this stage of my career, that I’d have a chance to come together with Mike and create something.”

People and companies with roots in Southwest Florida comprise the bulk of the firm’s client list. However, the Brierses also have clients in North Carolina, Virginia, West Virginia and other states.

Gulf States Electric in Naples has been a customer since November 2007, using BriersCPA for its accounting work, tax returns and more. “Mike’s a very personable guy,” said Gulf States President Marty Rogers. “He’s done a very professional job for me with any task I’ve given him.”

Mike Briers said he felt some trepidation about starting a new business while the economy sagged, but “I felt there was more risk in just jumping back into the corporate world.” He worried that going the corporate route could lead to becoming too comfortable to risk entrepreneurship.

The Brierses have been able to build their business through contacts Tom Briers has made since moving here full time in 2004 and those Mike has made through several networking groups and the chambers of commerce he’s joined. Positive word of mouth has also helped, they said. Dr. Brian Olitsky of Smile Design Enterprises in Naples and Smile Design by Dr. Brian M. Olitsky in Bonita Springs became a customer in 2007.

“They’re very prompt, they’re very detail oriented,” Olitsky said. “I get all the big accounting firm knowledge, with a small, family-business feel. It was really a good fit for my business because my practice is a very small practice with lots of personal attention, which is exactly what the Brierses give.”

Tom Briers said that that customer loyalty is much appreciated. “We love our clients,” Tom Briers said. “Our clients are what’s helped us grow. We had experience and we had credentials, but without them, we’d just be people with credentials but nothing to do.”

Read entire story at gulfshorebusiness.com

July 16, 2009 – There is no recession in the hopes and dreams of this year’s winners of The Review’s annual 40 Under 40 contest. From a group of five young members of an accounting firm to an eclectic mix of young business people, they will impact the Gulf Coast’s future.

As controller of Asian operations for South Carolina-based textile firm Springs Industries, Michael Briers oversaw the shipments of $500 million worth of product to the U.S.

Briers, now 39, was promoted to the Shanghai posting in 2005 and he was well on his way up the global corporate ladder in his accounting profession. Armed with a masters’ degree in tax accounting, Briers became an expert in international accounting. “The opportunity to go to Asia was huge,” he says.

But as the global economy slowed and the American textile industry faltered, Briers returned to the U.S. in 2007 like many other expatriates and wondered what was next. He turned down an offer from Caterpillar in part because of the manufacturing slowdown and because he’d be based in Peoria, Ill.

So Briers moved to Bonita Springs instead, where his parents and sister already lived. Together with his father, Thomas Briers, the younger Briers opened his own accounting firm called BriersCPA in August 2007. The elder Briers is an accountant and financial planner.

Today, the firm has four employees and $200,000 in annual billings with over 150 clients. “Finding clients has been easier than I thought,” says Briers. “I underestimated the number of clients who needed more sophisticated work.”

Briers has built his client list by networking at business events and getting referrals from existing clients. He presents himself as the less expensive alternative to hiring someone. “It’s cheaper to hire me than a controller,” he says.
Tax returns generally cost $500 to $750, though complex returns can be more costly. And other accounting functions can cost $6,000 to $20,000.

Of course the clients Briers has today aren’t near the size of the company he used to work for. About 70% of people in Lee County work for companies with fewer than 10 employees, Briers says. “I like these guys a lot more than the corporate world,” he says. “They’re the bread and butter of the economy.”

As an accountant, Briers has special insight into the economic health of businesses in the Lee County area. His verdict: “Those who are still around are going to get through it.” About 10% of his clients are struggling, in particular restaurants and other businesses in the hospitality industry. Surprisingly, auto-repair shops are also having a rough time because drivers are putting off repairs.

Meanwhile, Briers says service companies are doing relatively well, in part because many competitors went out of business in 2008. Title companies are busy with the increase in residential real estate transactions and so are pest-control companies and other home-service businesses.

Despite spending most of his career in the corporate world, Briers has had an entrepreneurial spirit since childhood. As a young man growing up in West Virginia, he operated a profitable car-washing business for 20 neighbors in the summertime. For $125 per car, he promised to wash and wax cars every other week for the entire summer. He collected half the money up front and the other half when summer ended. In college, he bought pepper spray bottles for $1 a bottle and resold them to sorority sisters for $10 each.

Despite the downturn, Briers says there’s less competition from large accounting firms in Lee County because it’s not home to many large companies. If they want to make a good living, most people have to start their own company. “Everyone is so entrepreneurially driven down here,” Briers says.

Briers has expansion plans of his own. “I would love to go to Lauderdale,” he says. In the meantime, he plans to grow the Bonita Springs business and enjoy golf and the beach.