The Newark Star Ledger recently turned to Pamela Avraham of Urbach and Avraham, CPAs for her take on the effects of the 2012 FUTA increase for NJ employers . This FUTA increase is now payable in Jan. 2013 and came as a surprise to many employers. Pamela was quoted in the January 20, 2013 edition, describing the challenge that many staffing agencies face due to the increase. Urbach & Avraham is especially attuned to concerns regarding the FUTA increase, as we service many staffing agencies and small businesses. These firms are going to be impacted more significantly, as they tend to have a larger number of low wage employees.
MEDICAL PRACTICES
Pamela Avraham Achieves Fraud Examiner Certification
Congratulations to Partner Pamela Avraham on her well-deserved certification as a Certified Fraud Examiner (CFE). It comes as no surprise that Pamela passed all four sections of the CFE exam on the first sitting, as she has used her forensic skills in preventing and detecting fraud for over 25 years. Clients who have gained from her expertise are from a wide range of industries, including medical and health care practices and staffing agencies.
Pamela has also applied her forensic accounting abilities in the reconstruction of books and records for fiduciaries, and has frequently prepared court accountings for executors, trustees and guardians. Her unique expertise and experience is reflected in the outstanding success of the U&A forensic team.
Urbach & Avraham Welcomes Partner Aryeh Levy
Urbach & Avraham, CPAs would like to welcome new partner Aryeh Levy. Aryeh brings with him over 35 years of public accounting experience, as well as a sterling reputation. His specialties include audits, reviews, compilations and other attest engagements including personal financial statements. Those benefiting from his expertise have included, among others, service, distribution, and manufacturing companies, medical practices, health care firms, real estate ventures (including HUD projects), and retirement planners. Aryeh also has extensive experience in tax planning, and return preparation. He handles multi-state corporate tax issues as well as complex individual income taxes including taxation of individuals and businesses operating overseas. He regularly consults on various accounting and tax issues with accounting firms around the world.
Although Aryeh just recently joined the U&A team he is no stranger to us. Jeff and Pamela have known him, both personally and professionally, for over 30 years. We are most fortunate to have him on board.Article Sponsored Find something for everyone in our collection of colourful https://www.swisswatch.is bright and stylish socks. Buy individually or in bundles to add color to your sock drawer!
The Physician “Megagroup”: Pros and Cons
The constantly evolving healthcare industry has caused many physicians to rethink their practice options. The most common options available today are to stay as is, become an employee of a hospital or healthcare network, or sell the practice to a hospital or healthcare network. There is another option which maybe the best choice for many medical practices: the “megagroup”.
A “megagroup” comprises several independent medical practices (referred to as divisions) that join together and become one larger practice. It can be a single specialty or multispecialty practice, usually staffing at least 30 to 40 physicians. As with most big decisions, there are pros and cons to consider.
A major advantage to joining a “megagroup,” rather than aligning with a hospital or healthcare network, is that you retain a high degree of autonomy while still maintaining, and very often improving, quality of care. It also can improve a physician’s bottom line, as many administrative positions (e.g billing, managed care contracting, human resources, purchasing, information technology, accounting) are centralized in a central business office (CBO). Other advantages include an increased likelihood of recruiting and retaining top physicians, greater access to information technology (IT), improved ability to deal with regulatory pressures, and greater access to bank financing.
There are a number of risks to consider as well. There is typically a large initial capital investment, and joining practices links the physician to the group debt of the “megagroup”. There is also a very considerable time commitment on the part of the founding partners in getting the operation going and keeping it afloat. Finally, if it is unsuccessful, the costs associated with member withdrawal (or even worse, an “unwinding” of the entire “megagroup”) are significant.
Is joining a “megagroup” the right decision for your practice? Call Urbach & Avraham today and let our experienced team of CPAs guide your medical practice in the direction that best suits your needs and aspirations.
IRS Offers Relief to Victims of Hurricane Sandy
In the aftermath of Hurricane Sandy, the IRS have taken action to aid those affected by the storm. It has postponed various tax filing and payment deadlines that occurred starting in late October to February 1, 2013. These include:
- Fourth quarter individual estimated tax payment
- Payroll and excise tax returns
- Tax-exempt organizations required to file Form 990 with a deadline between October 31, 2012 and January 31, 2013
In addition, the IRS is waiving failure-to-deposit penalties for federal payroll and excise tax deposits normally due on or after the disaster area start date. Taxpayers now have until November 26, 2012 to remit and avoid penalties.
Thus far, IRS filing and payment relief applies to Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean, Somerset, and Union counties in New Jersey. To view included counties in New York and Connecticut or for more information click here: IRS Tax Relief for NJ, NY & CT Hurricane Sandy Victims
Medical Practice adding a Co-shareholder? Caution!
If you are considering the addition of a co-shareholder to your medical or other professional practice, it may not be as simple as you think. While you may not mind sharing the profits with the new partner, allowing him to have input on business decisions affecting your practice may be quite another matter. As a result of a New Jersey statute long overdue for an amendment, you may be forced to hand over the controls to your new partner.
The law governing professional service corporations (N.J.S. 14A:17-6) specifies that where an entity has two shareholders, both “shall be” the directors. The terms of the statute appear to require that not only must the shareholder be a second director, but that he becomes a “minority partner” as well, which means that he will have half of the control regardless of his percentage of shareholdings. To illustrate, let’s assume you add John Smith as a 10% shareholder of your practice. He will be entitled to a 50% say in your practice’s business decisions, regardless of the fact that he only gets 10% of profits. [Read more…] about Medical Practice adding a Co-shareholder? Caution!