Accounting & Auditing

Due to the new regulations under 408(b)(2), plan sponsors/fiduciaries are required to have updated contracts with their service providers that are in line with the new regulations by July 1, 2012 for any services where fees of $1,000 or greater are charged. 

If the signed contracts are not in place than the fees paid to these service providers will be considered prohibited transactions under the plan and are required to be disclosed in the supplemental schedules of the plan’s audited financial...

In the past week I’ve received three articles from colleagues related to benefit plan sponsors receiving fines.  The majority of these articles seem focused on fiduciaries not taking responsibility over plan operations or the lack of documentation of fiduciaries’ consideration when making decisions that affect the plan.  So, I thought I’d take a moment to summarize some of the requirements shown on the Department of Labor (DOL) website in relation to fiduciary responsibility.  Please remember,...

One of the most common surgeries affecting our aging population is the hip replacement. However, from reading the news lately it seems like a risky fix for someone’s aches and pains. Especially when it comes to all-metal hips. Over the past year the FDA has had over 5,000 complaints related to all-metal hip replacements, the devices have a 12 to 13% failure rate, and corporations selling these devices have been issuing voluntary recalls and experienced lawsuits. 

Part of the problem may stem...

Once in a while, a topic comes along that allows legislators to unite, even across partisan lines. The attempt to repeal the Medical Device Tax seems to be one example of this phenomenon.

The Medical Device Tax was enacted as part of Obama’s Patient Protection and Affordable Care Act in March of 2010, in theory, as a way to help offset the cost of the overall reform. However, there is concern that the 2.3% tax on medical device companies will instead have very different results. There are fears...

The Medical Device Tax was enacted as part of the Patient Protection and Affordable Care Act as a way to help offset the cost of the overall bill. Originally, medical device manufacturers and importers with sales over $5 million would have paid a non-deductible annual fee. After several amendments, medical device manufacturers will now pay a 2.3% excise tax, which will be deductible, on sales of taxable medical devices starting in 2013.

What qualifies as a taxable medical device?

Currently, a...

The research credit, often referred to as the R&D credit, that has been available to taxpayers since 1981 has recently been extended two years to December 31, 2011.  While this extension is beneficial for the interim, many associations and organizations have been pushing for a permanent research credit to be enacted. 

The research credit (in its basic form) allows taxpayers a 20% credit for qualified research expenses that exceeds their base amount.  The base amount is calculated by taking...

At the recent “BioOhio Annual Conference: Innovation Road Show,” Susan Pucie of the NHLBI discussed the SBIR and STTR eligibility requirements. Below is an overview of the STTR eligibility requirements (click here for an overview of SBIR eligibility requirements):

3 Phase Program for STTR (grants only)

Phase 1 - Feasibility Study

• Average award period – 1 year
• Average costs - $100,000 

Phase 2 - Research and Development

• Average award period - 2 years
• Average costs - $750,000 
• (Fast Track - Combines...

I am a CPA attempting to take a walk in the shoes of a scientist/business owner. So when I recently attended the “BioOhio Annual Conference: Innovation Road Show” to learn more about the Biotech and Life Sciences industries, one of the areas of discussion that I found to be most beneficial was the SBIR and STTR eligibility requirements that was presented by Susan Pucie of the NHLBI.   I thought, here is something of value to my clients. An overview of the presentation that took place and the key...