Year-End Employment Reporting and Upcoming Changes

With 2016 coming to a rapid close and 2017 quickly approaching, it is crucial to keep in mind some of the changes to take affect pertaining to labor-related issues and year-end employment reporting.

•As you may recall, on April 4, 2016, New York Governor Andrew Cuomo signed a law which will gradually increase the minimum wage in New York State from the current rate of $9/hour to $15/hour by the end of 2018 for New York City and 2021 for the surrounding counties. Beginning on December 31, 2016, minimum wage is set to increase to the following:
 NYC – Big Employers (of 11 or more) – $11.00
 NYC – Small Employers (10 or less) – $10.50
 Long Island and Westchester – $10.00
 Greater New York State – $9.70

•The US Department of Labor had announced a new rule that would extend overtime protection to millions of workers who are currently exempt, including employees who meet certain tests regarding their job duties and earn less than $455 per week. As previously reported, these new overtime pay rules were suspended on November 22nd. The judge did not make a final ruling on the case, and has only issued a temporary injunction. Below lists the anticipated changes that were originally to take effect on December 1, 2016. We will keep you updated on future developments in the law.

While the job requirements have not changed, the salary level required for the exemption would have been increased to $913 a week. This is an annual change in wages from $23,660 to $47,476.

In addition, the new rule would increase the threshold salary level for highly-compensated workers. Under the previous rule, such workers were exempt from overtime pay if their annual compensation was under $100,000 and they performed certain duties. The new threshold would increase to $134,000 per year while the duties remain the same.

•The IRS has not changed the mandates for reporting health benefits on Form W-2. Employers with more than 250 W-2 employees are still required to report the cost of coverage for employer-sponsored group health plans in Box 12 of Form W-2 using code DD.

•Any fringe benefits provided to an employee are subject to employment taxes and must be included in the recipient’s taxable wages in Box 1 of Form W-2. This may include group term life insurance benefits over $50,000, employee use of a company automobile and medical insurance for an S Corp shareholder with ownership of more than 2%.

•Employers pay both Federal (FUTA) and State (SUI) Unemployment Insurance taxes on wages paid. The FUTA tax rate is 6.0% for 2016, however, employers receive an offsetting credit of 5.4% for payment of state UI taxes. This makes the effective FUTA rate 0.6%. The State UI wage base is the portion of remuneration subject to contribution. On January 1, 2017, the NYS UI wage base will increase from $10,700 to $10,900.

•Employers are still required to have a Form I-9 for each newly hired individual for employment in the United States. This form is used to verify the identity and employment authorization of the employee. It is to be completed by both the employee and the employer. U.S. Citizenship and Immigration Services (USCIS) have released a new version of Form I-9 that must be used beginning January 22, 2017. Notable changes on the newly revised form include:
 Easier to complete on a computer including drop-down lists
 Addition of prompts to ensure information is entered correctly
 Ability to enter multiple preparers and translators
 A dedicated area for including additional information
 A supplemental page for the preparer/translator

•Form 1095-C for employer provided health insurance is required to be provided to employees by January 31, 2017, the same day Forms W-2 and 1099 are required to
be distributed.

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FOR IMMEDIATE RELEASE: Fuller Lowenberg & Co. CPAs announces Lynn M. Giugliano, CPA as partner

Lynn headshot low resolution
Fuller Lowenberg & Co., CPAs, P.C. is proud to announce that Lynn M. Giugliano, CPA has become partner of the firm effective January 1, 2017. Lynn focuses her practice areas in closely held businesses and not-for-profits.

Lynn started at the firm in 2000 as the office administrator. Coming from a family of medical professionals, Lynn was encouraged to start her education in the nursing field. While working in the medical field, at her prior position, she was forced to choose between falsifying a document or being fired; she chose the latter. Looking for a new job, she answered a help wanted ad at Fuller Lowenberg & Co. CPAs (FL). That decision changed her professional life.

Having worked for a couple of years at FL and showing an analytical aptitude for numbers, partner Howard Fuller suggested she go back to college for accounting. Using that encouragement, Lynn went back to school, part-time, at Suffolk County Community College.

While studying for her accounting degree, Lynn still had a desire to be involved in the medical field and spent 5 years as a volunteer EMT for Commack Volunteer Ambulance Corps. While a member, she earned the “Most Valuable New Member” award. As work, school and life became a challenge to balance, Lynn resigned as an EMT and committed herself to earning her accounting degree.

As Lynn progressed in her studies, she was given responsibilities as a bookkeeper, then staff accountant. She completed her education at SUNY Old Westbury and passed the CPA exam in 2008. For the past several years, she was a audit manager at FL.

Having a background in volunteerism, she saw an opportunity to combine both the love of community service and accounting. In order to grow the not-for-profit portion of the firm, she received her Certificate in Not-for-Profit Accounting from NYU. She believes that helping and guiding not-for-profits is one more avenue to servicing our communities.

Lynn is a member of the AICPA, NY Society of CPAs, ncCPAp, Society of Financial Service Professionals, and Association of Fundraising Professionals among other memberships.

The firm’s continued growth is a reflection of the committed employees of the firm and nurturing atmosphere provided at Fuller Lowenberg & Co. CPAs P.C. In 2015, the Firm named Matthew Doughty, CPA as a partner. Matt was originally hired as an intern for the firm ten years earlier. Many other associates have grown their careers at FL and continue to do so, as many have been with the firm for over 10, 20 and 25+ years.

Fuller Lowenberg & Co., CPAs P.C. was founded in 1990 by Howard Fuller and Thomas Lowenberg. A full service accounting firm located in Hauppauge, New York, the firm consists of its founding partners and approximately 18 professional and support staff. Fuller Lowenberg & Co., CPAs, P.C. is a member of the New York State Society of CPAs, the American Institute of Certified Public Accountants, and the team stays active in several other professional associations. We are also active participants in the Peer Review Program administered by the AICPA.

For over 25 years, Fuller Lowenberg & Co., CPAs P.C. has provided accounting and tax services and its experience and foresight has helped to grow both small and medium sized businesses in the Tri-State area. The Firm’s growth is attributable to the valuable services we provide and the favorable recommendations from our existing client base. The Firm strives to build a team of experts in many areas of business and our accounting team consists of self-sufficient, highly qualified, and specialized individuals. More than half of our team members have been with the Firm for over 10 years. Since we pride ourselves on such little turnover, we can provide knowledgeable, experienced professionals at affordable prices to the businesses we serve.

Fuller Lowenberg & Co., CPAs, P.C. makes every effort to stay up-to-date on the latest accounting trends and news, and the ever-changing complicated tax laws and regulations. Our team attends continuing education classes on a consistent basis, and we support all educational interests. Our office is also green, paperless, and we work with the top accounting software and computer programs available.

We look forward to continued growth and being able to serve all of your accounting, tax and business advisory needs.

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Part Time Office Clerk Needed

Fuller Lowenberg & Co., a growing CPA Firm located in Hauppauge, is looking for a part time office clerk for 4 days a week. This is a permanent year-round position offering flexible work hours. We have a professional and friendly atmosphere. Responsibilities include, but are not limited to: data entry, typing, filing, copying, answering phones. Knowledge of Microsoft Word and Excel are a must. Please send cover letter and resume to:

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