By Rachel Rabindran, Accounting Consultant
In April, 2018 the California Supreme Court issued their long-awaited ruling in a class action lawsuit concerning delivery drivers. The court unanimously ruled in Dynamex Operations West, Inc. v. Superior Court of Los Angeles County that a worker will be considered an employee of the hiring entity unless the hiring entity can establish all three of the following factors (also known as the “ABC test” to identify independent contractors): (more…)
By Jeff Faust, CVA, Director of Valuation Services
ASL Business Valuation Services
First, a little background, 409A is an IRS Code section that requires companies to grant stock options at Fair Market Value (FMV), meaning no discounts anymore. In order for a company to prove they granted stock options at FMV, they’ll need to follow the valuation rules surrounding 409A. (more…)
By Deepa Bhat, CPA, Audit Principal
ASL Construction Group
It is a well-known fact that best in class contractors prepare a work in progress (WIP) schedule on a regular basis. Not only does this practice allow the users of the financials, such as lenders and bonding companies, identify early warning signs, it enables contractors to better measure their progress on jobs and be proactive in seeking change orders and contract revisions. As a constant reviewer of contractor financials, I have found the following most common red flags on WIP schedules that are worth mentioning: (more…)
By Jeff Faust, CVA, Director of Valuation Services
ASL Business Valuation Services
With the signing of the Tax Cuts and Jobs Act (TCJA) in December 2017, valuation analysts have been tasked with incorporating the changes to the tax law into their analysis. Changes, such as the lowering of corporate tax rates and restrictions on interest deductibility, must be factored into valuation analysis to capture the effects of the TCJA on company value. When valuing a US company, valuation analysts must now consider the following: (more…)
By Abe Livchitz, CPA, Senior Tax Manager
ASL Construction Group
In October, 2017, Gov. Brown signed Assembly Bill 1701 modifying the California Labor Code. The bill requires contractors to assume liability for any unpaid wages or fringe benefits owed to employees of their subcontractors. This provision applies to all nonpublic construction contracts entered into on or after January 1, 2018. The new law requires diligent contractors to now monitor the payroll functions of their subcontractors and any subcontractors used by their subcontractors. (more…)
By Erika Diebert, CPA, Tax Manager
ASL Tax Group
The U.S. Supreme court recently made a landmark decision in South Dakota v. Wayfair. The case has changed the rules on the taxability of internet sales. The court decided for South Dakota and allowed the state’s ability to tax internet sales of consumers who lack physical presence in South Dakota. Since 1992, the Supreme Court decision in Quill Corp v. North Dakota has been the standard on when states can impose sales tax on retailers. The Quill decision required some minimum physical presence of property or employees before states could impose sales tax. As technology has advanced and consumers have turned to the internet for retail activities, the Quill standard has imposed a barrier on the individual states’ ability to tax sales activities occurring within their borders. Many states have reacted by imposing new standards in an effort to circumvent the Quill decision. Some of these standards include cookie nexus or click through nexus that put simply, create the minimum presence needed to impose sales tax through defining the presence of technology as physical presence of property. Up until now the Supreme Court has declined to hear a case involving the state’s new imposition of these nexus standards that do not follow the Quill decision, until now. (more…)
By Michael Podesta, CPA, Audit Manager
ASL Emerging Business Group
Early-stage companies have several options when it comes to obtaining seed round funding; however, selecting the best vehicle for your company involves weighing the benefits and downsides of each option. Three popular debt-based financing vehicles are convertible debt, SAFE (Simple Agreement for Future Equity) agreements, and KISS (Keep It Simple Securities) agreements. (more…)
By Jeff Faust, CVA, Director of Valuation Services
ASL Business Valuation Services
Company owners face many decisions when it comes time to transition responsibilities and ultimately ownership to the next generation. For those owners who wish to sell their shares gradually and transition out of their responsibilities over a period of years, an Employee Stock Ownership Plan (ESOP) might be the right fit. An ESOP is a qualified defined contribution employee benefit plan that primarily holds the employer company’s stock. An ESOP functions similarly to a stock bonus plan that provides a retirement benefit to employees in the form of the company’s stock. As a “qualified” plan, an ESOP is established by the employer for the benefit of the company’s employees and qualifies for certain tax benefits, both for the company and the selling owners. (more…)
By Patrick Ngai, CPA, Audit Manager
ASL Renewable Energy Group
Welcome to Part Two of our Introduction to Renewables. Last time (Introduction to Renewables – Part One), we discussed what exactly a renewable certificate is and how it is used to address greenhouse gas (GHG) emissions. This time around, we will talk about carbon offsets – the other, more direct method to address GHG emission. (more…)
