Andrew Jones

KatzAbosch, one of the Mid-Atlantic Region’s leading certified public accounting and consulting firms, has expanded its services to the Federal Government and Government Contractors by launching a new wholly-owned subsidiary, KatzAbosch Consulting LLC.  This new vertical is led by Andrew Jones and operated by KatzAbosch, P.A..

KatzAbosch Consulting LLC will continue to provide the same high quality of service expected by its clients with a broadened focus on Financial, IT and Workforce consulting as well as FAR & CAS compliance.

Andrew Jones has over twenty years experience in financial and business consulting. He is a Chartered Accountant (ACA), Certified Information Systems Auditor (CISA) and a Certified Government Financial Manager (CGFM).  Previous to joining KatzAbosch Consulting LLC, Jones started Manpower Public Sector Incorporated, where he was Vice President and Managing Partner. Prior to his employment with Manpower, Jones led the Public Sector practice for Unisys in the United Kingdom and was an equity partner at Arthur Andersen, LLP. In this capacity, Jones led the e-business and Customer Relationship Management (CRM) practice for the Government Vertical and was also the North American head of the Government Industry Program.  Jones has worked with many governments globally on privatization, including but not limited to the United Kingdom, United States of America, Saudi Arabia, Kuwait, Russia, Thailand, Egypt, Lithuania and Jordan. Jones has testified as an expert in front of congress on two occasions related to privatization and outsourcing. Prior to joining corporate finance, Jones was an audit manager in the financial markets group in London and Chicago with a focus on the banking sector.

When asked why he wanted to join KatzAbosch Consulting LLC, Jones replied, “It was always a goal to return to a professional accounting firm with a strong culture and leadership and to have the opportunity to drive a new segment in providing professional services to the federal government.”

The SALT Shaker

DC tax law changes for 2011 and 2012

Businesses:

• Mandatory unitary combined reporting effective for tax years beginning on or after December 31, 2010.
• For tax year 2011 business franchise taxes apportionment is changed to property, payroll and double weighted sales, previously the law provided for equal weighted 3-factor formula.
• Minimum tax increased to $250 for corporations with gross receipts under $1 million, increased to $1000 if gross receipts greater than $1 million.

Individuals:

• An additional tax bracket of 8.95% for taxpayers with DC taxable income over $350,000 has been added, applies to estates and trusts also.
• New limitations apply to itemized deductions for DC taxable income of $200,000; deductions are to be reduced by 5% of the amount over $200,000. This doesn’t include medical, investment interest or casualty losses.
• Effective 01/01/12 employers are to remove standard deduction from withholding calculation.
• DC has repealed its exemption for the interest on out of state tax exempt bonds, effective for bonds acquired after 12/31/11. Except for bonds issued by the District of Columbia or the Metropolitan Washington Regional Airport Authority, income from state or municipal bonds acquired on or after 1/1/12 is taxable for DC income tax purposes. State or municipal bond income is not taxable in DC if: They were acquired before 01/01/12 and exempt by federal law.
• Effective 01/01/12 withholding of DC income taxes at the highest marginal rate from distributions from retirement accounts to DC residents if there is an IRS withholding requirement.
• For both individuals and franchise taxes the safe harbor requirement has been increased to 110% for 2012.

Other:

• Sales tax rate increase on parking from 12% to 18% and packaged good liquor from 9% to 10%.
• Addition  of security services to the sales tax base.
• The sales tax rate decrease scheduled for 10/01/12 has been cancelled.

Remember the DC individual income tax only applies to residents, non-resident individuals are not subject to the individual income tax.

Please contact Amanda Pippin if you have any question regarding DC tax law.

The SALT Shaker is prepared by Amanda Pippin

KatzAbosch was recently named as one of the 2011 Best Accounting Firms to Work For. The annual list of “Best Accounting Firms” was created by Accounting Today and Best Companies Group. This list is committed to identifying and recognizing the best accounting industry employers across the nation. This is the third consecutive year KatzAbosch has earned this distinction.

Accounting firms from across the country entered the two-part survey process to determine the Best Accounting Firms to Work For. The first part consisted of evaluating each nominated firm’s workplace policies, practices, philosophy, systems and demographics. The second part consisted of an employee survey to measure the employee experience. The combined scores determined the top firms and the final ranking. Best Companies Group managed the overall registration, survey and analysis process and determined the final rankings.

This survey and award program was designed to identify, recognize and honor the best places of employment in the accounting industry, benefiting the nation’s economy, its workforce and businesses. The Best Accounting Firms to Work For list is made up of a total of 100 companies, split into three groups: 50 small-sized companies (15-49 employees), 45 medium-sized companies (50-249 employees) and 5 large-sized companies (more than 250 employees). KatzAbosch has been named one of the Best Accounting Firms to Work For in the medium category.

KatzAbosch is extremely honored to have received this distinction for a third consecutive year. It is incredibly rewarding to know that our personnel spoke so highly of the firm in the voting process. This is truly a testament to our enduring commitment policy to provide the necessary support, resources and guidance that our staff needs to excel and succeed.

The ranking of the 4^th annual Best Accounting Firms to Work For was unveiled at an awards ceremony sponsored by ADP during Accounting Today’s 2^nd Annual Growth & Profitability Summit on October 25^th – October 27^th at the Bellagio Hotel & Casino in Las Vegas. The list-making firms will also be published in the December issue of Accounting Today.

KatzAbosch recently received the 2011 Top 75 Workplaces Award. The annual recognition by The Baltimore Sun of Top Workplaces was created to showcase the very best organizations, evaluated purely on the responses to an employee survey. The surveys were evaluated by Workplace Dynamics LLC, a company that believes business can and should make a positive impact on the individuals, organizations and communities we work in. Top Workplaces leads the way in measuring the health of US companies based upon employee opinions.

Top Workplaces is all about a better way of doing business. Extensive research by Workplace Dynamics has shown that employees want to be part of something meaningful, where they can contribute and give their best. This means a Top Workplaces company can be more innovative, operate more ethically and serve clients better.

This tried and tested survey has been used by thousands of organizations to evaluate their workplace. The survey is used to elicit the opinions of employees on their workplace based on 24 extensively researched questions. Workplace Dynamics says that using those 24 questions provides them with in-depth results that they can compare across organizations and use to compile their rankings. The survey also asks for demographic information as well as comments. Companies automatically receive a summary results report, providing details on their strongest and weakest scoring areas.

KatzAbosch is extremely honored to have received this award. Top Workplaces is a vote of confidence and stamp of approval from our employees. This proves as a powerful indicator to shareholders, clients and the community that KatzAbosch has strong values along with good leadership and development opportunities for our staff.

The Baltimore Sun hosted a congratulatory event on November 30^th to celebrate the success of companies recognized as a Top Workplace and to commemorate them for creating positive work environments for their employees. On December 4^th, The Baltimore Sun published Baltimore’s Top Workplaces 2011 Magazine, which was distributed to 755,000 Sunday readers in the region. In addition to being listed in the print edition, companies that achieved the Top Workplaces standard also received their own company profile page online.

KatzAbosch has recently become a proud member of The Construction Industry CPAs/Consultants Association (CICPAC). CICPAC is a national association of CPA firms recognized by their respective markets for providing high quality financial and consulting services to over 6,000 construction entities.

Each firm is the exclusive member in its area and must demonstrate proficiency in construction industry services and a reputation for high-quality work and integrity. Through CICPAC’s educational programs and the continuous exchange of ideas and information, members of CICPAC are able to stay at the forefront of the construction industry, allowing them to provide up-to-date services to their clients.

When working with a CICPAC member, a contractor can receive the individual attention of one accomplished firm, combined with the unparalleled knowledge and resources of a nationwide network of construction industry specialists. Currently, KatzAbosch is the only firm to be a CICPAC member in the state of Maryland, and one of only 75 firms recognized nationally.

In addition to being a member of CICPAC, KatzAbosch’s own Claudia Wolter, shareholder and Co-Chair of the firm’s Accounting and Auditing Services Group, holds the designation of Certified Construction Auditor (CCA) from the National Association of Construction Auditors (NACA). This certification was created to enhance the control environment related to construction projects and help to instill confidence in employers and clients when they secure the services of a professional certified construction auditor. KatzAbosch also employees 6 of the less than 20 Certified Construction Industry Financial Professionals (CCIFPs) in the state of Maryland. This distinction shows individuals have met the highest standards of construction financial management. Earning the CCIFP designation entails a very rigorous exam and relatively few certified public accountants hold this professional distinction, only 700 in the entire United States.

KatzAbosch is tremendously honored to be accepted into CICPAC and looks forward to taking advantage of all the new resources that being a CICPAC member has to offer. In doing so, KatzAbosch will confidently continue to provide our clients the best up-to-date knowledge and service possible.

The SALT Shaker

One of the difficult compliance issues facing businesses today is what are the state tax implications when employees travel to other states for work. Under what circumstances should an employer withhold multiple states’ taxes from an employee’s wages when the employee is working in multiple states?  As with most tax issues the answer is it depends.

Here are some items to consider when a client asks how to handle an employee working out-of-state.

1. There is not a uniform answer to this question.  Some states have guidance on the topic, some states say one day triggers the withholding and some states do not provide any guidance.
2. Some factors to consider are:

• -Which state is the employee working in – New York is very aggressive in this area,
• -How long is the employee working in the other state, and
• -Is there a reciprocal agreement between the two states such as between Maryland and Pennsylvania (Maryland can’t tax the wages of Pennsylvania residents earned in Maryland).

3. For clients this is a business risk decision weighing the added administrative burden of establishing new state tax filings versus the problems of getting caught by the states.  The states are becoming more sophisticated with computer data bases that can detect this type of circumstance. The risk of detection is increasing and should be considered.
4. There is a bill in Congress on this subject that would standardize the rules. “Mobile Workforce State Income Tax Simplification Act of 2011 – H.R. 1864”  In this proposed legislation Congress sets the standard of more than 30 days in a 12 month period to trigger the other state’s right to tax the wages and force withholding. This is NOT final legislation at this time.
5. As to unemployment taxes – I talked with Dennis Morton, Director of Contributions for MD Unemployment, about the Mobile Workforce issue.  He told me the employee’s wages should not be reported to other states for “temporary” work projects.  What is temporary?  Again no clear answer. He did say he thought 30 days in the other state would be temporary and the wages should continue to be reported in MD. 

Please contact Andy Bareham if you have any questions regarding client employees that work in multiple states.

The SALT Shaker is prepared by Andy Bareham

Timonium, MD- KatzAbosch, one of the region’s leading certified public accounting, tax and consulting firms, is proud to announce that Claudia Wolter, a shareholder and Co-Chair of the firm’s Accounting and Auditing Services Group, has recently earned the Certified Construction Auditor (CCA) designation from the National Association of Construction Auditors (NACA).

The National Association of Construction Auditors was created to enhance the control environment related to construction projects. Providing the professional Certified Construction Auditor (CCA) designation helps to instill confidence in employers and clients when they secure the services of a professional construction auditor.

In addition, Wolter has a bachelor’s degree in Accounting from Towson University and is a Certified Public Accountant (CPA). She also holds the designation of Certified Construction Industry Financial Professional (CCIFP), a distinction that shows an individual has met the highest standards of construction financial management. There are less than 20 CCIFPs in the state of Maryland (of which, 6 are employed with KatzAbosch) and only 700 in the United States.

Timonium, MD- KatzAbosch, one of the region’s leading certified public accounting and consulting firms, is honored to announce that ten of the firm’s CPAs have been recognized as 2011 SmartCPAs by SmartCEO Magazine. KatzAbosch had more nominated Smart CPAs than any other firm. This is a huge honor, as it will be seen in the pages of SmartCEO Magazine by over 45,000 Mid-Atlantic CEOs.

KatzAbosch would like to recognize the following staff members as SmartCPAs:

Anita Sheckells, CPA, CCIFP; nominated by Betty Hines and previously honored as a SmartCPA in 2005.

Dina Bernstein, CPA; nominated by Susan Wise.

Jane Brewer, CPA, MST; nominated by Monyka Berrocosa and previously honored as a SmartCPA in 2006 and 2008.

Mark Cissell, CPA, CEO; nominated by Heidi Mattingly and previously honored as a SmartCPA in 2005.

Scott Mattingly, CPA, CFP; nominated by Melanie Epstein.

Melissa Pitchford, CPA; nominated by Jason Goldstein.

Mark Rapson, CPA; nominated by Jack Lewin.

Ryan Strum, CPA; nominated by James Senker.

Josh Sutherland, CPA; nominated by Dr. Margaret Wood.

Kent Thomas, CPA, CCIFP; nominated by Diane Dixon and previous honored as a SmartCPA in 2007.

KatzAbosch is extremely proud to have these extraordinary individuals on their team. The complete list of SmartCEO Magazine’s 2011 SmartCPAs are included in the September issue.

The SALT Shaker

Many states provide special access to state resources for tax practitioners in need of help with tax matters. These can be great resources for tax preparers and unlike the IRS, the states will generally talk with the preparer about a client’s circumstances without a power-of-attorney. Here is the contact information for the “local states.”

In Maryland the Tax Practitioner Hotline (410-260-7424) offers help with resolving problems, answers to questions or to confirm the dates and amounts of tax payments by clients.

The Pennsylvania Department of Revenue has created a dedicated email system for tax practitioners accessible through the online customer service center. https://revenue-pa.custhelp.com/app/home  Practitioners will have to select the “Submit a Question” tab and register to access the system. Once registered, questions can be submitted by selecting the “Submit a Question” tab again and selecting “Tax Practitioners.” The Department will respond to tax practitioner email within two business days. Practitioners can establish email threads, attach documents to email, and request a call-back from a representative, all using the practitioner email system.

The Virginia Tax Professionals Hotline at 804–367-9286 is open Monday through Friday, 8:30 a.m. to 4:30 p.m., to provide quick responses to inquiries about client accounts, or other tax questions.  For electronic filing information, early release forms, instructional materials, and special contact information, bookmark the Tax Professionals Page.  The Tax Policy Library offers a variety of information, from Tax Bulletins, to Legislative Summaries, to Rulings of the Commissioner. A great searchable resource for finding interpretations of Virginia tax law.

Delaware offers a live online chat service.  The service is available 8:30 to 4:00 Monday through Friday and can be accessed at http://portal.delaware.gov/help/taxes_0.shtml

The DC Office of Tax and Revenue has a Tax Practitioner Hotline (202-727-1435).

Please contact Andy Bareham if you need help resolving any state tax issues.

Many of Heather Bauer’s work friendships were cultivated on the run.

The KatzAbosch CPA is a member of the accounting firm’s run club. While running might be an individual exercise, Bauer said the camaraderie developed among club participants enhances her physical being and strengthens interoffice bonds.

“It not only keeps you healthy but you become more involved with coworkers,” Bauer said.

KatzAbosch’s commitment to a healthy work place includes building relationships among its employees. Those bonds add a level of support for employees seeking to live healthier lives.

“Having that support ­— when others are doing it — it makes you want to do it too,” Bauer said. KatzAbosch gets many of its healthy living program suggestions from employees. Perhaps that’s part of the reason shareholder tenure with the firm averages 22 years. It also sponsors weight watchers programs and it picks up a portion of its employees’ expenses.

For one hour each week, KatzAbosch employees do office yoga and can take a break from the grind with some stress-reducing, body-refreshing exercise.

Human Resources Director Lynda Runkles said in-house yoga sessions help employees reboot themselves physically and mentally. “We see more production,” she said.

Chief Operating Officer Arlene Ciroula says KatzAbosch hopes to build employee loyalty by crafting a corporate culture that promotes physical and mental fitness. Ciroula said the firm provides activities designed to help ease the mental strain on its employees.

“It requires optimizing one’s physical self,” Ciroula said. Healthier employees also translates into lower insurance premiums, she said.

Bauer likes KatzAbosch’s diversity of healthy living programs.

“There are different options,” she said. “It’s not just running or yoga. People can pick things they are more inclined to do.”

Yoga instructor Jan Luber said KatzAbosch employees benefit from stress-relieving midday yoga breaks.

“They are surprised how much better they feel and they are more alert getting back to work,” Luber said.

Baltimore, MD — On May 20, 2011, the Women in Associated Builders and Contractors (WABC), a committee of Associated Builders and Contractors Baltimore Chapter hosted their fourth annual

Women in ABC Career Empowerment Day at Catholic Charities’ My Sister’s Place. The six-hour workshop provided resources and training to twenty disadvantaged women who are enrolled in Catholic Charities’ Families That Work Program, a job-readiness program for temporary cash assistance recipients who are in their third trimester of pregnancy or who have given birth within the past six months.

Participants in the event were provided job interview training, workplace scenario workshops, resume writing skills, and an overview of careers in the construction industry. The event featured keynote speaker Carla Nelson, Director of the Mayor’s Office of Minority and Women-Owned Business Development, as well as professional support and presentations from participating WABC committee members.

“The event not only provided training needed for a career, but also business attire donated as a result of our clothing drive earlier this month,” says Anita Sheckells, who is the event chair and a shareholder with KatzAbosch, a certified public accounting firm which helped donate some of the clothing. “Part of the event included a shopping spree in two rooms filled with business clothing and accessories for women. There was one woman in particular who commented that she had never owned her own jewelry until now, let alone business clothing.”

Sheckells, a Certified Public Accountant (CPA) and Certified Construction Industry Financial Professional (CCIFP), has been the event chair for Career Empowerment Day for the past four years. As a member of WABC, her committee is particularly interested in grooming women for a career in construction, for which they offer the participants their own expertise.

“To have these professional women speak to our ladies is an awesome experience,” says Charleen Thomas-Christon, program manager of Families That Work. “The American Dream is the availability of jobs where one can earn a good living, have job security, and affordable healthcare for the family. This day provides information on a non-traditional career path for women that will enable them to realize the dream is attainable.”

Timonium, MD — KatzAbosch, a leading regional certified public accounting and consulting firm, has been selected by Network 2000, Inc., an association of women in leadership positions, as a Finalist for their annual Business 2000 Award.
Each year, Network 2000, recognizes Maryland companies that best exemplify its commitment to the recognition of women and promotion of women to key leadership roles. KatzAbosch was selected as one of the six finalists for the 2011 Business 2000 Award because it most clearly embodies an on-going, visible commitment to the advancement of women in all aspects of its business operations. This would include, but is not limited to the number of women in senior and executive management, the number of women on the company’s Board of Directors, employment practices and results that demonstrate that the advancement and support of women is a core value of the company’s operations.
The event acknowledging the Finalists, known as Network 2000’s Roadmap to the Boardroom, takes place the evening of March 22, 2011 at the College of Notre Dame of Maryland. For more information about Network 2000, please visit http://www.network2000md.org.

Timonium, MD — Regional certified public accounting, tax, and consulting firm KatzAbosch announces that Clem Mueller, CPA has been appointed to serve on the Maryland Peer Review Oversight Committee, established by the Maryland State Board of Public Accountancy to oversee the Maryland Association of Certified Public Accountants’ (MACPA) peer review program.
Mueller, a Shareholder with KatzAbosch, joined the firm in 1985. He oversees the firm’s Employee Benefit Audit and Not-For-Profit Audit Practices. Mueller is a member of the firm’s Auditing and Accounting Services Group where he serves as the Quality Control Director. He also serves as the designated representative for the firm’s membership with the AICPA Employee Benefit Plan Audit Quality Center. With more than 30 years experience in public accounting, he has experience in a variety of industries and has worked with not-for-profit organizations, closely-held businesses, manufacturers and distributors, federal government contractors, and land developers, among others.
Mueller is an active member of several professional and civic organizations including the American Institute of Certified Public Accountants (AICPA), Maryland Association of Certified Public Accountants (MACPA), and serves as the community resource board member for the Junior League of Baltimore.

Timonium, MD — Mark R. Cissell, CEO & President of KatzAbosch, has been selected for Leadership Maryland’s Class of 2011. Leadership Maryland, a non-profit organization whose program informs top-level executives about challenges and opportunities facing the state, annually selects 50 leaders based upon their career accomplishments, volunteer activities and personal commitment to help shape the future of Maryland. Cissell is the first executive from KatzAbosch invited to participate in this forum, marking yet another milestone for himself and the firm since he became CEO & President in 2009.
“I’m honored to have been selected. It will be a wonderful learning experience,” says Cissell. “The takeaway from this will not only benefit me, but also KatzAbsoch and ultimately our clientele.”
Class members will attend several intense sessions over the course of an 8 month program. Each session is focused on one of many critical issues affecting the state, such as economic development, education, health and human services, criminal and juvenile justice, environment, and multi-culturalism/diversity. More than 100 experts representing business, government, education, and the non-profit community will serve as panelists and guest speakers.
“The participants represent a broad spectrum of highly qualified executives from an extraordinary group of statewide applicants,” according to Nancy Minieri, president of Leadership Maryland. “After participating in a comprehensive range of experiences over the next year, these leaders will serve as important participants in the unified effort to shape Maryland’s future.” Leadership Maryland is one of 34 state leadership programs nationwide and has graduated over 800 statewide leaders.