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STRATEGIC
ISSUES...ONLINE
For week of September 26, 2005, Issue #230
Featured Articles:
1. Hurricane Katrina:
Employer Vacation Deduction Allowed
2. Focus on Fraud:
Health Care/Insurance Fraud
3. Tech Tip Weekly:
Double-Crossed by Double-Clicks?
4. Compliance Calendar
If you would like to
have further information on any of these articles, let us know. We
would appreciate receiving your comments and/or suggestions,
anytime!
acarroll@pmcpa.com
acarroll@pmcpa.com
1. Hurricane Katrina:
Employer Vacation Deduction Allowed
The IRS has announced a new leave-based
donation program to promote charitable relief for victims of
Hurricane Katrina. Under this program, employees may opt to forgo
vacation, sick, or personal leave, so that his or her employer can
contribute cash to organizations that provide relief to Hurricane
Katrina victims. An employee's election to forego vacation, sick,
or personal leave will not be deemed constructive receipt of gross
income or wages by the IRS provided that:
(1) the payments are made by the
employer to a Code Sec. 170(c) organization for the relief of
victims of Hurricane Katrina; and
(2) the payments are made to the Code
Sec. 170(c) organization before January 1, 2007.
The employee may not, however, claim a
charitable contribution deduction for the value of the foregone
leave excluded from wages. Employers will be allowed to deduct cash
payments made under such programs as Code Sec. 162 business expenses
if the payment is made to a charitable organization for the relief
of Hurricane Katrina victims and paid before January 1, 2007. Cash
payments made for foregone leave are not required to be included in
Box 1, 3 or 5 of the employee's Form W-2.
2. Focus on Fraud:
Health Care/Insurance Fraud
Some web sites that can be useful for
understanding and dealing with health care/insurance fraud:
National Health Care Anti-Fraud
Association
National Council Against Health Fraud
Coalition Against Insurance fraud
Prangley Marks, LLP does not endorse,
recommend or encourage the use of these web sites; they are shown
for reference purposes only.
3. Tech Tip Weekly:
Double-Crossed by Double-Clicking?
In an effort to make things easier, MS
Windows lets you choose whether a single-click or a double-click
should open a file or folder.
But if you're not satisfied with the
click method MS Windows uses, here's how to change it:
1. Open the Control Panel from
the start button's Settings menu and choose Folder Options
2. Choose your click preference
in the Click Items As Follows section.
3. Click OK to save your
preferences.
Don't like to follow steps? Just click
the Folder Options' Restore Defaults button, and MS Windows will
bring back double-clicking.
4. Compliance Calendar
September 30
-Employers deposit Social Security,
Medicare and withheld income tax for payments September 24, 25, 26,
and 27.
October 5
-Employers deposit Social Security,
Medicare and withheld income tax for payments September 28, 29, and
30.
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