Radix Accounting

A strong accounting core is the root of a successful business foundation. Radix exists to allow our clients to build the best business possible and we provide expertise in two industries: craft beverage and creative services. We offer integrated accounting service - one point of contact for bookkeeping, payroll, contract CFO service, and tax preparation and planning. 

Affordable Care Act Reporting challenges

The Affordable Care Act (ACA) involves special filing requirements for employers with more than 50 full time equivalent employees. Classified as "applicable large employers" (ALEs), these companies are required to offer minimum essential health care coverage to 95 percent of their full time employees and  dependents. 

Of course in today's political climate there is a lot of discussion about repealing the ACA, but no definitive course of action has been agreed upon by Congress, and until such time taxpayers are required to report ACA activity annually. Penalties can be steep, so ALEs should examine their recording and collection of relevant information for the upcoming tax year. Some of the most common challenges for employers include: 

1. Segregated databases and discrepancies between those databases

2. Improper application of the ACA methodolgies

3. Insufficient documentation of ACA compliance

Many ALEs have separate data sets for timekeeping, benefits, HR, and payroll. Because ACA compliance requires information from each of these areas, an integrated database is best. Without a resource that pulls together these pieces of information employers are left with an administrative headache when creating reports for ACA compliance. Additionally different data sets will likely result in discrepancies, which creates another headache when discrepancies need to be reconciled. If one holistic data set is not reasonable for your company, we highly recommend tracking ACA information and resolving discrepancies on a monthly basis.

The ACA methodologies for calculating full time equivalent employees are complex, which can result in a misinterpretation or incorrect application. This is especially relevant for workforces that have variable-hour, part time, or multi-position employees. Taking time to have your calculations reviewed by another party can save time and increase accuracy for reporting. 

Without proper documentation it can be very challenging to defend positions on a filing. Documentation for company policy and procedures relevant to ACA and procedures to track employee activity should be thorough, and internal controls should be documented. The US Treasury has determined that ACA information will be audited by the IRS, which leads to exposure of an IRS audit for income tax or other areas of compliance. 

The new reporting requirements for the ACA are complex and can seem insurmountable without the right staff, consultants and technologies in place to properly oversee the process.  Consider getting ahead of the issue by assessing how and where your data is kept; verify that your calculations are correct based on ACA methodologies; and that sufficient documentation exists to support your informational filing. 

Oregon Minimum Wage Increase July 2017

Effective July 1, 2016, Oregon increased the minimum wage rate and set forth separate rates for the urban growth boundary (Portland Metro), medium density counties, and low density counties.  The law also established a set annual increase in the minimum wage to take place every July until 2023.  Beginning July 1, 2023, the minimum wage rate will be indexed each year to inflation based on the Consumer Price Index.

Minimum wage is currently $9.75 for work performed in Portland Metro and medium density counties and $9.50 for work performed in low density counties.  Effective July 1, 2017, minimum wage will increase to $11.25 for work performed in Portland Metro, $10.25 in medium density counties, and $10.00 in low density counties

The new minimum wage rates apply to work performed July 1, 2017 to June 30, 2018.  Employers can use the current minimum wage rates to pay hours worked prior to July 1st, even if the date the employee receives the wages is after July 1st.  For example, an employer with a pay date of July 14th covering a pay period of June 25th to July 8th may pay the hours worked June 25th through June 30th at the current minimum wage and the remaining hours at the new minimum wage.