Is Your Restaurant Eligible for Employee Retention Credits?

The Employee Retention Credit (ERC) is a valuable tax credit designed to encourage employers to keep employees on the payroll despite the COVID-19 pandemic’s impact on their businesses. The ERC was originally established by the CARES Act, which was enacted in March 2020. A refundable payroll credit, the ERC provides eligible employers with a tax […]

SECURE Act: Changes to 401(k) Plan Eligibility and Vesting for Part-Time Employees

The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 contained the most significant legislative changes to the private-sector retirement system in decades. One of the SECURE Act’s provisions changes the 401(k) plan eligibility requirements for part-time employees. Related Read: What You Need to Know About the SECURE Act Understanding the rule Previously, part-time […]

Preventing Cyber Theft of Plan Assets Before it is Too Late

In the employee benefit plan landscape, cyber theft of participant accounts is a disaster waiting to happen. Whether or not you are liable as a plan sponsor, is a situation that you do not want to be in. Fortunately, there are steps plan sponsors can take to safeguard participant accounts from cyber theft. Plan sponsors […]

Is Your Restaurant Required to Participate in the Illinois Secure Choice Savings Program?

The Illinois Secure Choice Savings Program is a simple and convenient state-sponsored retirement savings program for employers who do not already offer a qualified plan. With Illinois Secure Choice, employers can help their hard-working employees save for their retirement. Under the Illinois Secure Choice Savings Program, covered employers do not contribute to employees’ accounts or […]

The Pros and Cons of Allowing New Employees to Enroll in Your 401(k) Plan Immediately

401(k) Plan participation eligibility requirements take on greater significance for Plan sponsors in a tight labor market. Weigh these pros and cons to help with your decision.

Disclosure Obligations of Plan Sponsors

Plan sponsors of qualified retirement plans, such as 401(k) plans, are required to provide certain information to plan participants. Although plan sponsors often rely on recordkeepers, third-party administrators or other advisors to help, it is ultimately the responsibility of the plan sponsor to make sure the disclosure requirements are met.

Reaching the Tipping Point – Service Charges vs. Tips

After much debate, the IRS determined – in Revenue 2012-18 – that automatic gratuities are service charges–not tips. This ruling, which went into effect on January 1, 2014, increased the paperwork burden and payroll tax commitment for restaurant owners.

The Importance of Target Date Fund Oversight

Target date funds as a 401(k) Plan investment option have grown in popularity in recent years. Target date funds are mutual funds composed of a group of other mutual funds. These funds are often designed to initially invest fairly aggressively, and then gradually reallocate to become more conservative as it gets closer to that assumed retirement year— the target date. 

The Rise in Cash Balance Plans

Cash balance plans, a defined benefit plan that defines the benefit in terms that are more characteristic of a defined contribution plan, has grown in popularity in recent years.  According to the statistics per the most recent IRS Form 5500 filings, these hybrid plans have increased by approximately 17%, whereas traditional 401(k) plans increased by a more modest 3% over the same time period. 

The Impact of Tax Reform on Restaurants

The Tax Cuts and Job Act of 2017 is the most dramatic reform to the U.S. tax code in more than 30 years, impacting both restaurants and employees.

Correcting 401(k) Plan Loan Failures Voluntarily

Participant loans are a feature of many 401(k) Plans. Participants may borrow the lesser of $50,000 or 50% of the participant’s vested plan assets. Some 401(k) Plans allow a participant to have multiple loans outstanding at one time. In that scenario, the $50,000 limit is lowered by the highest outstanding loan balance during the one-year period ending on the day before the newest loan.

Do You Know Where All of Your Plan Participants Are?

It is not uncommon for previously active employed plan participants to fall off the radar screen. They include retirees and former employees that move away without informing the plan administrator. Before anyone realizes it, they become “lost” participants. This article details the steps to take when dealing with these participants.

City of Chicago Raises Minimum Wage Effective July 1, 2016

In recent years, the number of restaurants — both national chains and local establishments — that have faced wage and hour lawsuits have been on the rise. Therefore, it is imperative that restaurant owners pay attention to the rules that dictate how employees, especially tipped employees, are to be paid under federal and state law. This Restaurant Group blog explains how the City of Chicago’s recent raise in the minimum wage will impact both employer and employee.

ESOPs Facing Tougher Scrutiny

Employee Stock Ownership Plan (ESOP) fiduciaries are facing closer scrutiny by the Department of Labor (DOL), while federal courts, including the U.S. Supreme Court, are weighing in on ESOP cases. This article reminds ESOP sponsors to take a fresh look at how their ESOPs are structured and overseen by fiduciaries.

Are You Counting Your Plan Participants Correctly?

As 2015 draws to a close, plan sponsors will begin compiling data for the year-end census and ultimately, the annual reporting filing. Although counting the number of plan participants seems like it would be simple, there are common mistakes that plan sponsors sometimes make when reporting the number of plan participants. This article highlights pitfalls plan sponsors should avoid when reporting these figures.

Accounting for Gift Card Breakage: Changes on the Horizon?

Many restaurants and retailers sell gift cards to consumers. From a financial perspective, gift cards are basically an interest-free loan from the consumer to the restaurant. From an accounting perspective, proceeds from sales of gift cards are typically recorded on the restaurant’s financial statements as deferred (or unearned) revenues at the time of issuance and later recognized as revenue when the gift cards are redeemed.

Are You Offering a Roth 401(k) Plan Option Yet?

In a Roth 401(k) plan, participants make after-tax contributions to a qualified plan and receive tax-free distributions, provided the funds are in the plan for at least five years from the date of the initial Roth 401(k) plan contribution. Thus, while participants pay a tax on the income that was the source of the contribution, the earnings on the contributions are tax-free. This blog summarizes Roth 401(k) basics and provides support for implementing a Roth option into a 401(k) plan.

Cash Balance Plans a Bright Spot in Dreary Defined Benefit Landscape

Cash balance plans — a hybrid defined benefit pension design — had been on a plateau until just a few years ago. This blog discusses why there has been this increase in growth and provides a refresher on cash balance plans.

Keys to a Profitable Restaurant

The primary goal of a restaurant is similar to any other business: Profitability. In today’s competitive market of countless restaurant options for consumers, restaurant owners are always looking for opportunities to increase revenues and profitability so that their business may both thrive and survive. This blog highlights a few key ways a restaurant can achieve that success.

Will Your Employees Have Enough to Retire?

While many American investors may be confident about their financial prospects, they may also be underestimating their retirement needs. Additionally, investors often admit to their lack of investment knowledge, admitting to spending more time planning home improvements and vacations or researching big purchases rather than planning for retirement. This article provides employers with suggestions for promoting financial literacy among employees.

Annual Reporting of Tip Income for Restaurants

Employers who operate a “large” food or beverage establishment are required to report the income of employees earned in the form of tips. Learn about the three criteria the IRS requires to define your business as a “large” food or beverage establishment and how to file for this tax season if you are.

Various Media

ORBA’s Kenneth Kobiernicki has been mentioned in the media for being awarded AICPA’s Employee Benefit Plans Audit Certificate. Reporting media outlets include the Dayton Business Journal, the Chicago Business Journal, the Minneapolis/St. Paul Business Journal, Markets Insider, and the Pittsburgh Post-Gazette, among others.

Various Media

ORBA’s Ken Kobiernicki, CPA, was mentioned in the media as having been appointed to the Illinois CPA Society’s Employee Benefits Committee. Reporting media include Bizjournals.com, New York Business Journal, International Business Times, Milwaukee Journal Sentinel, Quotemedia, AP Newsroom.com and the Foreign Press Association (FPA), to name a few.

Various Media

ORBA’s Ken Kobiernicki was mentioned in the media as being named to Illinois CPA Society’s Employee Benefits Conference Task Force. Reporting media include Reuters, BizJournals.com, The Business Journal of Greater Milwaukee, The Chicago Commuter and AP Newsroom, to name a few.

ORBA’s Kenneth Kobiernicki Awarded AICPA’s Employee Benefit Plans Audit Certificate

ORBA is pleased to announce that Kenneth J. Kobiernicki has earned the American Institute of Certified Public Accountants’ (AICPA) Advanced Defined Contribution Plans Audit Certificate.

ORBA’s Ken Kobiernicki Reappointed to Illinois CPA Society’s Employee Benefits Committee

CHICAGO — Ostrow Reisin Berk & Abrams, Ltd. (ORBA), one of Chicago’s largest accounting firms, is pleased to announce that the Illinois CPA Society (ICPAS) has reappointed Ken Kobiernicki, CPA to serve a third term on its Employee Benefits Committee, effective as of April 2017.

Illinois CPA Society Reappoints ORBA’s Ken Kobiernicki to Its Employee Benefits Committee

CHICAGO — Ostrow Reisin Berk & Abrams, Ltd. (ORBA), one of Chicago’s largest accounting firms, is pleased to announce that the Illinois CPA Society (ICPAS) has appointed Kenneth Kobiernicki, CPA to serve a second term on its Employee Benefits Committee, effective as of April 1, 2016.

ORBA’s Ken Kobiernicki Named to Illinois CPA Society’s Employee Benefits Committee

CHICAGO – Ostrow Reisin Berk & Abrams, Ltd. (ORBA), one of Chicago’s largest public accounting firms, announces that Kenneth Kobiernicki, CPA, was recently appointed to the Illinois CPA Society’s Employee Benefits Committee.

ORBA’s Ken Kobiernicki Named to Illinois CPA Society’s Employee Benefits Conference Task Force

ORBA announces that Ken Kobiernicki, CPA, was recently appointed to the Illinois CPA Society’s Employee Benefits Conference Task Force. The Task Force’s main function is organizing the Spring 2015 ICPAS Employee Benefits Conference which will be held in Chicago on May 12, 2015.