ACCT618 Colorado Technical Week 2 Ethical Implications of Decisions Paper 600 words, excluding references Write a letter to the chief financial officer (C

ACCT618 Colorado Technical Week 2 Ethical Implications of Decisions Paper 600 words, excluding references

Write a letter to the chief financial officer (CFO) of JIM including the following:

Outline your findings on the ethical standard for a corporation’s financial and tax reporting.
State specific examples of the ethical standards and laws that you are following as the tax and financial analyst
Based on your research, state recent examples of changes in reporting standards that you have implemented at JIM.

The files attached below are my previous assignments that I have completed for this class in case you have any questions. 6:34 PM (CDT)
Unit 1 ­ Discussion Board 2
Assignment Overview
Go To:
Type: Discussion Board
Unit: Tax Accounting Information in Business Planning
Due Date: Tue,8/20/19
Grading Type: Numeric
Points Possible: 65
Points Earned: 29
Deliverable Length: 600 words, excluding references
Assignment Details
Scenario
Learning Materials
Reading Assignment
My Work:
Online Deliverables: Discussion Board
Assignment Details
Assignment Description
Primary Discussion Response is due by Friday (11:59:59pm Central), Peer Responses are due by Tuesday (11:59:59pm Central).
As JIM’s corporate tax and financial analyst, you will need to have a clear understanding of the tax advantages and disadvantages of the C corporation form of business and
the risks associated with being a multinational corporation.
What are the advantages and disadvantages of being a C corporation as it relates to taxes?
What are the exchange currency risks of being a multinational corporation?
In your own words, please post a response to the Discussion Board, and comment on other postings. You will be graded on the quality of your postings.
For assistance with your assignment, please use your text, Web resources, and all course materials.
Reading Assignment
Scholes, Wolfson, Erickson, Maydew & Shevlin: Chapters 8, 9
Assignment Objectives
Discuss the tax consequences of choosing different organizational forms and synthesize the basic rules of U.S. tax law applicable to each organizational form.
Other Information
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Philidian Braswell
ACCT618
Unit 1 DB2
August 16, 2019
Tax Accounting Information in Business Planning
What are the advantages and disadvantages of being a C corporation as it relates to taxes?
Corporations have been used for over 500 years to limit owners’ liability and thus encourage
business investment and risk taking. Their use for this purpose continues to this day (n.d.). To
comprehend the advantages and disadvantages of being a C corporation relating to taxation, the
principal thing you should do is to understand the reason for the C corporation. The C
corporation is made to be a different substance than its maker. This implies when you make a C
corporation you know manage two separate books. One book is for the incomes, working costs,
and moves of the corporate substance and the other book are for your own utilization. What does
this involve? It implies that your own benefits are independent from the C corporation. If
something would happen to the company and it must be exchanged to cover obligation your own
effects would be saved. That partition comes at an expense, however. It implies that, for duty
purposes, it is viewed as a different cash or expense source. In this way, it will be exhausted on
its incomes less working spending plan, and you will be saddled on the profit that it pays you.
This is alluded to as twofold tax collection. Twofold tax assessment happens when an income
stream streams into the element and is saddled at that point streams to the investor and is
exhausted. This would have the vast majority disheartened with regards to begin a C enterprise
anyway it shouldn’t. There are ways around the greater part of expenses that gets through a C
organization. First anything under seventy-5,000 dollars of salary is burdened at a diminished
rate. Keep in mind that that is seventy-5,000 after you deducted your working costs out of your
income stream. Another approach to keep away from tax collection is to not pay out profit and to
put them in the capital of the organization. C enterprises have another bit of leeway, that is they
can take out cash pretax and give medicinal, inability, and extra security to its workers at a
decrease cost.
Some of the disadvantages are those of the opposite side on the advantages. For example, how
the personal books had to be separated from the other books. If the company is operating at a
lose there is nothing that can be benefited from the personal books. Other disadvantages would
be the cost of setup. There are approaches to set up a C companies for a decreased sum, anyway
you will get what you pay for. In the event that you pursue the conventional course of setting up
the company you will require a legal counselor, a CPA, and a plan that will work and flow
smoothly. This arrangement will incorporate who will have casting a ballot rights and who will
fill the top managerial staff. The top managerial staff should have gatherings all the time. There
are extra yearly charges that must be paid to choose states for the benefit to begin a C
partnership. On the off chance that you are a proprietor and you work for your company you are
required to be on the finance which implies that you will be liable to twofold tax assessment. In
view of the salary you can find that your enterprise can pay a limit of thirty five percent of its
benefits in charges. Another hindrance of a C partnership is that you can put your deliver the
treat container. There are no draws of cash, if you somehow happened to take cash out it would
be viewed as a profit or a pay which would in a split-second subject you to twofold tax
assessment.
What are the exchange currency risks of being a multinational corporation?
Currency will always increase and decrease, that’s it’s nature and what will always happen. C
corporations results from the fact that double taxation reduces the shareholders income. This
will affect both the business and investments (Business, 2019).
The exchange currency risks for a multinational corporation happen when the firm deals
merchandise into another nation or obtained products and materials from another nation. The
cash hazard that happens in these circumstances is the point at which the incentive between the
monetary forms requires a swapping scale which can change and cause the firm either to
understand a bigger benefit or acquire a misfortune from the trade. The principle idea here is that
the exchange rate between currencies can shift and subsequently can affect the benefits of a firm,
firms can be specific in their conveyance system and production network to help moderate these
dangers. The main concept her is that the exchange rate between currencies can vary and as a
result can impact the profits of a firm, firms can be selective in their distribution network and
supply chain to help migrate the risk.
References
Business?, C. (2019). C Corps – Advantages and Disadvantages CT Corporation. Retrivied 16
August 2019, from https://ct.wolterskluwer.com/resource-center/articles/c-corporationsoffer-advantages-and-disadvantages.
C Corporations: 11 Advantages & Disadvantages. (n.d.). Retrieved from
https://www.corporatedirect.com/start-a-business/entity-types/c-corporation/
6:36 PM (CDT)
Unit 1 ­ Individual Project
Assignment Overview
Go To:
Type: Individual Project
Unit: Tax Accounting Information in Business Planning
Due Date: Wed,8/21/19
Grading Type: Numeric
Points Possible: 100
Points Earned: 88
Deliverable Length: 1500­2000 words, excluding title and references
Assignment Details
Scenario
Learning Materials
Reading Assignment
My Work:
Online Deliverables: Submissions
Assignment Details
Assignment Description
JIM is considering implementing a 401K program for its employees. The program plan will include the company matching at 50% of the employee’s contribution up to 6%
contribution. The Human Resources manager proposing this plan feels it will reduce turnover, improve morale, and provide a competitive edge when recruiting new employees.
The HR manager has estimated JIM’s annual contribution to be $300,000 and the savings to be $70,000 in employee turnover costs and improved performance. Management
is concerned about this additional cost.
Explain the 401 K limits and special treatment for highly­compensated employees.
Document how, as a tax analyst, you see this program.
Document what, if any, will be the tax implications of this program.
Please submit your assignment.
For assistance with your assignment, please use your text, Web resources, and all course materials.
Reading Assignment
Scholes, Wolfson, Erickson, Maydew & Shevlin: Chapters 8, 9
Assignment Objectives
Analyze the tax consequences of financial and operational decisions in short­run and long­run models.
Discuss the tax consequences of choosing different organizational forms and synthesize the basic rules of U.S. tax law applicable to each organizational form.
Evaluate the impact of managerial decisions on the tax liability of the firm.
Recommend strategies for compensation plans in the presence of taxes.
Other Information
There is no additional information to display at this time.
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Running Head: TAX ACCOUNTING
1
Tax Accounting
Philidian Braswell
Colorado Technical University
TAX ACCOUNTING
2
Tax Accounting
Introduction
Businesses that are well established run depending on the employees that they have.
Investors, shareholders all come up with the business idea and put effort into starting a business
organization, but without a workforce, then the business remains just an idea. By the necessity of
the IRS, everyone working is required to pay taxes either as a business owner or as an employee.
Sometimes, the taxes can be brutal, especially considering that the economy keeps growing hence
getting higher and expensive. With the amount of money that one is deducted due to the economy,
leads to several people opting to avoid paying taxes, which is a federal offense. Tax analysts
provide different methods in which people can minimize the taxes they pay while still getting
maximum the salary gotten.
The 401 K program
The 401 k program is a retirement plan that is qualified and endorsed by an employee for
the benefit of the employees. The retirement plan allows the eligible employees to invest and save
their retirement money with no taxes incurred. A 401 K program can only occur when an employee
sponsors it for his or her employees. It offers the individual a chance to decide how much money
they are willing to have cut off for the plan from their basic salary. The deposits are done per what
the plan has outlines as well as the International Revenue service. When one is part of the 401 K
plan, the assigned percentage of their salary is deducted first and sent to the plan while the
remaining is subjected to tax before they can withdraw it. Notably, the 401 K percentage is
deducted pre-tax of the salary (Gale & Ramnath, 2017). In some cases though rare, the plan allows
for hardship withdraws or taken as a loan though they involve a vigorous process and are
TAX ACCOUNTING
3
expensive. In such programs, the employer sometimes decides to contribute to it though it is all
optional. The employer carries the responsibility of deciding who is eligible for the plan within
their business organization.
Additionally, they have to ensure that they run the plans through the right channels ensure
that it is following the rules, regulations and the provisions of the 401 K programs (Gale &
Ramnath, 2017). Concerning these, the employer makes plans on how often the investments are
relocated, hiring qualified people who will ensure that the program is successful and running as
effectively and efficiently as possible. When one has retired and wants to access the 401 K plan
money, then they are taxed on withdrawal, and it helps them in up keep. The plan sponsor is
required to provide the employees with a summary plan description which outlines everything to
do with the plan that is who are the trustees and necessary information concerning the program.
Even so, it still has got several limitations which can be quite devastating. One of the main
cons of the program is that one can have a lot of money in their plan, yet they cannot use it in cases
of emergencies like a disease or other emergencies. In most cases, the 401 K can only be withdrawn
after the employee has retired. Such cases mean that one can experience a big life problem and
despite having the money saved, still not manage to help them. Another limitation is that in the
case that the employer is changed or they change their jobs, the process becomes hectic if it is not
a case of retirement. Such withdraw open to penalties, and one ends up incurring losses instead of
saving as he head planned. The occurrence mainly happens in the long investment term horizon as
in most cases; employees are not the same in ten years. Mostly, the value of 401 K plans is based
mainly on the concept of dollar-cost averaging, which is not always reliable (Guan, & Vitagliano,
2015). For highly compensated employees, employers are more likely to endorse them. Also, they
get to have the catch-up plan, which involves them trying to save up for the time that they were
TAX ACCOUNTING
4
not so that they can have a significant retirement investment. It mainly applies to employers and
employees above the age of 50. The catch-up plan is almost included in all 401 K programs. With
such a plan, the employees have the morale to work harder, give more productivity so that their
saving cut can also increase. The concern on the additional management cost is valid, but with the
increased morale and motivation, the costs will be met within a shorter time than before, especially
because the turnover rate will go down as well.
Tax Analyst View
In most cases, the 401K program works for the benefit of the employees in the long run
and the company itself as well. In this case, they plan on 6% contribution by almost 50% of the
employees means that the employees will be investing a good amount of money in their retirement
plan. Additionally, the organization can, at times use the investments made by the employees to
further their business as long as when they retire the whole amount saved up will be available.
Investing in the program will greatly benefit JIM and the employees, which will be a win-win
situation. Another observable factor will be the fact that it will indeed reduce the turnover rate
within the company (Jeszeck, 2016). When an employee has a reliable retirement plan that is
supported by the organization they are working for with total transparency, then they are more
willing to work harder to increase the savings.
High turnover rates occur in cases where there is firing, death, or replacement of
employees. Firing and termination of an employee happen in the case that they are not productive
to the organization. With the 401 k, it acts as a motivator for the employees remember the more
they get, the higher the savings especially if the organization usually offers bonuses. Also, the
employees are appreciative to the employers for endorsing and considering the 401 K plan, which
TAX ACCOUNTING
5
will act as a motivator. Observably, there will be an increase in management cost in the fast few
months, but with the newly gained morale within the company by the employees, there is bound
to be an increase in productivity. The increase will provide more income to cover the increased
cost, and with no tie, it will be handled. Also, with increased income and the company contributing
to the 401 K, less taxation will befall the total revenue earned in the organization, which enables
for better planning and more capital to develop the organization.
Tax Implications of the Program
Observably, one of the major implications of the 401 K program within JIM is that the
employees will be driven to work harder so that their retirement saving plan is maximized
especially if they are given bonuses either yearly or in whatever time frame they choose. When an
employee feels supported by an organization and their boss, they feel appreciated and as a result,
double up on their output to show their gratitude. Also, we get to see that offering a 401 K program
reduces the chances of high turnover rates which save on cost like time to rehire, train new
workforce which will be a waste of precious time (Jeszeck, 2016). Whenever an organization hires
new employees, especially if the turnover rate is high, they are pulled a few steps backward as they
have to use resources and time to train the new workforce.
Additionally, the company gets to create a competitive edge when it has to recruit new
employees as the already existing employees are motivated to do their best. When a new workforce
is trained and employed, and they find their working capacity is in line with that of the workforce
that they found. In an organization, new employees tend to follow the culture it has found, so if
they do find hard-working people, then they are challenged to do better on a higher level. Another
implication is that it gives the senior employees a chance to get a retirement plan despite the late
TAX ACCOUNTING
6
timing. They get the chance to use the catch-up plan and facilitate their saving (Guan, &
Vitagliano, 2015). The 401 K is beneficial to the owner of the company as they get, especially
when using a Roth plan as it allows them to take a Roth even if the income it is above the limit
Roth.
Conclusion
Notably, the 401 K is very beneficial for both their employees as well as employers.
Therefore, organizations should continue embracing the idea and promoting it via their
organizations. The provisions given by the International Revenue Authority are conducive and
helpful for both parties. Also, it has been noted that organizations that offer the 401 K have better
productivity and a competitive edge within the organization. JIM made the right decision in
planning to invest in the 401 K plan as it will enable their workers to save for retirement without
much strain as they will only pay the taxes for the savings at withdrawal and not twice.
TAX ACCOUNTING
7
References
Gale, W., Krupkin, A., & Ramnath, S. (2017). POLICY BRIEF: THE INTERACTION
BETWEEN IRAS AND 401 (K) PLANS IN SAVERS’PORTFOLIOS.
Guan, Q., Rutledge, M. S., Wu, A. Y., & Vitagliano, F. M. (2015). Do Catch-Up Contributions
Increase 401 (k) Saving. Chestnut Hill, MA: Center for Retirement Research at Boston
College, 1-6.
Jeszeck, C. A., Cross, T., Leslie, T., Moscovitch, T., & Lin, D. (2016). 401 (K) Plans: DOL
Could Take Steps to Improve Retirement Income Options for Plan Participants. Available
at SSRN 2855726.

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