![[Webinar] Employee Retention Tax Credits: Qualifications, Benefits & Refunds](https://www.krostcpas.com/wp-content/uploads/ERTC-Webinar-1-1.jpg "[Webinar] Employee Retention Tax Credits: Qualifications, Benefits & Refunds")
[Webinar] Employee Retention Tax Credits: Qualifications, Benefits & Refunds
Join Jason Melillo, CPA (Principal – Accounting, ERTC) and Jeff Kamin, CPA (Manager, Accounting, ERTC) as they host a webinar on Employee Retention Tax Credits (ERTC) on Thursday, March 4th at 10:30AM PST. In this session, they will review the details of the recently passed Taxpayer Certainty and Disaster Tax Relief Act of 2020, including: … Read More
Relief Comes in the Form of R&D Tax Credits for Manufacturing Companies
This is one of the articles in the KROST Quarterly Manufacturing Issue, titled “Relief Comes in the Form of R&D Tax Credits for Manufacturing Companies” by Guest Contributor, Michael Maroney. As history has shown us, difficult times can spark a renaissance of innovation and creativity. With the continued impact of the Coronavirus on American businesses, … Read More
![[Webinar] PPP 2021 Program – Updates on Loan Applications, Rule Changes, Eligibility, Forgiveness, and Interaction with ERTC](https://www.krostcpas.com/wp-content/uploads/Webinar_-PPP-Second-Draw-Program-–-Rules-for-Eligibility-and-Forgiveness-2.jpg "[Webinar] PPP 2021 Program – Updates on Loan Applications, Rule Changes, Eligibility, Forgiveness, and Interaction with ERTC")
[Webinar] PPP 2021 Program – Updates on Loan Applications, Rule Changes, Eligibility, Forgiveness, and Interaction with ERTC
The PPP loan program is evolving fast with new rules on Second Draw applications, including a 2-week pause on companies with 20 or more employees and new calculations for sole proprietors. In addition, both the lenders and the SBA are reviewing, rejecting, and putting holds on many applications because of API errors, compliance failures, and … Read More
The House Votes to Extend Employee Retention Tax Credit Through December 2021
We got some great news this morning. The House has voted 219-212 to extend the Employee Retention Credit through December 31, 2021 as part of the $1.9 Trillion Covid relief bill. If it passes the Senate next week it will very likely be signed by the President shortly after. The Employee Retention Credit is a … Read More
Expatriation Exit Tax
US citizens living abroad and foreign nationals residing in the US are renouncing their citizenship in a record-breaking fashion. During the first three quarters of 2020, the IRS published 5,045 individuals who have made the ultimate decision to expatriate and formally cut ties with the United States. This amount is significantly higher than the numbers … Read More
Opportunity Zones and Cost Segregation
This is a preview of one of the articles in the new KROST Quarterly Real Estate Issue, titled “Opportunity Zones and Cost Segregation” by Guest Contributor Artur Babaian Opportunity Zones are garnering increased interest across the country. Created by the Tax Cuts and Jobs Act (TCJA) in December 2017, taxpayers who meet the requirements for investing … Read More
Is the GILTI High Tax Exception a Benefit for Controlled Foreign Corporations?
Navigating the ins and outs of US taxes as a US shareholder of a controlled foreign corporation (CFC) has been complex in the last couple of years due to changes in regulations from the IRS. Taxpayers need tax planning to determine the best strategy to mitigate the CFC’s tax liabilities. In 2019, the IRS and … Read More
Restaurant Site Audit – Post-COVID Operations
In 2020, the Restaurant Industry was projected to do $899 billion in sales. That expectation has since been adjusted down to $659 billion in sales, a $240 billion hit to the industry as a result of the pandemic. Every operator has felt the effects of the pandemic, and the most motivated, wasted no time pivoting … Read More
Tips to Help People Choose a Reputable Tax Preparer
The following article was written by the IRS. View the original source here: https://www.irs.gov/newsroom/tips-to-help-people-choose-a-reputable-tax-preparer Whether taxpayers regularly use a tax professional to help them file a tax return or they have decided to work with one for the first time, it is important to choose a tax return preparer wisely. Taxpayers are responsible for all the information … Read More
FAQs – PPP Loans
Since the CARES Act passed into law in March, there have been new laws, multiple rule publications, and over 50 FAQs released by the SBA regarding the PPP and EIDL loans. KROST’s subject matter experts have compiled a list of frequently asked questions below: Question: How are full-time equivalent employees calculated in the 2nd PPP? … Read More
KROST Quarterly Magazine: The Financial Services Issue is Now Available!
We are happy to announce the release of our newest quarterly magazine! The Financial Services Issue highlights some of the hot topics in financial services including Section 1244 claims, the Lender Management, LLC case study, research & development, waterfall calculations, IRC Section 1061, and FinTech trends. What You’ll Find Inside this Issue: Section 1244: Claiming … Read More
Estate Tax – Current Law, 2026, Biden Tax Proposal
With the advent of the Tax Cuts and Jobs Act of 2017, the estate, gift, and generation skipping tax exemptions increased dramatically, but these changes were only temporary. With the Biden administration now in place and at least some Democratic control of the senate, there is added uncertainty that should be evaluated soon. It is … Read More
Los Angeles Based CPA Firm Announced New Principal, Stacey R. Korman, CPA, MST
Pasadena, CA. – KROST CPAs and Consultants, the Los Angeles based firm, has announced a new Principal, Stacey R. Korman, CPA, MST. Stacey has extensive experience in assurance & advisory and accounting services and since joining the firm she has led the accounting and audit departments. As an AICPA certified Fundamental Client Accounting Advisor, Stacey … Read More
FAQs – Employee Retention Credit (ERTC)
The Employee Retention Credit (ERTC) was created as part of the CARES Act to encourage businesses to continue paying employees by providing a credit to the eligible employer for wages paid to eligible employees. The ERC could be a valuable alternative for those who did not qualify for PPP and other emergency loans. We have … Read More
![[Webinar] Employee Retention Credits: Qualifications, Benefits & Refunds](https://www.krostcpas.com/wp-content/uploads/ERC-Webinar.jpg "[Webinar] Employee Retention Credits: Qualifications, Benefits & Refunds")
[Webinar] Employee Retention Credits: Qualifications, Benefits & Refunds
Join Jason Melillo, CPA (Principal – Accounting, ERTC) and Jeff Kamin, CPA (Manager, Accounting, ERTC) as they host a webinar on Employee Retention Tax Credits (ERTC) on Wednesday, February 10th at 9:30AM PST. In this session, they will review the details of the recently passed Taxpayer Certainty and Disaster Tax Relief Act of 2020, including: … Read More
The Latest COVID-Relief Package – Time to go Green
On December 27, 2020, Congress passed a $900 billion COVID-relief package, along with a $1.4 trillion spending package, that funds the government for the 2021 fiscal year. The spending bill includes several tax extenders; Section 45L tax credit for multifamily and residential developers, 179D tax deduction for commercial and government buildings, as well as 25C … Read More
![[Second Session] PPP Second Draw Loan Program & the Revised Employee Retention Credit – Eligibility and Process Webinar](https://www.krostcpas.com/wp-content/uploads/PPP-Second-Draw-Loan-Program-the-Revised-Employee-Retention-Credit-–-Eligibility-and-Process-1-1.jpg "[Second Session] PPP Second Draw Loan Program & the Revised Employee Retention Credit – Eligibility and Process Webinar")
[Second Session] PPP Second Draw Loan Program & the Revised Employee Retention Credit – Eligibility and Process Webinar
Paren Knadjian (Practice Leader, M&A, and Capital Markets), Stacey Korman, CPA (Principal), Sossi Bekarian, CPA (Senior Manager), and Jeff Kamin, CPA (Manager, Accounting, ERTC) hosted a second session on the PPP Second Draw Program & Employee Retention Credits webinar. They reviewed the details of the recently passed Coronavirus Response & Relief Supplemental Appropriations Act including: … Read More
Real Estate Business Provision and Initiatives Included in Bipartisan COVID-19 Agreement
Congress introduced the Bipartisan economic relief package on December 20, 2020. This relief bill provides stimulus to individuals and businesses. As an industry impacted by the pandemic, real estate businesses can benefit from several key tax provisions in the package. We have outlined these opportunities below. Business Meals Deduction Currently, the deductibility of business meals … Read More
Manufacturing Companies Beware: CCPA May Impact Your Business
This is one of the articles in the KROST Quarterly Manufacturing Issue, titled “Manufacturing Companies Beware: CCPA May Impact Your Business” by Keith Hamasaki, CPA. The California Consumer Privacy Act (“CCPA”) is a comprehensive framework to protect California residents (consumers). Effective January 1, 2020, data protection became a California requirement for businesses. All businesses that … Read More
2020 vs. 2021 Employee Retention Credit Comparison Chart
Old Law New Law Eligible Employers 2020 2021 Eligible employers can receive a refundable payroll tax credit of 50% of wages paid to employees between March 13th, 2020 and December 31st, 2020. No Change Eligible employers can receive a refundable payroll tax credit up to 70% of qualifying wages paid between January 1, 2021 and … Read More
Eleventh-Hour Pandemic Relief – What a Homeowner Should Know
The Consolidated Appropriations Act (the “Act”) passed by Congress and signed by the President on December 27, 2020, outlined several provisions to help individuals through this extended time of financial uncertainty. Most of these provisions are included in the Additional Coronavirus Response and Relief (“ACRR”) and the Taxpayer Certainty and Disaster Tax Relief Act of … Read More
Real Estate Related COVID Relief Under the Consolidated Appropriations Act (CAA)
The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the Economic Aid Act) as part of the Consolidated Appropriations Act, 2021 (the 2021 CAA) was signed into law on December 27, 2020. The CCA is a $2.3 trillion package that provides additional funding to the PPP program and includes several key provisions that … Read More
A Deeper Dive into the Unintended Consequences of the Proposed Section 1031 Regulations
This is a preview of one of the articles in the new KROST Quarterly Real Estate Issue, titled “A Deeper Dive into the Unintended Consequences of the Proposed Section 1031 Regulations” by Jonathan Louie In 2017, the Tax Cuts and Jobs Act (TCJA) amended Internal Revenue Code (IRC) Section 1031 to limit nonrecognition treatment to exchanges … Read More
Sales Tax and Economic Nexus
These days, anybody who sells goods or provides services to somebody outside of their home state should ask themselves, “Do I need to collect sales tax?” The correct answer is always, “Good question!” However, the best way to get a useful answer is to start with a concept closely related to sales tax, namely “use … Read More
![[WEBINAR] PPP Second Draw Loan Program & the Revised Employee Retention Credit – Eligibility and Process](https://www.krostcpas.com/wp-content/uploads/PPP-Second-Draw-Loan-Program-the-Revised-Employee-Retention-Credit-–-Eligibility-and-Process-1.jpg "[WEBINAR] PPP Second Draw Loan Program & the Revised Employee Retention Credit – Eligibility and Process")
[WEBINAR] PPP Second Draw Loan Program & the Revised Employee Retention Credit – Eligibility and Process
Paren Knadjian (Practice Leader, M&A, and Capital Markets), Stacey Korman, CPA (Principal), Sossi Bekarian, CPA (Senior Manager), and Jeff Kamin, CPA (Manager, Accounting, ERTC) will host a free webinar on the PPP Second Draw Program & Employee Retention Credits. They will review the details of the recently passed Coronavirus Response & Relief Supplemental Appropriations Act … Read More
Paycheck Protection Program First & Second Draw Loans – Updated Rules
On December 27, 2020, President Trump signed the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the Economic Aid Act) into law to provide continued assistance to individuals and businesses that have been financially impacted by the ongoing coronavirus pandemic. Section 311 of the Economic Aid Act added a new temporary section, 7(a)(37), … Read More
Paycheck Protection Program Re-opens
The SBA has opened the Paycheck Protection Program loan portal on Monday, January 11, 2021 at 9 am ET. At this point, it is initially accepting First Draw PPP Loan applications from Community Development Financial Institutions, Minority Depository Institutions, Certified Development Companies, and Microloan Intermediaries. However, that will be broadened to include all lenders, and … Read More
Register for Upcoming Webinar with the CRA: PPP Second Draw Program – Rules for Eligibility and Forgiveness
Jean Hagan (Principal, Restaurant / Business Management) and Paren Knadjian (Practice Leader, M&A, and Capital Markets, PPP Forgiveness) are hosting a free webinar with the California Restaurant Association (CRA), on the PPP Second Draw Program. Join our restaurant accounting and consulting experts on Thursday, January 14th at 10AM PT as they provide an in-depth look … Read More
Register for Upcoming Webinar – PPP Second Draw Program & Other Key Provisions of the COVID-19 Relief Bill
Jean Hagan (Principal, Restaurant / Business Management) and Paren Knadjian (Practice Leader, M&A, and Capital Markets, PPP Forgiveness) are hosting a free webinar with Kristi Turner, CMO of Compeat Restaurant Management Software, on the PPP Second Draw Program. Join our restaurant accounting and consulting experts on Wednesday, January 13th at 1PM CT as they provide … Read More
The COVID-19 Vaccine: Positioning Your Restaurant for a Successful 2021
With 2020 in the history books, many restauranteurs are looking at similar uncertainties in 2021 that the industry has been hurdling for the last nine months. Information is flying at us at near lightspeed, and it is easy to lose sight of the opportunities that lie within the voluminous pages of new legislation. However, one … Read More
California Small Business COVID-19 Relief Grant Program
As part of the assistance package that was announced by Governor Newsom in September 2020, the State of California is providing $500 million in grants to small businesses that are impacted by COVID-19. Small businesses with annual gross revenue of less than $2.5 million can receive up to $25,000 in the grant. There will be … Read More
The Paycheck Protection Program & Other Small Business Support as Part of The New Stimulus Bill
As previously reported, the $900 billion COVID-19 stimulus Bill contains an additional $284 billion for additional PPP loans for small businesses, referred to as Second Draw Loans. Some of the new rules and rule changes apply to both the Initial and Second Draw PPP loans. Below are the details of the Bill, with respect to PPP … Read More
$900 Billion Stimulus Bill Agreed in Congress
Congress reached an agreement late on Sunday, December 20th, for a $900 billion stimulus package. The Bill is expected to pass the House and Senate and be signed into law by December 23rd. The full text of the Bill has just been released and we are reviewing the details. Meanwhile, below are the highlights of how … Read More
Employee Retention Credit Provides Benefits for Manufacturing Employers
This is a preview of one of the articles in the new KROST Quarterly Manufacturing Issue, titled “Employee Retention Credit (ERC) Provides Benefits for Manufacturing Employers ” by Jim Estrella, CPA, MSA. For manufacturers who experienced a suspension in operations or decline in business compared to 2019 due to the COVID-19 crisis, the Employee Retention … Read More
Challenges Facing the Real Estate Industry in the Wake of COVID & the Election
This is a preview of one of the articles in the new KROST Quarterly Real Estate Issue, titled “Challenges Facing the Real Estate Industry in the Wake of COVID & the Election” by So Sum Lee It’s no question that the economy as a whole was (and continues to be) stressed by the COVID-19 pandemic. Now … Read More
Escheating Uncashed Payroll Checks
With all the different issues restaurants are facing in the COVID-19 environment, we still have a handful of ongoing issues that always need to be addressed at the end of the year. Escheating uncashed payroll checks to the State of California is one of the oldest, time-consuming procedures restaurateurs must conform to every year. Escheating … Read More
California Proposition 19: Tax Changes
California Proposition 19 passed with just over 51% of the vote in the general election on November 3rd and is expected to become law. This new law has two separate effective dates: February 16, 2021 – For beneficiaries of real estate that use the property as a primary residence. April 1, 2021 – For transferring … Read More
2020 Year-End Tax Planning Opportunities for Individuals
As year-end approaches, it is wise to think of planning moves that will help lower your tax obligations and provide financial relief. Year-end planning for 2020 takes place against the backdrop of the 2017 Tax Cuts and Jobs Act (TCJA) and the 2020 CARES ACT. The TCJA had major changes in the tax rules for … Read More
Year-End Tax Planning Strategies for Businesses
In the last few months of the year, it is important to consider year-end tax planning opportunities, as many may provide both immediate and long-lasting financial benefits. This year has brought unique challenges and significant change. Businesses that have not yet explored year-end tax planning should take an immediate inventory of their situation to ensure … Read More
COVID-19 Losses
On March 13, 2020, President Trump declared a national emergency disaster, related to the COVID-19 virus 1. Following the declaration, under the new tax law (TJCA), taxpayers can claim a business casualty loss related to the disaster on either their 2019 original/amended return or their 2020 return. Some examples of losses that may qualify, but … Read More
California Small Business Hiring Tax Credit
A lot of people lost their jobs in 2020 when businesses were forced to shut down or had to furlough their employees due to COVID. To help Californians get back to work, California’s governor signed a new tax bill to give tax breaks to small businesses that increased hiring during the second half of 2020. … Read More
Innovation, Positivity, and Evolution: How Three Businesses are Navigating the Pandemic
This is a preview of one of the articles in the new KROST Quarterly Manufacturing Issue, titled “Innovation, Positivity, and Evolution: How Three Businesses are Navigating the Pandemic” with Serrano Industries, Inc., Drop Labs & LumaForge. For insight into how manufacturers and businesses that rely heavily upon supply chains have been impacted by COVID-19, we … Read More
Navigate the Complex Issues in Manufacturing & Distribution with KROST’s Industry Experts
KROST has extensive experience in the manufacturing and distribution industry. Our team of experts has experience servicing clients in various sectors such as aerospace and defense, automotive and transportation, consumer products, food and beverage, industrial parts, wholesale distribution, and more. Manufacturing and distribution clients rely on our suite of services, specifically catered to their needs. … Read More
KROST PPP Loan Forgiveness Application Service – Update and Price Increase
KROST has now assisted over 50 clients prepare and submit PPP loan forgiveness applications to their lenders and those submitted to the SBA had 100% forgiveness. Although there is no immediate rush to submit loan forgiveness, there are two main reasons companies are applying now rather than later. First, once forgiven, you can take the … Read More
“Solving the Unsolvable” Quantum Computing Developments and Constraints
This is a preview of one of the articles in the new KROST Quarterly Technology Issue, titled “Solving the Unsolvable” Quantum Computing Developments and Constraints” by Paren Knadjian The computing ecosystem has had deep influences on society and changed lives in a myriad of ways. Despite decades of impressive Moore’s Law performance scaling, there are … Read More
Experience and Knowledge Leads KROST’s Financial Services Industry
Management companies of hedge funds, money managers, private equity firms, and their principals have come to our firm to advise on a wide range of accounting and tax services. We are leaders in the financial services industry, focusing on management companies and their investment vehicles. Our team brings experience, knowledge, and a wide range of … Read More
KROST Quarterly Magazine: The Real Estate Issue is Now Available!
We are happy to announce the release of our newest quarterly magazine! The Real Estate Issue highlights some of the hot topics in real estate including 1031 Exchange, Cost Segregation, Opportunity Zones, Qualified Improvement Property, Delaware Statutory Trusts, and Green Building Tax Incentives. What You’ll Find Inside this Issue: Challenges Facing the Real Estate Industry … Read More
Manufacturers with International Operations Should Expect a Tax Bill – Pandemic or Not
This is a preview of one of the articles in the new KROST Quarterly Manufacturing Issue, titled “Manufacturers with International Operations Should Expect a Tax Bill – Pandemic or Not” by Guest Contributor, Alex Martin. Governments with pressing needs for revenue will target multinationals. Here’s how to mitigate the risk. According to the Center for … Read More
The Impact of the 2020 Election on Wealth and Taxes
At KROST and our associated wealth management firm, KROST Wealth, our goal is to provide you with timely news and insights. As we venture into the next presidential election, it is important to note the differences between the two candidates’ tax proposals as we look toward the next four years. As one may suspect, each … Read More
COVID-19 and the Sports & Entertainment Industry
Ronique Davis, one of KROST’s Sports & Entertainment Industry experts, recently attended the Entertainment Industry Virtual Conference hosted by CalCPA. Below, she shares some of the insights she learned at the virtual event regarding how COVID-19 is impacting the industry. COVID-19 has had an effect on the lives of almost everyone we know to varying … Read More
R&D Tax Credits for Software Development Advancements in 2020 & Beyond
This is a preview of one of the articles in the new KROST Quarterly Technology Issue, titled “R&D Tax Credits for Software Development Advancements in 2020 & Beyond” by Guest Contributors Tetyana Guguchkina and Tiffany Solymon. Throughout the years, software has found itself in every facet of our lives, from smartphones to smart televisions; even … Read More
Donation Update on Jean’s 86 My Hair for Restaurants Care Fundraiser
In May, our Business Management Principal, Jean Hagan joined Restaurants Care in their 86 My Hair campaign to raise money for restaurant workers impacted by the pandemic. Jean pledged to shave her head if we reached a goal of $25,000 in donations. We have raised $15,465 so far and hope to reach our goal soon. … Read More
Client Spotlight: AUDIENCEX on Expansive Growth & the Evolution of AdTech
This is a preview of one of the articles in the new KROST Quarterly Technology Issue, titled “Client Spotlight: AUDIENCEX on Expansive Growth & the Evolution of AdTech” with Ryan Carhart, CFO and Brian Ko, CCO. Recently, we had the opportunity to sit down and talk to one of our incredibly successful and cutting-edge tech … Read More
KROST Client Lilit Davtyan of Phonexa Awarded CFO of the Year
We would like to extend our congratulations to Lilit Davtyan for receiving the title of Large Private Company CFO of the Year. She received this recognition during the 14th Annual CFO Awards hosted by the Los Angeles Business Journal on September 23, 2020. Lilit is the CFO of one of our valued clients, Phonexa, an … Read More
The Impact of the Pandemic on State and Local Tax Considerations for a Remote Workforce
The COVID-19 pandemic has completely changed what we once thought was normal. With social distancing becoming a way of life, millions of Americans are now working remotely. For many, there is no certainty as to when or if they will return to their workplaces. As the pandemic drags on, many businesses have allowed their employees … Read More
KROST PPP Loan Forgiveness Review Services for Borrowers and Lenders
Since the launch of the KROST PPP Loan Forgiveness Application Review Service, almost one-third of our clients that received PPP loans have already signed up. If you’re interested, our services are intended to aid both borrowers and lenders by taking on the burden of calculating forgiveness values, checking that expenses conform to the SBA forgiveness … Read More
Foreign-Derived Intangible Income (FDII) Can Increase Cash Flow for Manufacturing Companies and Distributors with Global Operations
This is a preview of one of the articles in the new KROST Quarterly Manufacturing Issue, titled “Foreign-Derived Intangible Income (FDII) Can Increase Cash Flow for Manufacturing Companies and Distributors with Global Operations” by Evelyn Fernandez, CPA, MST. The Tax Cuts and Jobs Act (TCJA) included several tax changes relating to the US taxation of … Read More
Payroll Tax Deferral – IRS Guidance on President Trump’s Executive Memorandum
Payroll Tax Deferral started this week (September 1, 2020) and has left many employers and their staff at a loss for what to do. While additional guidance is needed in order to determine how best to proceed, here are the facts about the executive memorandum, and the IRS’ response. In August, President Trump signed an … Read More
Accounting for PPP Loans and Forgiveness
This is a preview of one of the articles in the new KROST Quarterly Manufacturing Issue, titled “Accounting For PPP Loans and Forgiveness” by Keith Hamasaki, CPA. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed by President Trump to help keep small businesses afloat amid the mandated COVID-19 related closures. The CARES … Read More
IRS to Audit High-Income Tax Returns
The IRS announced on June 18th that they will be looking at hundreds of high-income tax returns between July 15th and September 30th. They are expected to be looking at not only the taxpayer’s individual returns but any business-related pass-through entities as well. These reviews create exposure for athletes and entertainers who have high income and … Read More
How Restaurants are Navigating the Pandemic: Service, Safety, and Support
The restaurant industry has never experienced what we are going through right now. I spend all my time consulting with responsible operators to figure out how to continue operations, keep staff and guests safe, and maintain cash flow. Hundreds of meetings have the same theme: we will fight and do whatever is necessary to keep … Read More
Tax Breaks for US Citizens Living Abroad
More and more US citizens are moving abroad for various reasons. The move could be work-related, family-related, or simply adventure-related. Technology has also made it possible for many professionals to be able to work from anywhere in the world. Most US citizens aren’t aware of the tax breaks they may be able to get as … Read More
CCPA: California Enforces New Privacy Laws Impacting all Businesses Collecting Data
This is a preview of one of the articles in the new KROST Quarterly Technology Issue, titled “CCPA: California Enforces New Privacy Laws Impacting all Businesses Collecting Data” By Steve Chhour, CPA and Keith Hamasaki, CPA. In recent years, the security of consumer data has been under significant scrutiny by all types of security organizations … Read More
KROST Launches PPP Loan Forgiveness Review Services for Borrowers and Lenders
Pasadena, CA August 10, 2020 – Award-winning tax, accounting, and consulting firm, KROST, announced the launch of their PPP Loan Forgiveness Application Review Service for both Borrowers and Lenders. The services are intended to aid both borrowers and lenders by taking on the burden of calculating forgiveness values, checking that expenses conform to the SBA … Read More
![[Webinar Replay] The PPP Loan Forgiveness Application Process for Lenders and Borrowers with Live Q&A](https://www.krostcpas.com/wp-content/uploads/The-PPP-Loan-Forgiveness-Application-Process-1.jpg "[Webinar Replay] The PPP Loan Forgiveness Application Process for Lenders and Borrowers with Live Q&A")
[Webinar Replay] The PPP Loan Forgiveness Application Process for Lenders and Borrowers with Live Q&A
If you missed our webinar led by Paren Knadjian, Head of M&A and Capital Markets at KROST, there is a recording available. This webinar goes over the KROST PPP Loan Forgiveness Review Service for lenders and borrowers, and how it addresses the forgiveness process in a timely and efficient manner, while ensuring compliance with the … Read More
Message from Managing Principal Greg Kniss: New Office Locations, Services, and Resources
It’s been quite a year for us all. I hope you are safe and well, as we continue to face one of the most challenging times in recent history. I wanted to reach out to notify you of some new and recent changes for our firm. First, we have moved three of our main offices … Read More
KROST Quarterly Magazine: The Manufacturing Issue is Now Available!
We are happy to announce the release of our newest quarterly magazine! The Manufacturing Issue highlights some of the hot topics in manufacturing, including accounting for PPP, transfer pricing, Foreign-Derived Intangible Income (FDII), R&D tax credits, and more. What You’ll Find Inside This Issue: Accounting for PPP Loans and Forgiveness by Keith Hamasaki, CPA Manufacturers … Read More
Protective Claim of Refund for Obamacare Taxes
The U.S. Supreme Court has agreed to hear a case challenging the constitutionality of the Patient Protection and Affordable Care Act (PPACA) in California v. Texas. Previously known as Texas v. US in the lower courts, the U.S. Court of Appeals declared that the requirement for individuals to carry health insurance was unconstitutional. This decision was largely based … Read More
Tech Company Compensation: Unraveling the Mystery of the 83(B) Election
This is a preview of one of the articles in the new KROST Quarterly Technology Issue, titled “Tech Company Compensation: Unraveling the Mystery of the 83(B) Election” by Robert Gosart, CPA. Most technology companies offer stock-based compensation. If you are an employee that can benefit from a company that does, you probably have heard of … Read More
Let’s 86 Jean’s Hair for Restaurant Workers Impacted by COVID-19
Restaurants have been integral to the KROST business since 1939, and during this unprecedented time, the restaurant industry has been severely impacted by the COVID-19 restaurant closures. Although restaurants are beginning to phase out their re-openings, it is likely that the industry would not return to their full capacity until the next year. These COVID-19 … Read More
Reminder: Tax Filing Deadline
The July 15 tax-filing deadline is quickly approaching, remember to pay your taxes on time. Earlier this year the Treasury Department and the IRS provided federal tax filing and payment relief to individuals and businesses in response to the COVID-19 pandemic. The deadline changes also apply to disaster victims, 2016 refunds, extensions, and IRS contributions. … Read More
PPP Calculator Update and Webinar Replay: PPP Rule Changes and Forgiveness Update with Q&A
The KROST PPP Budgeting and Forgiveness Maximization Tool allows you to budget and plan the use of PPP loan proceeds, on a month-by-month basis, to maximize forgiveness. This includes detailed staff planning, minimizing loan forgiveness reductions, and ensuring non-payroll related costs remain within the allotted 40%. You can also enter the actual expenditure for all … Read More
Main Street Loan Program – Updates
On June 8, 2020, the Federal Reserve Bank of Boston released updated Frequently Asked Questions (FAQs) and Term Sheets with respect to the Main Street Lending Program. Subsequently, on June 11, 2020, it released corresponding updates to many of the program’s documentation. The Board changed the terms and expanded its Main Street Lending Program to … Read More
The California Safe Harbor for Residents Working Abroad
If you are a California resident who accepts overseas assignments, or an international employer with California residents working abroad, you should know about the California Safe Harbor. The California Safe harbor is available for certain individuals leaving California under employment-related contracts. The safe harbor provides that an individual domiciled in California who is outside California … Read More
Paycheck Protection Program Flexibility Act (PPPFA) Becomes Law
The PPPFA On Friday, June 5, 2020, President Trump signed into law the Paycheck Protection Program Flexibility Act (PPPFA) that changes the forgiveness rules on the Paycheck Protection Program loans. The House passed the PPPFA by 417-1 vote on May 27th, and the Senate approved it by unanimous consent on June 3rd. The key changes … Read More
Senate Passes Bill That Changes the Paycheck Protection Program Loan Forgiveness Rules
On Wednesday, June 3rd, the Senate passed the House Bill HR 7010, that modifies the Paycheck Protection Program. Senate Majority Leader Mitch McConnell (R-KY) brought up the Bill just after 7 pm Eastern Time, and the measure passed by voice vote. The next step will be for President Donald Trump to sign it into law. … Read More
The Streaming Wars: Technology Trends in Media and Entertainment
This is a preview of one of the articles in the new KROST Quarterly Technology Issue, titled “The Streaming Wars: Technology Trends in Media and Entertainment” by Paren Knadjian. The U.S. media and entertainment (M&E) industry is the largest in the world. At $717 billion, it represents a third of the global M&E industry. It … Read More
House Passes Bill That Proposes Changes to the Paycheck Protection Program Loan Forgiveness Rules
On Thursday, May 28th, the House of Representatives passed a Bill, that, if ratified by the Senate and the President, would make significant changes to the rules governing forgiveness of PPP loans. The Bill, HR 7010, the Paycheck Protection Program Flexibility Act of 2020, was sponsored by Rep. Dean Phillips, (D-MN-3) and co-authored by Rep. … Read More
Employers Can Grant Paid Leave for COVID-19
The following article was written by the IRS. View the original source here: https://www.irs.gov/newsroom/employers-can-grant-paid-leave-for-covid-19 Under the Families First Coronavirus Response Act, employers can grant paid leave for an employee to take care of their health needs related to COVID -19 or to care for their family members. This relief helps ensure employees are not forced … Read More
Employee retention credit available for businesses affected by COVID-19
The following article was written by the IRS. View the original source here: https://www.irs.gov/newsroom/employee-retention-credit-available-for-businesses-affected-by-covid-19 The employee retention credit is designed to encourage businesses to keep employees on their payroll. The amount of the credit is 50% of qualified wages paid up to an annual limit of $10,000, which equals a maximum credit amount of $5,000 for each employee … Read More
![[Interview] The Vertical Coronavirus Pandemic](https://www.krostcpas.com/wp-content/uploads/Interview-The-Vertical-Coronavirus-Pandemic.jpg "[Interview] The Vertical Coronavirus Pandemic")
[Interview] The Vertical Coronavirus Pandemic
As Featured in Accounting Today In some ways, the impact of the coronavirus is universal, but a surprising number of industries face very specific and unique problems. Fortunately, they have specialized CPAs and accountants to give them advice and help that is specific to their situations. Here, four accounting firms share the problems their clients … Read More
Important Update on Paycheck Protection Program (PPP) Loan Forgiveness
On Friday, May 15th, the Small Business Administration (SBA), in consultation with the Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application. The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the CARES Act. SBA will also … Read More
Certification, Good Faith, Safe Harbor and the Employee Retention Credit
The Department of Treasury has been updating its Frequently Asked Questions (FAQs) on the Paycheck Protection Program (PPP) on a regular basis. These FAQs may help you decide if you should return your PPP loan in full and still qualify for the Employee Retention Credit. The PPP loan must be repaid or returned by Monday, … Read More
![[Webinar Replay] PPP – Calculating, Optimizing and Tracking Use of Funds to Maximize Loan Forgiveness](https://www.krostcpas.com/wp-content/uploads/PPP-Demo-Webinar-Replay.jpg "[Webinar Replay] PPP – Calculating, Optimizing and Tracking Use of Funds to Maximize Loan Forgiveness")
[Webinar Replay] PPP – Calculating, Optimizing and Tracking Use of Funds to Maximize Loan Forgiveness
If you missed our webinar led by Paren Knadjian, Head of M&A and Capital Markets at KROST, there is a recording available. This webinar gives an update on the latest guidance on the use of PPP loan proceeds, best practices for the use of these loans, and a demonstration of the KROST PPP Budgeting and … Read More
Jean Hagan Featured on the SoCal Restaurant Radio Show
Jean Hagan, Principal and leader of KROST’s restaurant practice, was featured on the SoCal Restaurant radio show hosted by Andy Harris on May 9th, 2020. 48,000 listeners and hundreds of live streamers tuned in as Jean discussed the future of dining out and provided sound advice on how restaurants should gradually prepare for the return … Read More
KROST CPAs & Consultants Provides Much-Needed Help to Businesses Affected by the Economic Downturn Caused by the COVID-19 Pandemic
Los Angeles, CA – May 11, 2020 – Los Angeles-based firm, KROST CPAs & Consultants, has launched several programs to assist businesses during the Coronavirus pandemic. Since April 2020, the firm has assisted hundreds of businesses and individuals through the development of COVID-19 resources that have guided them through the process of choosing, applying, and … Read More
![[Webinar] PPP – Calculating, Optimizing and Tracking Use of Funds to Maximize Loan Forgiveness](https://www.krostcpas.com/wp-content/uploads/PPP-Demo-Webinar-1.jpg "[Webinar] PPP – Calculating, Optimizing and Tracking Use of Funds to Maximize Loan Forgiveness")
[Webinar] PPP – Calculating, Optimizing and Tracking Use of Funds to Maximize Loan Forgiveness
Join us on Wednesday, May 13th at 10 AM, as we host a webinar led by Paren Knadjian, Head of M&A and Capital Markets at KROST. This webinar will give an update on the latest guidance on the use of PPP loan proceeds, best practices for the use of these loans, and will give a … Read More
![[Updated] Main Street Loan Programs – Terms and Loan Comparison Chart](https://www.krostcpas.com/wp-content/uploads/Updated-Main-Street-Loan-Programs-–-Terms-and-Loan-Comparison-Chart-.jpg "[Updated] Main Street Loan Programs – Terms and Loan Comparison Chart")
[Updated] Main Street Loan Programs – Terms and Loan Comparison Chart
On April 30th, 2020, the Federal Reserve Board announced it is expanding the scope and eligibility for the Main Street Lending Program previously announced on April 9th. As part of its broad effort to support the economy, the Federal Reserve developed the Main Street Lending Program to help credit flow to small and medium-sized businesses … Read More
PPP Loans Can Be Forgiven But At What Expense?
The IRS released Notice 2020-32, which makes the portion of a PPP loan that is forgiven, not quite as attractive as it originally appeared. Typically, when debt is forgiven, the amount is included in the income of the borrower. The CARES Act specifically addressed this by including Section 1106(i) which states that “Any amount which … Read More
The Streamlined Offshore Disclosure Procedures
It is not uncommon for U.S. citizens or Green Card holders to come across a situation where they realize they haven’t been entirely compliant with U.S. tax filing requirements. The filing requirements, especially for foreign assets and income, have become so complex that even some tax practitioners don’t know where to start. If you feel … Read More
Paycheck Protection Program and Health Care Enhancement Act (PPPHCE Act) Provides Additional Funding for PPP and EIDL Loans
On April 24th, 2020, President Trump signed into law H.R. 266, known as the Paycheck Protection Program and Health Care Enhancement Act (PPPHCE Act) that will re-open the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program by allocating additional funds to both. The Act makes $484 billion of additional funding available … Read More
![[Updated] Senate and House Pass Bill That Provides Additional Funding for PPP and EIDL Loans](https://www.krostcpas.com/wp-content/uploads/Senate-and-House-Pass-Bill-That-Provides-Additional-Funding-for-PPP-and-EIDL-Loans.jpg "[Updated] Senate and House Pass Bill That Provides Additional Funding for PPP and EIDL Loans")
[Updated] Senate and House Pass Bill That Provides Additional Funding for PPP and EIDL Loans
As reported widely, the US Senate and House is taking action to re-open the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program by allocating additional funds to both. The Senate and House have passed a Bill, in the form of an amendment to the CARES Act, that makes $484 billion of … Read More
Business Tax Provisions – Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
The Novel Coronavirus has had a huge impact all over the world. People in quarantine are forced to stay home, many kids are now homeschooled, and businesses are closed. To help Americans get through this crisis, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into effect on March 27, 2020. The … Read More
IRS Tax Tip: COVID-19 Economic Impact Payments – Beware of Scams
The following article is written by the IRS. View the original source here: https://www.irs.gov/newsroom/taxpayers-should-be-aware-of-coronavirus-related-scams Taxpayers should be on the lookout for IRS impersonation calls, texts and email phishing attempts about the coronavirus or COVID-19 Economic Impact Payments. These scams can lead to tax-related fraud and identity theft. Here’s what taxpayers should know: The IRS will … Read More
The Main Street New Loan Facility (MSNLF) vs the Main Street Expanded Loan Facility (MSELF) – Comparison Chart
On April 9, 2020, the Federal Reserve announced additional actions to provide up to $2.3 trillion in loans to support the economy. This funding is aimed at small to medium-size businesses and state and local governments. Part of these new measures included the announcement of the Main Street Business Lending Program consisting of the Main … Read More
Federal Reserve and Dept of Treasury Announce Additional Loan Programs for Businesses
On April 9, 2020, the Federal Reserve announced additional actions to provide up to $2.3 trillion in loans to support the economy. This funding is aimed at assisting employers of all sizes and bolster the ability of state and local governments to deliver critical services during the COVID-19 pandemic. Specifically, they announced: The Paycheck Protection … Read More
Restaurant Update: Into the Great Beyond
As discussions about the success of flattening the curve of the pandemic are encouraging everyone that we will get through this eventually, now the page turns to how do we get reopened and get our businesses back up and operating. The first thing everyone has to do is recognize that the restaurant industry after this … Read More
![[Updated] The Economic Injury Disaster Loan (EIDL) Program vs The Paycheck Protection Program (PPP) – Comparison Chart](https://www.krostcpas.com/wp-content/uploads/The-Economic-Injury-Disaster-Loan-EIDL-Program-vs-The-Paycheck-Protection-Program-PPP-1.jpg "[Updated] The Economic Injury Disaster Loan (EIDL) Program vs The Paycheck Protection Program (PPP) – Comparison Chart")
[Updated] The Economic Injury Disaster Loan (EIDL) Program vs The Paycheck Protection Program (PPP) – Comparison Chart
Updated on April 7, 2020 – Following the declaration of a national emergency to combat the Coronavirus (COVID-19) pandemic, the Small Business Administration (SBA) launched the Economic Injury Disaster Loan Assistance (EIDL) program for small business owners in all US states, Washington D.C., and other US territories. EIDL loans are now available. In addition to … Read More
Qualifying Requirements for Refundable Employee Retention Credit
Eligible Employers Eligible employers can receive a refundable payroll tax credit of 50% of wages paid to employees between March 13th, 2020 and December 31st, 2020. An eligible Employer may not receive the Employee Retention Credit if the Eligible Employer receives a Small Business Interruption Loan under the Paycheck Protection Program that is authorized under … Read More
The Difference Between Tax Credits Provided by FFCRA and CARES Act
During the coronavirus pandemic, helping Americans keep their job has been a major focus for Congress. Both the Families First Coronavirus Response Act (FFCRA), signed into effect on March 18, 2020, and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, provide payroll-related credit to help small businesses to … Read More
California Governor Newsom Announces $50 Million in Loan Guarantees for California Small Businesses that May Not be Eligible For Federal Relief
On April 2nd, 2020, California Governor Gavin Newsom unveiled a series of new measures to aid small businesses and help California workers who have lost work due to the COVID-19 Pandemic. In addition to encouraging small businesses to apply to the federal loans available, the Governor also announced that the state is allocating $50 million … Read More
Individual Tax Provisions – Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
The Novel Coronavirus has had a huge impact all over the world. People in quarantine are forced to stay home, kids are now homeschooled, and businesses are closed. To help Americans get through this crisis, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into effect on March 27, 2020. The Act … Read More
Get Answers to Your Questions: COVID-19 Resource Center Now Available
Big news today as President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This $2 Trillion stimulus bill provides much needed financial support to businesses and individuals impacted by COVID-19. We will be providing a full analysis of the bill in the coming days. That said, we know you have lots of … Read More
![[Update] Paid Family Leave and Sick Leave Amendments as Part of the Families First Coronavirus Response Act (FFCRA)](https://www.krostcpas.com/wp-content/uploads/FFCRA.jpg "[Update] Paid Family Leave and Sick Leave Amendments as Part of the Families First Coronavirus Response Act (FFCRA)")
[Update] Paid Family Leave and Sick Leave Amendments as Part of the Families First Coronavirus Response Act (FFCRA)
On March 18, 2020, President Trump signed into law H.R. 6201: The Families First Coronavirus Response Act. The Act has many provisions, including increasing Medicaid funding, expanding unemployment benefits, and providing Coronavirus testing at no cost to consumers. The Act also includes an amendment to the Family and Medical Leave Act of 1993 – referred … Read More
![[UPDATED] How to Secure an SBA Loan if Your Business is Impacted by the Coronavirus (COVID-19)](https://www.krostcpas.com/wp-content/uploads/How-to-Secure-an-SBA-Loan-if-Your-Business-is-Impacted-by-the-Coronavirus-COVID-19.jpg "[UPDATED] How to Secure an SBA Loan if Your Business is Impacted by the Coronavirus (COVID-19)")
[UPDATED] How to Secure an SBA Loan if Your Business is Impacted by the Coronavirus (COVID-19)
As of Friday, March 13, 2020, President Trump declared a national emergency to combat the Coronavirus (COVID-19). Businesses across the nation may be suffering dramatic losses due to the unprecedented response to the virus. Health officials are recommending social distancing guidelines, and travel has severely decreased, among other restrictions, which has caused business to slow … Read More
Real Estate Industry Update: Mortgage Rates Remain Low
Amid all of the chaos of the last two weeks and the severe impact COVID-19 has had on many businesses and individuals, one bright spot is shining through: mortgage rates are low. Thanks to the Federal Reserve dropping the federal funds rate to 0% in response to the coronavirus pandemic, refinancing now may be a … Read More
Having Trouble Paying Your Mortgage Due to COVID-19?
Good news. President Trump announced last week that the Department of Housing and Urban Development would suspend all “foreclosures and evictions” through the end of April, but only those with an FHA-insured mortgage are eligible. In addition, many lenders are offering relief options to their borrowers, including forbearance options (up to 12 months), waived fees, … Read More
![[Update] Tax Deadlines Pushed Back: Federal and California Measures to Help Taxpayers through COVID-19 Pandemic](https://www.krostcpas.com/wp-content/uploads/How-Will-The-COVID-19-Affect-Your-Tax-Return-Deadline-1.jpg "[Update] Tax Deadlines Pushed Back: Federal and California Measures to Help Taxpayers through COVID-19 Pandemic")
[Update] Tax Deadlines Pushed Back: Federal and California Measures to Help Taxpayers through COVID-19 Pandemic
The impact of coronavirus has been increasing rapidly. While Congress is still working on a proposal to stimulate the economy, both the federal government and the State of California have announced ways to help people get through this difficult time. Federal President Trump announced on March 11, 2020 that he would direct the Treasury to … Read More
Coronavirus and Its Impact on Financial Reporting
Nothing has gripped us quite like the Coronavirus (COVID-19). It has begun to affect all facets of life, from travel bans, school closures, meetings, and even financial reporting. Generally Accepted Accounting Principles (GAAP) has an Accounting Standard Codification (ASC) that addresses unforeseen circumstances occurring after the balance sheet date but before the audit is issued. … Read More
COVID-19 Announcement
We understand this has been an extremely stressful time over the last ten days. The world has seemingly changed overnight with the global pandemic coupled with the meltdown of the financial markets. First and foremost, we need to consider the health and safety of our family & friends, team members, clients, and the community over heightened concerns about the Coronavirus (COVID-19). We have been closely monitoring the CDC’s recommendations to limit person-to-person contact. Therefore, we have initiated a policy that will allow us to remain fully operational while maintaining social distance, including many of our team members working remotely and our offices undergoing increased cleanings, as preventative measures.
During this time, you can expect the same level of service as we continue to move through busy season. For your safety as well as those of our team, we ask that you limit your interaction with us to phone calls and emails. To allow for recommended social distancing, we want to limit office visits and in-person meetings. We will be in touch if a meeting was scheduled that needs to be adjusted to a phone call or video conference meeting. Finally, we ask that you send us any documentation or files through our secure sharefile portal that can be found on KROSTCPAs.com.
Beyond our office procedures, there are several initiatives that we want to make you aware of as you or your business navigate the impacts of this pandemic. First, most of you probably heard that yesterday Secretary of the Treasury Steven Mnuchin announced that taxpayers can delay paying their income tax for up to 90 days (60 days for CA). This applies to individual tax payments up to $1M and corporate tax payments up to $10M. Also, Governor Gavin Newsom has extended the state and local tax filing deadlines for California, waiving fees for late filing. And maybe most importantly, local businesses now have the option to apply for Small Business Loans during this time of public emergency, so please reach out to us for guidance, as necessary.
KROST Quarterly Magazine: The Technology Issue is Now Available!
We are happy to announce the release of our newest quarterly magazine! The Technology Issue highlights some of the hot topics including trends in media & entertainment, privacy laws, AdTech, quantum computing, and more. What You’ll Find Inside this Issue: Streaming Wars: Technology Trends in Media & Entertainment By Paren Knadjian Tech Company Compensation: Unraveling … Read More
California Sets Threshold for Sales Tax
The South Dakota v. Wayfair 2018 case overturned the physical presence test, meaning out-of-state retailers selling to South Dakota residents are obligated to collect sales tax even if they do not have a physical presence in the state. It was expected that many states would issue laws similar to South Dakota and California has done … Read More
Client Accounting and Advisory Services: The Benefits of Outsourced Accounting vs. In-House
Our Principal, Stacey R. Korman, CPA, MST, earned a certificate in AICPA’s Client Accounting Advisory Services course. We had the chance to sit down with Stacey to hear her experience. Q: What is Client Accounting and Advisory Services (CAAS)? Client Accounting and Advisory Services (CAAS) is a certificate program that has been developed by the … Read More
A Rare Day x KROST CPAs
We are thrilled to announce that we are partnering with The Be Rare Foundation for their 3rd annual women’s summit: A RARE DAY — happening on March 7, 2020 (Int’l Women’s Weekend). A RARE DAY is a celebration and conversation about the future of females in digital media, fashion, beauty and beyond. We are excited … Read More
KROST Restaurant Seminar: Protecting Your Business
KROST is hosting a dynamic restaurant seminar, Restaurant Management: Protecting Your Business, on March 2nd, 2020 from 2:00 PM – 4:00 PM with guest speakers Corbin Wade of Hub International and Jesse Caryl of BCK Legal. The seminar will be followed by a cocktail reception sponsored by Hub International and BCK Legal from 4:00 PM … Read More
CalSavers Program Information
What Gov. Jerry Brown signed into law Senate Bill 1234, also known as CalSavers, on 9/29/2016. CalSavers mandates all California employers offer either a retirement plan for their employees OR join the CalSavers program. CalSavers defines employees as anyone over 18, paid by W-2, and worked for 30 days. Tiered Deadlines June 30, 2020 Businesses … Read More
Potential Inventory Write-off for Restaurants in Light of New Tax Law
The overhaul of the Tax Cuts and Jobs Act (TCJA) has proven to be a challenge since it took effect in 2018. As tax advisors struggle to understand the implications for their clients, the resource-deprived Internal Revenue Service has made efforts to issue guidance on how to implement many of the complex provisions. One of … Read More
Real Estate Market Update – January 2020
Presented by Philip Clark, CFP®, January 2020 As 2019 ended, home loans were cheaper than they were at the start of the year. Looking at Freddie Mac’s Primary Mortgage Market Survey, the average interest rate on a 30-year, fixed-rate mortgage was 3.74% on December 26, which was up from 3.68% a month earlier, but well … Read More
KROST Kicks Off the Year by Announcing Merger with BPE&H an Accountancy Corporation
Pasadena/Woodland Hills, CA. – KROST CPAs and Consultants, a firm based out of Los Angeles, has merged in BPE&H out of Woodland Hills effective January 1, 2020. Seven principals will join the leadership team at KROST, including Scott Eisner, Martin Belak-Berger, Bob Price, Phil D’Amico, Scott Gilmore; and founding BPE&H principals Jerry Block and Jane … Read More
Individual Tax Planning Moves That Will Help Lower Your Tax Bill
As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Year-end planning for 2019 takes place against the backdrop of the 2017 Tax Cuts and Jobs Act that had major changes in the tax … Read More
Business Tax Planning Ideas That May Help You Save Tax Dollars
The last few months of the year are important and year-end tax planning may allow you to change the entire course of your business. As 2020 approaches, it is time to develop, finalize, and undertake a year-end tax planning strategy. Businesses that have not yet explored year-end tax planning should take an immediate inventory of … Read More
How Managing Food Waste Can Impact Your Profitability and the World Around You
Every day, restaurants around the country throw away thousands and thousands of pounds of food.1 Leftovers from guest plates, scraps from prepped items, leftover rice, potatoes, bread rolls, soups and a myriad of other items are routinely discarded in surprising bulk at the end of each shift. There are many inherent benefits to controlling food … Read More
Loan-Out Corporations: To Be or Not To Be
This is a preview of one of the articles in the new KROST Quarterly Sports & Entertainment Issue, titled “Loan-Out Corporations: To Be or Not To Be” by Douglas Venturelli, Esq. with guest author Jonathan Louie, CPA. With the passing of the Tax Cuts and Jobs Act (TCJA) of 2017, many actors, writers, directors, and … Read More
Jean Hagan Brings Decades of Restaurant Operations Experience to the Culinary Institute of America as Newly Appointed Adjunct Professor
Jean Hagan, Principal of KROST CPAs & Consultants and leader of the firm’s restaurant consulting practice, has recently taken on an additional title as Adjunct Professor of Restaurant Operations and Management Strategies at the Culinary Institute of America (CIA). Her first course, Operations and Management Strategies for the Restaurateur, began this fall. Jean teaches the … Read More
Top 6 Resources for Taxpayers Who Donate to Charity
Taxpayers who donate to charity should check out the IRS’ resources to become aware of the tax regulations. Below are the top 6 IRS resources for taxpayers making donations: Tax Exempt Organization Search This tool can be used by taxpayers to find out if the organization they have contributed to qualifies as a charitable organization … Read More
5 Tips for Choosing the Right Business Manager
This is a preview of one of the articles in the new KROST Quarterly Sports & Entertainment Issue, titled “5 Tips for Choosing the Right Business Manager” by Stacey Korman, CPA, MST. Professional actors, athletes, authors, and musicians have one thing in common: they are all typically high-net-worth individuals with complex financial needs. As a … Read More
Keith Hamasaki, CPA, Named Co-Chair of the PrimeGlobal Manufacturing & Distribution Special Interest Group
Los Angeles, California – November 4, 2019 – KROST’s Assurance & Advisory Director, Keith Hamasaki, CPA, has been appointed to Co-Chair of the PrimeGlobal Manufacturing & Distribution Special Interest Group (SIG). Keith has been a member of PrimeGlobal since he joined KROST in 2016. As the newly named Co-Chair, he is responsible for bringing together … Read More
Qualified Business Income Deduction and the Entertainment Industry
This is a preview of one of the articles in the new KROST Quarterly Sports & Entertainment Issue, titled “Qualified Business Income Deduction and the Entertainment Industry” by Ronique Davis, CPA. The Tax Cuts and Jobs Act (TCJA) has had an impact on many industries since it was enacted in December 2017, and the entertainment … Read More
Game-Changing Tax Matters for Athletes
This is a preview of one of the articles in the new KROST Quarterly Sports & Entertainment Issue, titled “Game-Changing Tax Matters for Athletes” by Brad Pauley, CPA. There were many deductions professional athletes were able to take under the old tax law, however, under the new law, deductions taken in previous years are no … Read More
CalCPA Los Angeles Chapter Names Keith Hamasaki, CPA, Vice President
Los Angeles, California – July 31, 2019 – Our Assurance and Advisory Director, Keith Hamasaki, CPA has been elected Vice President of the California Society of Certified Public Accountants (CalCPA) Los Angeles Chapter. He joins three other Vice Presidents in the chapter. Keith served as a board member for the CalCPA LA Chapter since 2015 … Read More
KROST Quarterly Magazine: The Sports & Entertainment Issue is Now Available!
We are happy to announce the release of our newest quarterly magazine! The Sports & Entertainment Issue highlights some of the hot topics pertaining to sports & entertainment professionals such as tax issues for athletes, Loan-Out Corporations, Qualified Business Income Deduction, and more. What You’ll Find Inside this Issue: Game-Changing Tax Matters for Athletes By … Read More
FinTech Trends to Watch for in 2020
Wondering what’s in store for FinTech in 2020? M&A and Capital Markets Practice Leader and KROST’s Technology Industry group leader Paren Knadjian offers insight into FinTech trends to watch for in the coming year. “The use of Artificial Intelligence (AI), Machine Learning (ML), and Natural Language Processing (NLP) will have the same level of impact … Read More
KROST CPAs & Consultants Partners with Nationally Recognized Executive Chef Phil Kastel
Los Angeles-based tax and accounting firm, KROST, recently brought on restaurant industry titan Chef Phil Kastel (co-creator of nationally recognized Public School gastropubs) who will serve as the firm’s Restaurant and Culinary Consultant. Established in 1939, KROST has a long history in the restaurant space having pioneered accounting technology that was the precursor to what … Read More
Paren Knadjian is Attending the 2019 ACG LA Business Conference
Our Mergers and Acquisitions practice leader, Paren Knadjian, will be attending the Association for Corporate Growth(ACG) Los Angeles Business Conference. Join us for the conference from September 17th to September 18th at the The Beverly Hilton Hotel located at 9876 Wilshire Blvd, Beverly Hills, CA. ≫Register The ACG LA conference will bring together business advisors, deal … Read More
New Capital Gains Treatment for Carried Interests
Carried interests have allowed investment fund managers to be compensated for services with income that qualifies as long-term capital gains, which is taxed at a lower rate than ordinary income. Numerous efforts have been made during the last two decades to cut back or eliminate the favorable tax treatment of carried interests by taxing all … Read More
Budget Service for 2020
Every successful restaurant operator knows that developing an annual budget is a time-consuming, tedious project. Advantages of having an annual budget include being able to anticipate expenses, set targets for growing the business and staying within financial limits. A restaurant budget will help you recover from unexpected road-blocks, plan for profitability and potential challenges. KROST’s … Read More
Paren Knadjian Speaking at the Private Directors’ Association
Our Mergers and Acquisitions practice leader, Paren Knadjian, will be speaking at the Private Directors’ Association to discuss the role of board directors in M&A transactions. Join us for the panel the morning of September 12th from 7:30am – 9:30am at the Law Offices of Polsinelli located at 2049 Century Park East, Suite 2900. Breakfast … Read More
Trader Tax Status: Do You Qualify?
Tax staff Randall Poe recently published an article for our newest KROST Quarterly Magazine: The Financial Services Issue titled “Trader Tax Status: Do You Qualify?”. WHAT IS TRADER TAX STATUS? Trader tax status is a special set of rules that allow traders to treat trading activity as an ordinary business. Trader status allows taxpayers to … Read More
2019 FinTech M&A and Market Report
M&A and Capital Markets Practice Leader Paren Knadjian recently published an article for our newest KROST Quarterly Magazine: The Financial Services Issue titled “FinTech M&A and Market Report H1 2019”. The Financial Technology market (FinTech) continues to grow and flourish in 2019 with Venture Capital (VC) aggressively funding start-ups, Private Equity (PE) firms active in … Read More
The Rehabilitation Tax Credit: What Historic Building Owners Should Know
The Historic Tax Credit (HTC) program, also known as the Rehabilitation Tax Credit, encourages individuals and business to invest in the rehabilitation of historic buildings. The tax reform legislation passed in December of 2017 allows these building owners to claim 20 percent of eligible improvement expenses against their federal tax liability. It is an incentive … Read More
The Qualified Small Business Stock Gain Exclusion
Tax Manager Matthew Weber, CPA, MAcc recently published an article for our newest KROST Quarterly Magazine: The Financial Services Issue titled “The Qualified Small Business Stock Gain Exclusion”. If you sell stock that has appreciated in value, then you must recognize a taxable capital gain. Sounds straightforward, right? While that may be true most of … Read More
KROST CPAs & Consultants Named INSIDE Public Accounting Best of the Best and Top 200 Firm
INSIDE Public Accounting (IPA) named KROST CPAs & Consultants and its affiliated tax consulting practice Best of the Best and Top 200 Firm for the fourth year in a row. The firm placed 109th on the prestigious top 200 list, a substantial leap from 157th in 2016 when it first made the rankings. Recipients of … Read More
Outsourcing Accounting for Family Offices
Accounting Director Stacey R. Korman, CPA, MST recently published an article for our newest KROST Quarterly Magazine: The Financial Services Issue titled “Outsourcing Accounting for Family Offices”. The existence of the Family Office structure dates back millennia to the Roman Empire, where wealthy households utilized an administrator referred to as the major domus, or Head … Read More
Mid-Year Tip Check
It’s time to do a short analysis of your status, regarding tip reporting. The annual filing form 8027 for tipping establishments is calculated on an annual basis-reported to the IRS in February. A mid-year tip check gives you some time to correct any issues you may have with individual employees or your employee group. As … Read More
KROST Quarterly Magazine: The Financial Services Issue is Now Available!
We are happy to announce the release of our newest quarterly magazine! The Financial Services Issue highlights some of the hot topics in financial services including Sales Tax Nexus, QSBS, Carried Interests, Trader Tax Status, Family Office, and more. What You’ll Find Inside this Issue: The Qualified Small Business Stock Gain Exclusion by Matthew Weber, … Read More
Philip Clark, CFP® Joins Pasadena Tournament of Roses® Association
Our Wealth Management Director Philip Clark, CFP®, recently joined the Pasadena Tournament of Roses® Association, which hosts the Rose Parade and Rose Bowl football game every New Year’s Day in Pasadena, California. As one of 66 new members the association welcomed this year, Phil will contribute to the planning of this century-old tradition. KROST’s Principal … Read More
![[Video] M&A Buy-Side Services](https://www.krostcpas.com/wp-content/uploads/MA-Video-Series-–-Part-2-of-4-3.jpg "[Video] M&A Buy-Side Services")
[Video] M&A Buy-Side Services
In this last video in our series, M&A Practice Leader, Paren Knadjian, gives a basic overview of our buy-side services. In this type of transaction, we represent clients who are interested in acquiring a company and advise them on the following: Helping to decide what kind of criteria is pertinent to the selection of the … Read More
Minimum Wage Increases 2019
On July 1, 2019, the minimum wage will increase in the cities of Los Angeles & Santa Monica, and the County of Los Angeles. The City and County of Los Angeles Minimum Wage Ordinances both mandated annual wage increases until it reaches $15.00 per hour on July 1,2020. Small businesses (less than 25 employees) have … Read More
Cost Segregation Studies for the Hospitality Industry: Does it Increase the Likelihood of Audit?
Below is a preview of one of the articles in the new KROST Quarterly Hospitality Issue, “Cost Segregation Studies for the Hospitality Industry: Does it Increase the Likelihood of Audit?” by Guest Contributor Harry Sahi, Manager – Cost Segregation, KBKG. “A common concern raised by business owners in the hospitality industry regarding cost segregation studies … Read More
New Laws Impacting Restauranteurs – What You Need to Know
Every April, KROST travels to Sacramento to participate in the California Restaurant Association’s Restaurant Day at the Capitol. This year, Jean Hagan (Principal) and Robert Benson (Manager – Restaurant Operations) attended. This annual event affords KROST and the California Restaurant Association the opportunity to lobby directly to California’s legislators about pending legislative bills that impact … Read More
California’s Wage Order 7: What You Need to Know
Below is a preview of one of the articles in the new KROST Quarterly Hospitality Issue, “California’s Wage Order 7: What You Need to Know” by By Gina Gross – KROST Restaurant Accounting & Consulting. “Many restaurants have on-call policies that require employees to call in to find out whether they need to work their … Read More
The Restaurant Technology Industry: Trends and Funding
Below is a preview of one of the articles in the new KROST Quarterly Hospitality Issue, “The Restaurant Technology Industry: Trends and Funding” by Paren Knadjian, Practice Leader – M&A and Capital Markets. “Over the last ten years or more, customers have changed how they discover, book, socialize, interact, and pay at restaurants. As customers … Read More
![[Video] What Is Involved in an M&A Sell-Side Transaction?](https://www.krostcpas.com/wp-content/uploads/MA-Video-Series-–-Part-2-of-4-4.jpg "[Video] What Is Involved in an M&A Sell-Side Transaction?")
[Video] What Is Involved in an M&A Sell-Side Transaction?
In our next M&A video in the series, Paren Knadjian talks about our sell-side advisory services and process, which involves working with business owners to maximize the value of a potential transaction and ensure its success. Sell-side advisory applies to any company that is interested in selling a part or all of their business. Here … Read More
Tax Breaks: The Next Great Wine Pairing
Below is a preview of one of the articles in the new KROST Quarterly Hospitality Issue, “Tax Breaks: The Next Great Wine Pairing” by Guest Contributor Tetyana Guguchkina, Manager – Research & Development Tax Credit Services, KBKG. “While California has dominated the wine industry for decades, new regions across the United States are making waves … Read More
A Year to Celebrate: KROST Named #17 Among Accounting Today’s Top 100 Regional Leaders
KROST CPAs & Consultants recently ranked seventeenth out of Accounting Today’s 2019 Top 100 Regional Leaders in the West. The recognition is given to firms based on total number of employees, partners, offices, gross revenue, and percentage change year over year. Accounting Today divides the U.S. into 10 regions and establishes benchmarking data to calculate … Read More
Risky Business: Safeguarding Your most Valuable Assets
Below is a preview of one of the articles in the new KROST Quarterly Hospitality Issue, “Risky Business: Safeguarding Your most Valuable Assets” by Steve Chhuor, Manager – Assurance & Advisory. “Most businesses understand that accepting card payments is an option that attracts customers who need a quick and easy payment option. The shift of … Read More
Sales Tax Compliance for California Restaurants
Below is a preview of one of the articles in the new KROST Quarterly Hospitality Issue, “The Battle to be a Profitable Restaurant: How to Deal with Employee Theft” by Aric Wong, CPA, Manager – Tax. “With 72,000+ restaurants in California, the state does everything possible to ensure taxes are properly reported, collected, and paid … Read More
The IRS Recommends Working with a Cybersecurity Professional: Why You Should Heed Their Advice
Consulting with a cybersecurity professional should be a top priority for tax businesses to protect their clients’ data. Tax preparers deal with a large amount of sensitive information including social security numbers, bank account numbers, EINs, etc. This makes them perfect targets for cybercriminals whose main objective is to file fraudulent tax returns. “As cybercriminals … Read More
The Battle to be a Profitable Restaurant: How to Deal with Employee Theft
Did you know that 75% of employees have stolen at least once from their employer? Learn more in the new article “The Battle to be a Profitable Restaurant: How to Deal with Employee Theft” by Robert A. Benson, Manager – Restaurant Operations that appears in the newest issue of KROST Quarterly. “Most restaurant operators are … Read More
BOE Sales and Use Tax Rate Increase Effective April 1, 2019
Effective April 1st, 2019, a district tax increase will be applied in several localities throughout California. The rate increase is due to the passing of numerous Measures in various counties on November 6, 2018 to fund several improvements such as street improvements, maintain essential services, neighborhood safety, disaster preparedness, among others. To all restaurant operators, … Read More
M&A Video Series – Part 2 of 4
As you may know, KROST offers M&A and Capital Markets Service. Through our resources, experience, relationships, and by running a proven process, we can identify more parties to engage. This increases bargaining power and improves the chances of a successful close. Paren Knadjian leads the practice and comes with over 15 years of experience in … Read More
Mara Garcia, CPA, Nominated for CalCPA’s 2019 Women to Watch
KROST’s Assurance & Advisory Manager, Mara Garcia, CPA, was nominated for CalCPA’s 2019 Women to Watch Award. Mara Delivers Focus, Drive, and a Team Attitude Mara has spent her career translating complex concepts into understandable ideas, so her clients know where they stand in their business. She has successfully helped clients increase efficiencies in business … Read More
2018 Tax Planning – TCJA Impact on Cash Method of Accounting
Enacted on December 22, 2017, the Tax Cuts and Jobs Act (TCJA) was hailed as the largest major tax reform for the past three decades. In particular, the TCJA contains a series of favorable accounting method reforms that will impact countless of business taxpayers such as the use of cash method of accounting and the … Read More
Tax Basis and At-Risk Loss Limitations for Individual Partners and S-Corp Shareholders
Taxpayers constantly feel entitled to deduct losses from their businesses and investments. However, taxpayers need to be aware of the multiple loss rules provided by the Internal Revenue Code that limit the ability to deduct these losses from their trade or businesses. Taxpayers need to take their losses through four different loss limitations before one … Read More
Updates to Qualified Improvement Property
Below is a preview of one of the articles in the new KROST QUARTERLY Real Estate Issue, titled Updates to Qualified Improvement Property by guest author, Harry Sahi, Manager – Cost Segregation Services, KBKG. With the 2017 tax year behind us, tax professionals are laser-focused on the various new rules presented by the recent Tax … Read More
Special Notice: California’s New Sales and Use Tax Rates Operative April 1, 2019
The California Department of Tax and Fee Administration (CDTFA) has sent out a special notice indicating that the sales and use tax rates for certain districts will increase effective April 1, 2019. The tax rate changes apply only within the indicated city or county limits. To find the specific tax rate for your area or … Read More
Client Spotlight: Mamal Moinpour
Below is a preview of one of the articles in the new KROST QUARTERLY Real Estate Issue, titled Client Spotlight: Mamal Moinpour by Jonathan Louie, CPA. Recently, we had the opportunity to interview one of our tax clients, Mamal Moinpour, who owns real estate in the Greater Los Angeles and across the U.S. He is … Read More
KROST Celebrates 80 Years of Success in Pasadena
KROST is proud to announce the celebration of its 80th anniversary. Since 1939, the firm has assisted thousands of businesses and individuals to reach their financial goals through tax, accounting, and consulting services. KROST is headquartered in Pasadena, California with four strategic locations throughout Greater Los Angeles. In 2018, KROST experienced outstanding growth of 31.41% … Read More
New Partnership Audit Rules – “Centralized Partnership Audit Rules”
The 2015 Bipartisan Budget Act brought changes to partnership audit rules beginning with taxable years 1/1/18. Under the old “TEFRA” rules, if an item on a partnership tax return was being audited, the audit would extend to the partners individually. The partner’s individual tax returns would be under audit at that point. Under the new … Read More
The Battle to Be a Profitable Restaurant: How to Deal With Employee Theft
Most restaurant operators are engaged in a battle from new tax laws that adversely impact sales, to protect margins from increasing labor costs and food prices, and accounting for the added cost of delivery (driven by increased demand). Most of these examples are areas that are beyond an operator’s control. However, there are opportunities in … Read More
KROST Featured in LABJ: KROST Adds West L.A. Accounting Firm to Roster
KROST was recently featured in the Los Angeles Business Journal article, “KROST Adds West L.A. Accounting Firm to Roster”. Below is a teaser of the article. “Pasadena-based accounting and consultant firm Krost has purchased West L.A.-based Gaynor & Umanoff, according to the firms. Terms of the transaction were not disclosed. Chris Gaynor and Richard Umanoff, Gaynor … Read More
Investor Alert: If You Have Not Heard of DSTs, Time to Take a Look
Below is a preview of one of the articles in the new KROST QUARTERLY Real Estate Issue, titled “Investor Alert: If You Have Not Heard of DSTs, Time to Take a Look” by Jonathan Louie, CPA. In Los Angeles, from September 2007 to May of 2009, the cost of real estate declined by 60%, driving … Read More
Press Release: Women in Leadership – Los Angeles CPA Firm KROST Names So Sum Lee, CPA Principal
Los Angeles, California – February 7, 2019 – Los Angeles-based tax, accounting, and consulting firm, KROST, recently promoted So Sum Lee, CPA to Principal. So Sum, an industry veteran, who has 20 years of experience in tax and accounting, specializes in matters relating to real estate, restaurants, technology, entertainment and wholesale. So Sum joins seven … Read More
Section 45L Tax Credits: The Most Overlooked Tax Credit for Residential Developers
Below is a preview of one of the articles in the new KROST Quarterly Real Estate Issue, titled “Section 45L Tax Credits: The Most Overlooked Tax Credit for Residential Developers” by guest author, Brandon Val Verde, Senior Manager – Green Building Tax Incentives, KBKG. The §45L credit is a federal tax incentive for developers of … Read More
Can OZ Work for You? Accounting for Qualified Opportunity Zone Funds
Below is a preview of one of the articles in the new KROST QUARTERLY Real Estate Issue, titled “Can OZ Work for You?” by Keith Hamasaki, CPA If you’ve ever wanted to help revitalize an economically distressed community but couldn’t justify it economically to generate enough capital from investors, then the new Opportunity Zone Program … Read More
KROST Kicks Off the Year by Announcing Merger with West LA Firm Gaynor & Umanoff
We are pleased to announce the merger of Gaynor & Umanoff, LLP with KROST CPAs and Consultants effective January 1, 2019. This new and exciting change will elevate our service model while maintaining our commitment to you, our clients. Two principals and two directors will join our leadership team, as well as 9 associates, growing … Read More
Is Your Firm Prepared For a Cyberattack?
At KROST, we take cybersecurity seriously. As a CPA firm, we deal with large amounts of sensitive information daily. Understanding cybersecurity will help prevent malware attacks, phishing scams, system hacks and identity theft. We have taken steps to demonstrate our capabilities to manage cybersecurity threats. Assurance & Advisory Director, Keith Hamasaki, CPA, completed AICPA’s 16-hour … Read More
The Impact of TCJA on Cost Segregation & Like-Kind Exchange
Below is a preview of one of the articles in the new KROST QUARTERLY Real Estate Issue, titled “The Impact of TCJA on Cost Segregation & Like-Kind Exchange” by So Sum Lee, CPA: Like-kind exchange has been a popular tax deferral tool for decades. Under IRC 1031, a taxpayer can defer tax on gain from … Read More
Steve Chhuor Certified in Cybersecurity Advisory Services
Recently, KROST team members have devoted time to further their training and expertise in cybersecurity by earning AICPA’s Cybersecurity Advisory Services certificate. Cybersecurity risk is evolving daily and as experts, we need to continually expand our knowledge to properly detect, respond to, mitigate and recover from security risk. Assurance & Advisory Manager, Steve Chhuor, CPA, … Read More
KROST Quarterly: The Real Estate Issue Is Now Available!
We are happy to announce the release of our third quarterly magazine! The Real Estate Issue highlights some of the hot topics in real estate including Opportunity Zones, Delaware Statutory Trusts, Cost Segregation, 1031 Exchange, Green Building Tax Incentives, and Qualified Improvement Property. What You’ll Find Inside this Issue: The Impact of TCJA on Cost … Read More
Ghost Restaurants – Do you know where your delivery food comes from?
If you follow the restaurant and foodservice industry, you have likely noticed an increased demand for takeout and delivery. The addition of 3rd party delivery services simplifying the delivery process has been the major driving force behind the trend of adults, both young and old, enjoying a restaurant meal from the comfort of their own … Read More
Press Release: Green Cuisine Private Label Food Manufacturer Acquired by Fresh & Ready Foods
Pasadena, California – Green Cuisine (San Fernando, CA), a private label food manufacturer, founded and owned by the Sanderson family, was sold to Fresh & Ready Foods (San Fernando, CA), a portfolio company of Akoya Capital (Chicago, IL), Balance Point Capital (Westport, CT) and Plexus Capital (Raleigh, NC), for an undisclosed sum. Pasadena-based consulting firm, … Read More
Donor-Advised Funds
A donor-advised fund (DAF) is a charitable giving vehicle administered by a public charity created to manage charitable donations on behalf of organizations, families, or individuals. A DAF enables a taxpayer to contribute personal assets, including cash, securities, and real estate, to an investment account, in which the assets grow tax-free. The taxpayer receives an … Read More
2018 Business Tax Planning
Businesses that have engaged in year-end tax planning know that as 2019 approaches, it is time to develop, finalize and undertake a year-end tax planning strategy. Businesses that have not yet explored year-end tax planning should take an immediate inventory of their situation and develop a year-end 2018 tax strategy. Our office is ready to … Read More
2018 Individual Tax Planning
As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Year-end planning for 2018 takes place against the backdrop of the new 2017 Tax Cuts and Jobs Act that make major changes in the … Read More
Year End Updates
As the year ends, we need to review some of the changes coming in January 2019. Please see below for a short summary of the issues that affect the restaurant industry in California. Minimum Wage Increase at State Level Current for unincorporated areas of Los Angeles City, Los Angeles County, Malibu, and Santa Monica minimum … Read More
KROST Recognized Honoree of Los Angeles Business Journal’s 2018 Fastest Growing Private Companies
On Wednesday, November 7, 2018, KROST was recognized as one of Los Angeles Business Journals’ Fastest Growing Private Companies in Los Angeles County, with 63% growth in revenue between 2015 and 2017. KROST received this recognition during Los Angeles Business Journal’s 22th annual ceremony to honor a select group of private companies that have … Read More
M&A Video Series – Part 1 of 4
KROST can assist in the mergers and acquisitions process, whether your company is selling, buying, financing or re-capitalizing, to ensure your goals are met. Whether it is strategy, planning, or execution, our comprehensive process and hands-on services provide companies, management, and shareholders with step-by-step guidance, from pre-planning to the finish line and beyond. No matter … Read More
Beyond the Assembly Line: Benefits of Tech Trends in Manufacturing
Below is a preview of one of the articles in the new issue, “Beyond the Assembly Line: Benefits of Tech Trends in Manufacturing” by Mara Garcia: Beyond the Assembly Line: Benefits of Tech Trends in Manufacturing The Association of Equipment Manufacturers listed five manufacturing trends to note in 2018; the internet of things, industry 4.0, … Read More
Southern California M&A in Manufacturing Report – 1st Half, 2018
Below is a preview of one of the articles in the new issue, “Southern California M&A in Manufacturing Report – 1st Half, 2018” by Paren Knadjian, M&A: Southern California M&A in Manufacturing Report – 1st Half, 2018 Overview & Trends Mergers & Acquisition (M&A) activity in manufacturing globally was robust in 2018 with just under … Read More
This Often-Overlooked Federal Benefit Offers Unique Opportunity for Manufacturers
Below is a preview of one of the articles in the new issue, “This Often-Overlooked Federal Benefit Offers Unique Opportunity for Manufacturers” by Guest Contributor Michael Maroney, Senior Manager – R&D Tax Credit Services: This Often-Overlooked Federal Benefit Offers Unique Opportunity for Manufacturers With the R&D Tax Credit now permanent, businesses are taking full advantage … Read More
Openings – The Waterfront/Boardwalk Tacos & 10 Speed Coffee
The Waterfront/Boardwalk Tacos 205 Ocean Front Walk, Los Angeles, CA. We are proud to announce that our client, The Waterfront, is planning their grand opening at the end of October 2018. Their new restaurant and bar will feature a casual cafe that serves all day, along with a to-go component as well, offering coffee, healthy … Read More
Client Profile: Bondi Harvest Cafe
Bondi Harvest Cafe is a casual dining destination inspired by Sydney’s most famous stretch of sand, Bondi Beach. Boasting a food philosophy focusing on locally-sourced produce seasonal cooking and healthy eating, amazing coffee, fresh juice and a laid-back friendly attitude. The space is full of sun and skate artifacts and elements. The natural worn wood, … Read More
New California Laws on Straws & Soda
On October 4th, Gov. Jerry Brown signed two new laws that will dramatically impact restaurant operators. The first law makes California the first state to prohibit full-service restaurants from automatically giving out single-use plastic straws. On the same day, he also signed a bill that requires milk or water to be the default drink sold … Read More
Prop 65 Compliance Notice Reminder
Toward the latter part of the 1980s, Cocktail Big and Die Hard were in the movie theaters, George Michael was telling us to have “Faith” and Wahoo’s Fish Tacos opened its first location in Costa Mesa, California. On the wall in that restaurant, was one of the first chemical warning signs posted because of Prop … Read More
Where Do You Stand with the ACA?
Not complying with the Affordable Care Act, also known as Obamacare, could cost your organization millions of dollars. Being prepared is critical to avoid these penalties that are currently being issued by the IRS, some of them for millions of dollars. Since November 2017, the IRS has been sending Letter 226J penalty notices to certain … Read More
Check Please! Why Restaurants are Going Cashless
Credit cards have long been the preferred payment for goods in the United States, now mobile payment solutions and credit card perks for purchases have paved the way for restaurants to transition to a cashless business. According to the 2016 U.S. Consumer Payment Study conducted by Total System Services (TSYS), 40% of Americans prefer to … Read More
Digital Trends in the Restaurant Business
As wages rise and the unemployment numbers continue at all-time lows, it creates the necessity to embrace technology to enhance the guest experience and drive repeat customers. This particularly impacts quick service, fast casual, and casual dining locations. Here are some of the latest digital trends: Menu Unsurprisingly, the menu is the number one factor … Read More
Manufacturers Beware: The Continued Threat of Cybersecurity Breaches, Hacking & Malware
Below is a preview of one of the articles in the new issue, “Manufacturers Beware: The Continued Threat of Cybersecurity Breaches, Hacking & Malware” by Keith Hamasaki, CPA & Steve Chhuor, CPA: Since the Target data breach in 2013, and Equifax in 2017, there are more and more cybersecurity concerns brought into public view each … Read More
Press Release: KROST Partners with 1st Global to Bring Clients Tax-Optimized Financial Advice
Award-Winning Accounting and Consulting Firm Expands to Offer Holistic Wealth Management to Clients PASADENA, Calif. — Sept. 18, 2018 — KROST, a full-service certified public accounting and consulting firm based in Southern California, today announced a partnership with 1st Global to add wealth management services to its expansive suite of client offerings. KROST will combine … Read More
CFO Awards 2018 Nominees: Eight Insights for CFO of the Year Awards
As the longest serving Los Angeles Business Journal judge, it is amazing to see all of the accomplishments and great talent Los Angeles has to offer. It has been an honor to participate in the LABJ CFO of the Year Awards for the last three years. Over time, I’ve come to recognize some common themes … Read More
Trade Wars: A Whole New World
Below is a preview of one of the articles in the new issue, “Trade Wars: A Whole New World” by Keith Hamasaki, CPA. Trade Wars: A Whole New World Another week, another new list of potential tariffs on imported manufactured products. If you’re manufacturing in China, Europe, Canada, or Mexico the potential trade war will … Read More
IC-DISC Tax Savings on Export Goods or Services
Below is a preview of one of the articles in the new issue, “IC-DISC Tax Savings on Export Goods or Services” by Evelyn Fernandez, CPA, MST: Interest‐Charge Domestic International Sales Corporation (IC‐DISC) is quite a mouthful, which may be a reason why most people don’t know about this tax incentive. Thousands of businesses are not … Read More
KROST Quarterly: Manufacturing Issue Now Available – Cybersecurity, Tax Incentives, Transactions, Trends and More
We are happy to announce the release of our second quarterly magazine! The Manufacturing Issue highlights some of the hot topics in manufacturing including cybersecurity, tax benefits and incentives, technological advances in manufacturing, and trends. What You’ll Find Inside this Issue: Manufacturers Beware: The Continued Threat of Cybersecurity Breaches, Hacking & Malware by Keith Hamasaki, CPA … Read More
Career in Accounting: Audit or Tax
Campus recruiting is a daunting, time consuming and necessary task for students looking to enter public accounting. As a professional on the other side of the table, I can’t tell you the number of times the icebreaker is “audit or tax”. This is a common icebreaker but very few students know the answer, audit or … Read More
KROST Ranks #2 – 2018 INSIDE Public Accounting Top 5 Best of the Best Firms in the Country
Inside Public Accounting (IPA) has awarded KROST, and its affiliated tax consulting practice, another two awards based on their annual INSIDE Public Accounting Survey and Analysis of Firms: • #1 Fastest Growing Best of the Best firm in the country • #2 in the Top 5 Best of the Best firms in the country These … Read More
Robert A. Benson, Manager of Restaurant Operations at KROST, featured on the Tastemaker’s podcast
Robert A. Benson, Manager of Restaurant Operations at KROST, was recently featured on the Tastemaker’s podcast. The show was recorded while our team was at the National Restaurant Association Show with our partners from Restaurant365 earlier this summer. During the episode, Robert talks about his experience in the restaurant industry and the journey that lead … Read More
Budget Service for 2019
Every successful restaurant operator knows that developing an annual budget is a time-consuming, tedious project. Studies show that companies who prepare annual operating budgets are more successful than those who don’t. Advantages of having a budget include being able to anticipate expenses, set targets for growing the business, and staying within financial limits. Have you … Read More
Robert A. Benson, Manager of Restaurant Operations at KROST, featured on the Tastemaker’s podcast
Robert A. Benson, Manager of Restaurant Operations at KROST, was recently featured on the Tastemaker’s podcast. The show was recorded while our team was at the National Restaurant Association Show with our partners from Restaurant365 earlier this summer. During the episode, Robert talks about his experience in the restaurant industry and the journey that … Read More
State of Accounting – Points of View from the Accounting Leaders’ Desks. The Future of the CPA Profession: What Firms Need to Do to Keep Up
It’s such an amazing but unsettling time to be in our profession. Over the next several years, the accounting industry will look quite different due to technological advances. Many of the things we are doing today will be done significantly different down the road. When I look back over the last 30+ years, there have … Read More
One-Time Repatriation Tax Required Under New Tax Law (2017 Tax Cut and Jobs Act)
The 2017 Tax Cut and Jobs Act (“TCJA”) made significant changes to how businesses and individuals are taxed. Among the changes is how U.S. corporations are taxed on foreign income. As a result, U.S. shareholders directly or indirectly owning 10% or more of foreign corporations may be subject to a mandatory one-time repatriation tax for … Read More
Press Release: KROST CPAs & Consultants Named Inside Public Accounting’s Fastest-Growing Firm for Third Year in a Row
Inside Public Accounting (IPA) has awarded KROST, and its affiliated tax consulting practice, five prestigious accolades based on their annual INSIDE Public Accounting Survey and Analysis of Firms: • 2018 IPA Best of the Best Firm. • 2018 IPA Best of the Best Fastest-Growing Firm. • 2018 IPA 200 Firm. • 2018 IPA 200 Fastest-Growing … Read More
Restaurants Have Until August 30th to Comply with New Prop 65 Notice Requirement
Toward the latter part of the 1980s, Cocktail Big and Die Hard were in the movie theaters, George Michael was telling us to have “Faith” and Wahoo’s Fish Tacos opened its first location in Costa Mesa, California. On the wall in that restaurant, was one of the first chemical warning signs posted because of Prop … Read More
INSIDE Public Accounting has Awarded KROST 5 Recognitions
We are proud to announce that INSIDE Public Accounting has awarded KROST 5 recognitions based on the 2018 annual INSIDE Public Accounting Survey and Analysis of Firms: A 2018 IPA Best of the Best Firm. A 2018 IPA Best of the Best Fastest-Growing Firm. A 2018 IPA 200 Firm. A 2018 IPA 200 Fastest-Growing Firm. … Read More
What You Need to Know About Cybersecurity
We recently published our new KROST Quarterly Magazine which is packed full of articles and insider knowledge focusing on tech topics. Here is an excerpt from the article “What You Need to Know About Cybersecurity” by our Principal and Assurance & Advisory Practice Leader Jason C. Melillo: “All too often we read headlines about major … Read More
Changes in Reporting Requirements for Foreign-Owned Domestic Disregarded Entities
Foreign-owned domestic disregarded entities have not had filing requirements in the past unless an election was made to treat is as a corporation, known as “check the box”. Disregarded entities are most commonly single member LLC (SMLLC). Generally, income tax and reporting requirements would not be reported separately. Rather, they would have been reportable on … Read More
Minimum Wage in California and Tip Distribution
On July 1, 2018, the minimum wage in the Cities of Los Angeles & Santa Monica, and the County of Los Angeles increased. If you have not done so already, we recommend checking the minimum hourly wage settings in your POS and adjusting, if needed, to the new minimum wage. For specifics, please see the … Read More
KROST Named as Fourth Fastest Growing Firms 2018
Pasadena, California, July 3, 2018 – Award-winning, local accounting and consulting firm, KROST, was recently named as one of the “The fastest-growing firms in the US”. This is the annual recognition program conducted by Accounting Today. This report ranks the largest firms across the country and in individual regions offers a host of benchmarking data, … Read More
Global Investment in Artificial Intelligence and Machine Learning
We recently published our new KROST Quarterly Magazine which is packed full of articles and insider knowledge focusing on tech topics. Here is an excerpt from the article “Global Investment in Artificial Intelligence and Machine Learning” by our M&A and Capital Markets Practice Leader Paren Knadjian: “Before diving into global investment trends in Artificial Intelligence … Read More
The Tax Treatment of Cryptocurrency
We recently published our new KROST Quarterly Magazine which is packed full of articles and insider knowledge focusing on tech topics. Here is an excerpt from the article “The Tax Treatment of Cryptocurrency” by Tax Manager Matthew Weber, CPA, MAcc: “Many taxpayers realized significant gains from the disposition of cryptocurrencies in 2017, and as tax … Read More
Accounting for Net Neutrality
We recently published our new KROST Quarterly Magazine which is packed full of articles and insider knowledge focusing on tech topics. Here is an excerpt from the article “Accounting for Net Neutrality” by Assurance & Advisory Director Keith Hamasaki, CPA: “When it comes to technology nothing has taken the business world by storm like cryptocurrency. … Read More
The Basics of Virtual Currency
We recently published our new KROST Quarterly Magazine which is packed full of articles and insider knowledge focusing on tech topics. Here is an excerpt from the article “The Basics of Virtual Currency” by Tax Director Evelyn Fernandez, CPA and Tax Staff Justin Ha: “On March 25, 2014, the IRS released Notice 24-21 detailing how … Read More
The End of To-Go Supplies
Things are changing rapidly at both the local level and the state level. Those changes will soon begin to impact what materials will be allowed to be used by restaurant operators for to go orders. This is one of the times that you want to be ahead of the curve on designing a comprehensive paper … Read More
Avoid Common R&D Expense Documentation Errors
We recently published our new KROST Quarterly Magazine which is packed full of articles and insider knowledge focusing on tech topics. Here is an excerpt from the article “Avoid Common R&D Expense Documentation Errors” by Principal and R&D Practice Leader Kevin Zolriasatain: “Business owners are often surprised to learn they may be able to claim … Read More
KROST Quarterly Magazine: The Tech Issue – Volume 1, Issue 1
We are happy to announce the release of our first quarterly magazine! KROST Quarterly is a digital publication released by KROST CPAs & Consultants headquartered in Pasadena, California. The Tech Issue covers technology and accounting related topics from cryptocurrency to artificial intelligence. Please click the link below to access the full version and subscribe … Read More
First Quarter M&A and Venture Capital Deal Activity in the Food & Beverage Industries
M&A Activity M&A activity in the Food & Beverage space remains healthy with just under 250 deals announced in Q1 2018, down from 370 deals on Q1 2017 (which was a very high quarter in terms of deal count and aggregate transaction value). The largest deal by far was the $23 billion Leveraged Buyout (LBO) … Read More
The Four New Things You Need to Know About Tip Pooling
Number One: A Little History In 1974, Congress amended the Fair Labor Standards Act to allow employers to pay tipped workers less than federal minimum wage if the workers’ gratuities made up the difference. (The Tip Credit) In 2010, a federal court ruled (Cumbie v. Woody Woo Inc.,596 F 3d 577, 9th Cir) that if … Read More
3 Types of Due Diligence to Consider Prior to Buying a Business
There is no single process that everybody follows when purchasing a business, and there are many factors that determine whether a business, once bought, will fulfill its desired purpose. But if there is one thing that will mitigate the chances of failure, and increase the chances of success, it is conducting detailed due diligence on … Read More
5 Steps to Take Now if You Plan to Expand Your Restaurant Business
Are you planning to expand your restaurant business? Do you plan to open new stores? Do you need outside capital to fund that expansion? Here are five steps to take now to improve your chances of successfully raising capital – debt, equity, or both. 1. Make Sure Your Books are in Good Order Most restaurant … Read More
Free Ride Home After Drinking?
Alcohol-Impaired Driving In 2015, alcohol-impaired driving (involving a driver or motorcycle operator with a blood alcohol concentration (BAC) of 0.08 grams per deciliter or higher) contributed to 914 deaths or 28.8% of all traffic fatalities in California. On January 1, 2018, California joined 44 other states and the District of Columbia allowing free rides for … Read More
Lunch Business – Old & New
I grew up outside of Philadelphia (so yes – Fly Eagles Fly)! I’m not going to disclose my age and will hereafter refer to this time as “back in the day”. So, back in the day, there was a famous restaurant near Head House Square called Bookbinders. Opened in 1893, It was originally referred to … Read More
The Adventures of the Restaurant Site Assessment
Here at KROST, we have conducted several Restaurant Site Assessment (RSA) to help give owners and operators an insight into their processes and procedures and we wanted to share some of the interesting issues that we have come across. Sometimes, they even surprise us. At a full-service restaurant, after a 10-minute introduction, we asked the … Read More
Restaurant Industry Tax Update
As the dust is settling from tax reform, restaurant owners should be aware of some changes that may have a substantial impact on their tax liability, both positively or negatively. In this post, we discuss the rules related to capital expenses and depreciation for restaurateurs that own buildings or have paid for significant improvements to … Read More
Client Profile: El Cholo Cafe
We are fortunate to have clients that are an integral part of the history of dining in Los Angeles such as El Cholo Cafe. El Cholo Cafe traces its history all the way back to their first restaurant, which opened in 1924 on Broadway and Santa Barbara Street (near the Coliseum). It has remained a … Read More
Does the New Tax Code Affect Your Business?
There are several changes in the new tax code that may or may not affect your sales. We are particularly concerned about lunch and daytime event sales, as these are the areas that could be affected the most. Code section 13304 in the Tax Cut and Jobs Act (TCJA) amends the IRC section 274 about … Read More
5 Steps to Take Now if You Plan to Expand Your Restaurant Business
Are you planning to expand your restaurant business? Do you plan to open new stores? Do you need outside capital to fund that expansion? Here are five steps to take now to improve your chances of successfully raising capital – debt, equity, or both. 1. Make Sure Your Books are in Good Order Most restaurant … Read More
Global Investment Trends in Artificial Intelligence and Machine Learning
Before diving into global investment trends in Artificial Intelligence (“AI”) and Machine Learning (“ML”), it may be worth quickly defining them. To quote John McCarthy, widely recognized as one of the pre-imminent leaders in this space, AI is defined as “The science and engineering of making intelligent machines.” AI systems can perform tasks that normally … Read More
Loan Out Corporations – To be or not to be?
With the passing of the Tax Cuts and Jobs Act of 2017, many actors, writers, directors, and other professionals in the entertainment industry will likely see their taxes increase beginning in 2018. The entertainment professionals who earn wages are being hit the hardest because employee business deductions will no longer be allowed in 2018 going … Read More
Tax Treatment of Cryptocurrency Transactions
Many taxpayers realized significant gains from the disposition of cryptocurrencies in 2017, and as tax season approaches, these taxpayers must compile accounting reports, review the latest tax guidance, and determine how to correctly report their transactions to the IRS. Coinbase has a new online tax report: In the summer of 2017, the IRS narrowed its … Read More
Accounting for Throttling, the New Net Neutrality
When it comes to technology nothing has taken the business world by storm like cryptocurrency. However, something that slid under the radar and continues to slide under the radar with ever lasting effects are the changes to the Net Neutrality Rules. Net Neutrality is dead, but what does this even mean? Net Neutrality is the … Read More
The Big Change on Tip Distributions and Tip Credits
On December 15, 2017, The Federal Labor Department notified the Office of Management and Budget that it intends to rescind the current rule (FLSA Sec. 203 “m”) that restaurant owners can only distribute pooled tips to employees “who customarily and regularly receive tips.” The newly proposed change (29 CFR 531) would effectively return the rule … Read More
Annual 8027 – Employers Annual Information Return of Tip Income
It’s that time of year again to calculate your tip liability. 8027 forms are due annually by the last day of February on paper, or April 2nd electronically. Employers that operate where food and beverages are served for onsite consumption and tipping is customary are required to file. Also, any employer with more than 10 … Read More
Reporting Foreign Accounts
Nowadays, it is not uncommon for taxpayers to have bank accounts and investments held in different countries. While there is nothing wrong with this, it is important to make sure you are in compliance with US tax filings with respect to foreign accounts and investments in order to avoid getting hit with penalties. There are … Read More
Restaurant Owners, Hold on to Your Profits!
According to the US Chamber of Commerce, approximately one-third of bankruptcies and/or business failures are directly related to employee theft, embezzlement or fraud. That same report states that 75% of these employee crimes go unnoticed until it is too late. We don’t want to you be a statistic. Our Restaurant Site Audit (RSA) is a … Read More
QSBS Questionnaire
The stock of a qualified small business is known as a Qualified Small Business Stock (QSBS). The stock needs to be issued by a domestic C corporation that does not have more than $50 million of gross assets as of the date the stock was issued and immediately thereafter to qualify. The benefit of QSBS … Read More
5 Steps to Take Now if You Want to Sell Your Business In 2018
Due to the recently passed Tax Cuts and Jobs Act (TCJA), business owners who were looking to sell their business in 2018 may now be reconsidering. After all, the TCJA cuts corporate tax rates resulting in increased cash flow for profitable companies. While this is true, it is also worth considering that private company valuations … Read More
How to Co-ordinate Cost Segregation with Like-kind Exchange
The Tax Cuts and Jobs Act (TCJA) was signed by the President on December 22, 2017. The TCJA is the most significant overhaul of Internal Revenue Tax code since the 1986 Tax Act under President Reagan. The Committee Report has over a thousand pages of modifications to many areas of the tax code. One piece … Read More
Cash Flow Relief: How Your Vendors Can Help You
One of the best ways you have available to you to improve your cash flow is to renegotiate your vendor terms. Improved vendor terms allow for additional lead time between payments to purveyors, and provide relief when your bi-weekly payrolls, monthly rent, insurances and sales tax payments are due. It’s common practice for vendors to … Read More
Outsourcing Versus In-House Accounting
Hiring in-house accounting staff may seem like the next logical move as a business grows and financial needs become more complex, but there is another option that companies can consider. Outsourcing the accounting and bookkeeping function to an outside provider, like a CPA firm, can have some significant benefits over adding an employee or trying … Read More
New California Hiring Practices for 2018
During the latter half of 2017, California enacted new employment laws that will affect your business’s hiring practices starting on January 1, 2018. Employers can no longer ask applicants about prior salary. On October 12th, the governor approved AB 168 authored by Assembly member Susan Talamentes Eggman (District 13). AB 168 would prohibit an employer … Read More
Ways and Means Committee Report – Detail
A final tax bill appears eminent. The House and Senate agreed to the reconciliation of their competing bills and most people expect it to be passed before the end of the year. On Wednesday December 13, 2017, the Conference Committee issued a reconciliation of the House and Senate proposed tax legislation. A copy of the … Read More
It’s Almost Time to File 1099’s
Per the IRS guidelines, payments made in the ordinary course of a trade or business are required to be reported on Form 1099-MISC to report certain payments to reportable vendors. Examples of the types of payments reportable on Form 1099-MISC include: 1. at least $10 in royalties or broker payments in lieu of dividends or … Read More
Detailed Comparison of the Senate vs. House Tax Proposal
The Senate modified the Tax Cuts and Jobs Act with a vote of 51-49 on December. The article has been updated to reflect these changes. A copy of the full House bill, as well as a section by section summary of all the changes, can be found on the Ways and Means Committee’s website and … Read More
Important Year End Payroll Information Reminder
Form W-2 and payroll returns provide information to your employees and various government agencies. It is important that information reported on those filings is complete and accurate. In order to help you with this process, we have listed a couple important tips. 1. You are required to file copies of Form W-2 and W-3, submitted … Read More
Information Reporting (Form 1099 and DE 542) For Independent Contractors
****Important: Filing deadline for certain 1099’s is 1/31/2018 for both the recipient and government filing copies!!!**** Form 1099 is used to report payments made to reportable vendors. In addition to the penalty imposed by the IRS for failing to file Form 1099, the California Franchise Tax Board can disallow deductions when a business fails to … Read More
Important Tax Planning Opportunity! IRA Conversions to a ROTH IRA
Converting an Individual Retirement Account (IRA) to a ROTH IRA is a great tool to reduce taxes in the right situation. If you were always over the limits to make ROTH IRA contributions, this can be your chance to take advantage of this type of retirement account. If you already have a ROTH IRA, this … Read More
How You Can Save on 2017 Taxes Before the End of the Year
If you’re looking ahead to the tax season in early 2018, it’s not too late to maximize your tax deductions. There are some excellent strategies that you can implement today that will pay dividends come tax return time. Plan ahead for these deadlines, and ensure that you get every deduction that you can. Donate to … Read More
Yearly Renewal Time Is Quickly Approaching
The end of the year is quickly approaching which means being on top of your business yearly renewals. These renewals include lease agreements, workers compensation insurance, liability insurance, auto insurance policies, among others. This is an excellent time for you to review your lease and your policies, and to make any desired changes upon renewal. … Read More
What You Need to Know About Cybersecurity
All too often we read headlines about major companies that have some sort of breach, Equifax, Target, Sony, Home Depot, just to mention a few. Most people think, “wow, how could they be that careless and then go about their day?” Recently, the Equifax hack hit home for most Americans because it virtually affected all … Read More
It’s Time to Start Preparing Your 1099 Forms For 2017
As the end of the year approaches, it’s time to start gathering the necessary information from your vendors to file your 2017 1099s. January 31, 2018 is the IRS deadline to file your 2017 1099 forms electronically. In order to obtain the necessary information to file your 1099-MISC, you will need to request a complete … Read More
Elizabeth Hugh Named One of Los Angeles Business Journal’s 2017 Most Influential Women in Accounting
We are proud to announce that Los Angeles Business Journal has named Elizabeth Hugh one of the Most Influential Women in Accounting for 2017! LABJ’s list highlights outstanding women accountants in the LA region. One common thread of similarity that exists across the unique group is a propensity to focus on the big picture and … Read More
Florida Tax Relief Opportunities in the Wake of Hurricane Irma
The worst of Hurricane Irma that took place in early September is over, but those affected are left to deal with the destruction that was left in its wake. Survivors with losses due to the hurricane can take advantage of federal and state tax relief opportunities. The IRS has declared that the victims of Hurricane … Read More
Tax Relief Opportunities and Guidance for Those Affected by the California Wildfires
The Governor of California, Jerry Brown, has declared a state of emergency in response to the deadly wildfires that have burned tens of thousands of acres and forced widespread evacuations. When a state of emergency has been declared taxpayers may deduct a disaster loss for any loss sustained. In addition, the Internal Revenue Service (IRS) … Read More
New Service Line and Practice Leader Announcement
Pasadena, California, October 20, 2017 – Award-winning, local accounting and consulting firm, KROST, announced the addition of Paren Knadjian who will head up the firm’s new M&A and Capital Markets service line as Practice Leader. The addition of Knadjian comes as no surprise, as the firm is disrupting the industry with their remarkable growth over … Read More
Preparing for an IRS Audit
While only a small percentage of tax returns are audited, the number is still over a million. If you get that dreaded letter in the mail advising you of an IRS audit, your first instinct is probably to panic – even if you don’t think you did anything wrong. Unfortunately, the audited return is not … Read More
Benefits of Outsourced Accounting for Manufacturing Companies
Manufacturers and distributors face numerous unique challenges – from increasing labor costs, competition, quality control, and lack of resources to funding and regulatory compliance. Accounting tasks like billing, payroll, and reporting can often fall to the bottom of the list, leading to a host of problems, including inaccurate records, missed payments and penalties, and even … Read More
How a CPA Can Be Your Secret Weapon
You have been in business for a while now and experienced a great deal of success along with some struggles with your growing business. Your office staff are fine, but it might be time to reevaluate your business management team. Your legal advisor is one of the best in town. The bank treats you well. … Read More
The Importance of Labor Scheduling
The end of summer and start of fall are challenging times for any operator when it comes to scheduling for a variety of reasons, including losing your seasonal staff, school schedule changes availability, and of course, the new hires need to be incorporated into the remaining slots in your schedule. The goal is to make … Read More
Maximize Education and Savings Credits
It’s that time of the year when parents usually wrestle with canceled checks, old receipts, and monthly statements from banks, credit card companies, and mortgage brokers. This arduous task of settling every possible payment is done to lower federal income taxes. As a parent or guardian, you should be aware of the huge opportunities available … Read More
Grateful Table Event
The Grateful Table is a fundraising dinner to launch Restaurants Care, an emergency assistance fund for restaurant workers facing an unexpected hardship. KROST CPAs in alliance with the California Restaurant Association Foundation (CRAF) is committed to building and maintaining a thriving people-focused restaurant community. The idea for this fundraiser started in 2015 when a chef … Read More
Restaurant Finance & Development Conference 2017
KROST is sponsoring and co-exhibiting with our sister company, KBKG at the Restaurant Finance & Development Conference taking place Monday, November 13th – Wednesday, November 15th. We will be at booth #819, stop by and see us if you are attending! Lester Cook, CCSP, Director at KBKG, will be speaking at the conference. Lester is … Read More
BOE Sales and Use Tax Rate Increase effective October 1, 2017
Effective October 1st, 2017, a district tax increase will be applied in those cities that have not already reached the 2% limit on district taxes. The rate increase is due to the passing of Measure H approved by Los Angeles County voters on March 7, 2017. Measure H or “Los Angeles County Homeless Initiative” the … Read More
Western Foodservice Expo 2017
Our industry leaders at KROST CPAs attended the biggest foodservice expo on August 27 – 29. The Western Foodservice Expo is a must-attend event for anyone involved in the restaurant, foodservice or hospitality industry. We learned about the hottest menu trends, state of the art design and decor, the best in business education and 400 … Read More
Client Profile: Pokeworks
Pokeworks is leading the poke bowl phenomenon all the way from New York City to Vancouver, Canada. Founded in 2015, Pokeworks founders wanted to share their passion for this flavor filled Hawaiian classic with of course a few twists like the Poke Burrito. Helping with the creation of items like the “Shiso Salmon – Signature … Read More
Client Profile: Bottlefish
The vibrant community of Brentwood has a new destination for amazing seafood, craft cocktails, and a well-appointed wine list, Bottlefish. Developed by the founders of California Pizza Kitchen, the restaurant is centered around responsibly sourced seafood, grilled specialties, and an extensive oyster bar. Under the supervision of Steven Rich, Bottlefish is an entirely different concept … Read More
Does Breakage Apply to Me?
Accounting for your restaurant can be both straightforward and complex. One of the upcoming complex issues is the accounting for breakage revenue. The term breakage refers to money that is received from gift cards that are not expected to be redeemed by the customer. Unredeemed gift card liability can be tricky to report as it … Read More
The State of The Onion – A Look at the Foodservice Industry
The Numbers The Foodservice industry continues to have a large footprint in the American Economy. The Restaurant Industry annual sales are expected to reach $799 Billion in 2017 and currently employs 14.7 Million people. That means 14 percent of all retail sales and 11 percent of all jobs in the United States come from the … Read More
Effective Tools to Measure and Control Inventory Levels
As a restaurant operator, understanding the importance of maintaining accurate inventory levels for your restaurant is critical to running a successful business. High inventory levels in comparison with the corresponding food sales can severely hinder your potential for profitability. Excess inventory levels will lead to poor control practices, inefficient use of product and susceptibility to … Read More
The Year of Minimum Wage Increases
We thought it was time to do a review on the effect of minimum wage increases year after year. Since January of 2016, we have experienced four minimum wage increase here in the Los Angeles area. January 2016 the wage increased to $10.00 an hour, July of 2016 we had a Los Angeles area increase … Read More
Does a Cost Segregation Study Increase the Likelihood that My Restaurant Will be Audited?
One of the most common concerns raised by restaurateurs regarding Cost Segregation Studies is whether it increases the likelihood of an IRS audit down the road. While it’s well documented that these studies are accepted by the IRS if performed properly, there isn’t much evidence suggesting the implementation of a cost segregation study on a … Read More
Why You Should be Taking Advantage of the IC-DISC Tax Savings Opportunity
Interest-Charge Domestic International Sales Corporation (IC-DISC) is quite a mouthful, which may be a reason why most people don’t know about this tax incentive. Thousands of businesses are not taking advantage of this tax savings opportunity mainly because they aren’t aware of its benefits. In simple terminology, an IC-DISC is a separate legal entity from … Read More
KROST Named Inside Public Accounting Best of the Best Firm for Second Year
Inside Public Accounting (IPA) has named KROST and its affiliated tax consulting practice Best of the Best and Top 200 Firm for the second year in a row. With a 25% change year over year, the firm placed 137th on the prestigious list, a substantial leap from 157th just last year. Recipients of these distinguished … Read More
CRA Golf Tournament 2017
Please join us at the 2017 Annual CRA Golf Tournament benefiting the ProStart Foundation on October 23, 2017, at the Brookside Golf & Country Club (1133 Rosemont Ave., Pasadena, CA) from 10:30 am – 6:30 pm. Afterward, mingle with your fellow golfers at the tournament’s Food Festival, featuring a collection Los Angeles’ best restaurants, serving … Read More
How Two Words Can Make Your Restaurant a Success
When you listen to the recent strategies on how to be a mega-successful business, you will likely hear some of the following advice: • Find a need and fulfill it. • Solve a problem. • Find your niche and then provide the best content (or some variation of that mantra). • Get 1000 followers and … Read More
Cost Segregation: What It Is and How It Can Help You
If you want the best possible ability to receive full tax benefits from your properties, then you’re going to want to understand and take full advantage of Cost Segregation. At the most basic level, Cost Segregation can be described as “asset evaluation”. You’re basically taking inventory of your assets, identifying exactly what those things are, … Read More
It’s Time for a Mid-Year Tip Check
It’s time to do an analysis of your tip reporting status. The filing of form 8027 for tipping establishments is calculated on an annual basis and reported to the IRS in February. A mid-year tip check gives you some time to correct any issues you may have with individual employees or your employee group as … Read More
Tax Benefit Rule – Recovery of Previous Deduction Could Be Non-Taxable
Most people are familiar with Benjamin Franklin’s famous phrase “nothing is certain except death and taxes”. We are paying all sort of taxes on a daily basis such as sales tax, income tax, property tax, etc. Even after we die, there may be death taxes to be paid. Can anything escape from being taxed? In … Read More
The Three Reasons You Should Worry About Employee Theft
Running a successful and profitable restaurant has always been tough. With the challenges of rising employee wages, a shrinking labor force, and increasing competition, it can feel like you are fighting for an ever-shrinking slice of the food service dollar. In addition to being hawkish about performance and operational costs, there is another challenge lurking … Read More
RestaurantAccountants.com Featured in Los Angeles Business Journal: Food & Beverage Roundtable with Jean Hagan
KROST CPAs & Consultants – RestaurantAccountants.com was recently published in the July 17, 2017 edition of the Los Angeles Business Journal as part of the Food & Beverage Roundtable. The article features our very own Jean Hagan, Principal, and explores a series of timely, industry relevant issues regarding the food and beverage industry. As a … Read More
Essential Things to Know About Estate Planning
At the most basic level, estate planning can be defined as preparing for the dispersal of your assets after you’ve passed. Your assets might include your debts, miscellaneous personal belongings, automobiles, real estate, life insurance and more. Estate planning can also apply to medical decisions outlined in advance before a debilitating condition takes away autonomy. … Read More
Ctuit Software’s Annual User Conference
KROST CPAs recently attended the Ctuit Software’s Annual User Conference. The conference brought together Ctuit Software experts, restaurant industry leaders, and innovators for three days in Napa, California. We learned the industry’s best practices and tips and interacted with other technical and business experts from the restaurant industry. Ctuit is a restaurant management software that … Read More
5 Reasons Your Organization Should Work with an Accounting and Tax Consultant
Wondering whether it’s worth investing in a consulting firm for your accounting or taxes? While you could consider working with a standard CPA or tackling the issues yourself, there are a lot of benefits to going the full-service route for your finances. Here are just a few of the reasons any organization stands to gain … Read More
1031 Exchanges – Pros and Cons
Commercial real estate owners and investors are always looking for new ways to generate profit in their investments. To leverage opportunities and reap the rewards of past investments, it’s sometimes necessary to sell existing property. While generating profit is essential in the sale of commercial real estate, it’s equally important to be aware of tax … Read More
The Future of Non-Alcoholic Beverages
The days of fountain/tower sodas are diminishing in full-service and slowly affecting quick-service restaurants. The general population is drinking less and less soda at lunch and dinner, and with double-digit increases by major soda manufacturers over the past three years, non-alcoholic beverage programs are under increased scrutiny. As restaurants have chosen to go high end, … Read More
KROST Newsletter
We recently launched our first quarterly newsletter. This newsletter covers important issues written by our experts on industry topics including Charitable Contribution Substantiation Requirements, Changes in FATCA and FBAR Reporting, and Effects of Civil Code §1938 on Commercial Property Owners. You can view our newsletter online here. For more accounting and consulting related news we … Read More
BOE LA County Sales and Use Tax Rate Increase Effective July 1st, 2017
Effective July 1st, 2017, a 0.50 percent district tax increase will be applied to the county of Los Angeles, including all cities and unincorporated areas. Measure M or “Los Angeles County Traffic Improvement Plan,” approved by California voters in November 2016, is the county’s comprehensive plan to improve transportation and ease traffic congestion. We highly … Read More
5 Tax Errors That Can Cost Your Business Big
Many businesses operate under the mistaken impression that a small tax mistake here and there isn’t a big deal. These businesses which take such a blasé attitude towards taxes are the ones most likely to lose big on their tax bills year after year, even if they don’t get hit with major fines and penalties. … Read More
Prop 64 – How Does It Affect Your Business?
In November 2016, California joined seven other states and Washington DC in legalizing the recreational use of marijuana by adults. Proposition 64 legalized the recreational use of marijuana for adults 21 years and over. Will Prop 64 Affect Your Drug and Alcohol Policies? Prop 64 maintains the status quo for employers seeking to maintain a … Read More
All-Gender Restroom Signage Requirements for California Businesses
In March 2017, a new law was put into effect for California businesses with single user restrooms. AB 1732 for Equal Restroom Access by Assemblyman Phil Ting of the 19th District (contact phone number 916.319.2019) requires all single restrooms in any business, public accommodation, or government agency to be identified as “all-gender” restrooms. The bill … Read More
Recent Franchisor/Franchisee Employee Court Ruling – Salazar v. McDonald’s
In March 2017, a ruling in a federal court in California made an impact in the franchisor/franchisee world in regards to employees. In the Salazar v. McDonald’s Corp case, the court found that McDonald’s does not control the wages paid to employees at its franchises, and is not responsible for any alleged wage and hour … Read More
Accounting Today Names KROST a Regional Leader & Top Firm to Watch
Recently, KROST was named by Accounting Today as a 2017 Regional Leader and ranked among top 2017 Firms to Watch for outstanding growth, placing the firm within striking distance of next year’s Top 100 List. The regional leaders of the west include firms located in California, Nevada, Oregon, and Washington. The average growth rate in … Read More
Affordable Care Act Requirements and Reporting
Currently, there is uncertainty as to the viability of the Affordable Care Act and some of its important mandates under the new administration, such as the “pay-or-play” mandate, ACA reporting, individual mandate penalty, insurance marketplaces/exchanges, Medicaid expansion, some market reform changes, and a multitude of taxes including the Cadillac tax plan. Any major changes and … Read More
May 1st: A Day Without Immigrants
Many restaurants in the greater Los Angeles area and across the nation were impacted by the “Day without Immigrants” on February 16th. The way restaurants handled absent employees varied from no action to termination. The bigger impact is coming up on Monday, May 1st. The History of May 1st – Labor Protest Day May 1st … Read More
Workers’ Compensation Law Information & Updates
Recently, The State Bar of California and CalChamber hosted a seminar addressing Workers’ Compensation Law in California. The special guest presenters included the Honorable Paige S. Levy, Chief Judge of California’s Division of Workers’ Compensation; Yvonne Lang, top California attorney specializing in the defense of workers’ compensation claims; and Maria Sager, top California attorney representing … Read More
Charitable Contribution Substantiation Requirements
Over the past few years, Americans have collectively donated more than $350 billion to charity with much of those donations coming from individuals. While charitable giving offers a chance to make a difference, there are also tax benefits associated with this philanthropic activity; however, the IRS may require substantiation for the charitable contributions depending on … Read More
Immigration Raids
It is an unfortunate reality that your restaurant may be faced with a visit from the Department of Homeland Security (DHS) in the near future. It can be a real challenge for employers to comply with directives from DHS when it involves cherished employee team members, but there are actions that you need to comply … Read More
Changes in FATCA and FBAR Reporting
Changes of FBAR Due Date The filing of FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) (formerly TD F 90-22.1) is imposed by the Bank Secrecy Act (BSA), passed by Congress in 1970. FinCEN Form 114 is used to report a financial interest in or signature authority over a foreign financial account … Read More
Effects of Civil Code §1938 on Commercial Property Owners
With a bill signed in September of 2016, there are new considerations in the Civil Code for property owners renting commercial space. Under Civil Code §1938, a property owner will be required to inform tenants whether the property has been through an inspection for ADA compliance, performed by a Certified Access Specialist or ‘CASp’. If … Read More
KROST Makes THE LIST: Los Angeles Business Journal’s Top Accounting Firms
KROST was recently named number 24 out of the top 100 accounting firms in Los Angeles County by the Los Angeles Business Journal (LABJ). The ranking is based on the number of accounting professionals in L.A. county. As the firm continues to grow, the leadership credits the KROST team members for the firm’s continued success. … Read More
Ever Think about Your Lease(s)?
Ever think every article, blog or hashtag talks about chain restaurants or large publicly traded companies? The independent restaurant operators make up about 70% of the American restaurant industry. Overwhelmed by everything you need to know to get into the location you love? You have so many hats to wear! Let’s talk about your lease(s). … Read More
De Minimis Capitalization Election
The IRS has implemented the tangible property regulations (TPRs) (T.D. 9689) effective for taxable years ending on or after January 1, 2014. This new guidance determines whether certain expenditures are required to be capitalized or expensed. The TPRs provide de minimis safe harbor for the taxpayer to deduct up to $2,500 of expenditures (or $5,000 … Read More
Why Should I Buy Directors & Officers Difference in Conditions (DIC) Coverage?
Most companies today understand the need for Directors & Officers (D&O) liability insurance, but most are not aware of the need for Side A Difference in Conditions coverage. Private company D&O liability insurance is designed to protect directors, officers, employees and the corporation from claims alleging breach of duty with respect to the governance of … Read More
CASE STUDY: $15 Minimum Wage
Whether we like it or not the $15.00 minimum is a reality and it will be here before we know it. As of January 1, 2017, the California state minimum wage is $10.50 an hour. Keep in mind most cities and counties are on their own accelerated schedules and will be well above the state … Read More
Client Kudos!
SPITZ – Congratulations to our client Spitz on 10 years of growth and success! On Wednesday, October 10, 2016, we had the privilege of joining for their 10-year anniversary in Eagle Rock! We joined the founders Bryce Rademan and Robert Wicklund on their newly finished patio along with their friends, family, and staff to celebrate … Read More
Client Profile: Pedalers Fork
Just walking into Pedalers Fork you can get the feeling right away that this is something special. With the details of the design and the quirky layout, you know there is a lot going on to behold. There is a terrific dining room area with a beautiful and comfortable bar, a creekside deck, a coffee … Read More
Deductions are More Valuable in 2016. Accelerate Them.
It may have been one of the most hotly contested, controversial campaigns in living memory, but there can be no denying the outcome of the 2016 US presidential election is generally friendly for business. President Donald Trump and the Republican Party both agree that that tax reform is a top priority to help stimulate the … Read More
New Tax Return Filing Due Date
As tax deadlines are fast approaching, it is important to remember that the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 revised the due dates and extended due dates for certain returns. The changes are generally applicable for returns in those tax years beginning after December 31, 2015. California has confirmed some … Read More
De Minimis Capitalization Election
The IRS has implemented the tangible property regulations (TPRs) (T.D. 9689) effective for taxable years ending on or after January 1, 2014. This new guidance determines whether certain expenditures are required to be capitalized or expensed. The TPRs provide de minimis safe harbor for taxpayer to deduct up to $2,500 of expenditures (or $5,000 if … Read More
What are the Benefits of Qualified Small Business Stock (QSBS)?
Qualified Small Business Stock (QSBS) entitles owners to exclude 50% to 100% of the gain realized on certain sales. In order to qualify as Qualified Small Business Stock, the stock needs to be issued by a domestic C corporation that does not have more than $50 million of gross assets as of the date the … Read More
New Form I-9 Released
As of January 17, 2017, the IRS released a new I-9 replacing the existing form. We recommended that you update all of your new hire packets and train employees who are responsible for new hire paperwork. Below we cover important changes to note with the latest release. Electronic PDF The new I-9 form is a … Read More
Annual 8027 – Employers Annual Information Return of Tip Income
It’s that time of year again to calculate your tip liability. 8027 forms are due annually by the last day of February on paper, or March 31st electronically. Employers that operate where food and beverages are served for onsite consumption and tipping is customary are required to file. Also, employers are required to file if … Read More
Law Update: Santa Monica Sick Leave Provisions
On January 1, 2017, the provisions of the sick leave law went into effect for the City of Santa Monica. For small businesses in Santa Monica with 25 or fewer employees, workers can earn up to 32 hours of sick leave. For larger businesses with 26 or more employees in Santa Monica, workers can earn … Read More
Law Update: Santa Monica Sick Leave Provisions
On January 1, 2017, the provisions of the sick leave law went into effect for the City of Santa Monica. For small businesses in Santa Monica with 25 or fewer employees, workers can earn up to 32 hours of sick leave. For larger businesses with 26 or more employees in Santa Monica, workers can earn … Read More
2017 California State Sales Tax
Effective Jan. 1, 2017, the sales and use tax rate dropped in the State of California by 0.25%. The rate was lowered one quarter of a percent, from 7.50% to 7.25%, according to the state Board of Equalization (BOE). This lower tax rate is the result of the partial expiration of Proposition 30, a school-funding … Read More
2017 California State Sales Tax
Effective Jan. 1, 2017, the sales and use tax rate dropped in the State of California by 0.25%. The rate was lowered one-quarter of a percent, from 7.50% to 7.25%, according to the state Board of Equalization (BOE). This lower tax rate is the result of the partial expiration of Proposition 30, a school-funding measure … Read More
1099 – Misc. Filings
The 1099 filings are fast approaching. Form 1099-MISC is an IRS tax return document used to report miscellaneous payments made to non-employee individuals, such as independent contractors, throughout the year. A completed copy of the Form 1099-MISC must be sent to qualified vendors and filed with the IRS electronically by January 31st. Those subject to … Read More
Protected: Original and Extended Tax Return Due Dates
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FUTA Credit Reduction
Original Post by Jane Park on RestaurantAccountants.com Recently, the U.S. Department of Labor announced that California and the Virgin Islands are subject to the 2016 FUTA credit reduction. The Federal Unemployment Tax Act or Federal Unemployment Trust Account(FUTA) is the law that structures the details on how states will operate their unemployment benefit programs. Employers … Read More
FUTA Credit Reduction
Recently, the U.S. Department of Labor announced that California and the Virgin Islands are subject to the 2016 FUTA credit reduction. The Federal Unemployment Tax Act or Federal Unemployment Trust Account(FUTA) is the law that structures the details on how states will operate their unemployment benefit programs. Employers who have paid more than $1,500 in … Read More
No Kid Hungry
On September 28, 2016, we were fortunate to have the opportunity to attend the Share Our Strength Los Angeles No Kid Hungry Dinner at a beautiful private residence in Santa Monica. The evening was filled with Hollywood elites, celebrity chef plates, and curated wine. In addition to raising money and awareness to end childhood hunger … Read More
2016 Year End Payroll Information Reminder
Important Year-End Payroll Information Reminder Form W-2 and payroll returns provide information to your employees and various government agencies. It is important that information reported on those filings is complete and accurate. In order to help you with this process, we have listed a couple important tips. 1. The Protecting Americans from Tax Hikes (PATH) … Read More
2016 Individual Tax Planning Ideas
As the end of the year approaches, it is a good time to consider tax planning strategies that will help lower your tax bill for this year and possibly the next. Our office can help you prepare such a strategy, and the earlier we get started, the greater the potential maximization of benefits. We have … Read More
2016 Business Tax Planning Ideas
Businesses that have engaged in year-end tax planning know that as 2017 approaches, it is time to develop, finalize and undertake a year-end tax planning strategy. Businesses that have not yet explored year-end tax planning should take an immediate inventory of their situation and develop a year-end 2016 tax strategy. Our office is ready to … Read More
2016 Year End Information Reporting for Independent Contractors
As a business owner, you have a responsibility to file various information reporting forms. This letter highlights some of the most common year-end filings. Information Reporting (Form 1099 and DE 542) For Independent Contractors ****Important: Filing deadline for certain 1099’s has changed to 1/31/17 for both the recipient and government filing copies!!!**** Form 1099 is … Read More
OSHA Standards – Are You In Compliance?
Adhering to and implementing OSHA standards are important not only because it is the federal law, but it also ensures everyone’s safety and health at the workplace. It reduces business overhead associated with insurance costs, workers’ compensation, turnover rates, and employee absenteeism. Effectively executing and abiding by their standards and programs also helps with employee … Read More
KROST Recognized Honoree of Los Angeles Business Journals’ 2016 Fastest Growing Private Companies
On Wednesday, November 2, 2016, KROST was recognized as one of Los Angeles Business Journals’ Fastest Growing Private Companies in Los Angeles County. KROST received this recognition during Los Angeles Business Journal’s 20th annual ceremony to honor a select group of private companies that have shown remarkable growth. “It’s been an incredible year and we … Read More
10 Years… Cold Beers…. Cheers to Spitz, Eagle Rock!!!
On Wednesday, October 10th we had the privilege of joining our client Spitz for their 10 year anniversary in Eagle Rock! We joined founders Bryce and Robert on their newly finished patio along with their friends, family, and staff to celebrate this successful and expanding brand! The groundwork for Spitz was laid in 2005 at … Read More
Time to Budget
It’s that time of year again, end of third quarter is upon us and many operators are calculating how Q4 will end up, but it’s also time to be thinking of Q1 and beyond. Restaurant operators have always hated the time and effort it takes to create a budget for their operations, but it is … Read More
KROST to Receive INSIDE Public Accounting 2016 Fastest-Growing Pyramid Award
INSIDE Public Accounting (IPA) has announced that KROST will be recognized with the Fastest-Growing Pyramid Award this year at the sixth annual PRIME Symposium, Nov. 16‐18, in Scottsdale, Arizona. IPA uses a proprietary formula to rank Best of the Best firms based on more than 70 metrics covering everything from training and turnover to costs … Read More
Important Legislative Updates
Fall is in the air, and that means we have reached the end of another legislative cycle for the year in Sacramento, but you wouldn’t know it considering there were still almost 800 pieces of legislation awaiting their fate on September 30th. For those of us in the restaurant industry, there are four pieces of … Read More
Krost, Baumgarten, Kniss & Guerrero Announces Rebrand & Fastest Growing Firm Recognition
PRESS RELEASE: October 17, 2016 Krost, Baumgarten, Kniss & Guerrero announced that the company will change its name to KROST and launch a newly designed logo effective October 17, 2016. In conjunction with the rebrand launch, KROST and its affiliated tax consulting practice were recently recognized by INSIDE Public Accounting as the Fastest-Growing Best of … Read More
3 Keys to Exceptional Service
Exceptional service not only leads to positive reviews and guest retention but drives your revenue. There are many moving pieces that affect the level and quality of service. Here is a breakdown of our three keys to exceptional service. 1. Provide Excellent Training Establishments should take the time to hire and train exceptional staff members, … Read More
Are you Letting EMV Chargebacks Eat Away at Profits and Operations?
The answer for most of us in the restaurant business is……yes and yes. Whether you are running a QSR or fine dining location we have clients out there using this “integration timeline” for most of the major POS carriers as an opportunity to abuse a loophole in the system. There are a lot of questions … Read More
Legal Update: Minimum Wage & Sick Pay
As Summer winds down, a host of new State and Local Ordinances have recently gone into effect that will no doubt leave many employers scratching their heads. At the State level, Governor Jerry Brown signed a new provision establishing a gradual increase of the State’s minimum wage. Beginning January 1, 2017, employers with 26 or … Read More
Brewing Up Some Crafty R&D Tax Credit Savings
While Microbrewery may have been a correct terminology for new craft beer breweries and startups, they no longer remain “micro” in numbers and revenue. The craft beer industry has increased by over 20% each year since 2013. While brewing up the signature style and tasty cold beverage is key on the creator’s minds, the Research … Read More
The IRS is Coming: What to Do Before, During and After an ACA Audit
Over the last six years, the Affordable Care Act (ACA) has dramatically changed the employee benefits landscape across the country for employers and employees alike. High deductible health care plans (HDHPs) and health savings accounts (HSAs) have replaced traditional co-pay plans. The so-called “Cadillac” plans are harder to come by and voluntary benefits have popped … Read More
Affordable Care Act Affecting Worker’s Compensation
As the Affordable Care Act started to take hold, work comp insurance companies questioned and assumed that ACA would not affect workers comp. The results are starting to come in and it is not what the insurance industry expected. ACA is absolutely affecting worker comp claims – claims are down because employees with insurance are … Read More
Client Profile: California Chicken Café
California Chicken Café, CCC as it is commonly referred to by its loyal customer base, has become a phenomenon in Los Angeles. Attracting a customer base that is so diverse which many restaurants envy. From the gym rat to the retired, California Chicken Café attracts a wide spectrum of guests that are interested in high … Read More
Making the Grade: Putting the “Bite” into the Grading System
Monday, July 25, 2016 We may be seeing fewer ‘A’s” in the windows of our favorite LA County eateries starting in January of 2017. It’s a fact that a restaurant can be shut down by the health department for a serious health violation, such as a vermin infestation or a lack of hot water and … Read More
Three’s a Crowd: The Rise of Third Party Delivery
It’s no secret that the largest growth sector in the foodservice industry is delivery service and operators who sell pizza have long known this. In fact, restaurant delivery (not including pizza) is up 33% over the past three years. The mobile economy has created an on-demand culture where you can have anything you want delivered … Read More
Beverage Management: It’s More Than Just a Bar
There is no question that liquor sales are the Holy Grail of the restaurant business. The profitability is unparalleled, but so is the liability. And although a mismanaged bar can cost you more from the bottom line than most cost centers, it is often the last area to get the management attention it deserves. It … Read More
Menu Do’s & Don’ts
Nothing says more about a restaurant than the menu. Not only does it convey the culinary vision but also the aesthetic, creativity and overall feel of the concept. The first contact may be with the front desk, but your menu is the one tool in the restaurant that the guest will spend the most time … Read More
Mid-Year Tip Check
At this middle point of the year, it is extremely important to analyze where you stand with your employee tip reporting. Following IRS standards, all tips received by employees should be reported through payroll. Any deviation from actual tips received and tips reported will cause a payroll tax liability. The IRS rarely goes after individual … Read More
Minimum Wage Increases – Santa Monica, Los Angeles, Pasadena
July 1st brings changes to the minimum wage in Santa Monica, Los Angeles, and Pasadena. All cities are going to $10.50 per hour for all employees, but there are differences in regards to sick pay accruals and the use of service charges. Santa Monica has changed from the State mandated accrual for sick pay: The … Read More
The Pareto Principle
We were able to taste some great wine and gain some knowledge at the annual Ctuit Users Conference in Napa Valley. One of the most interesting sessions was Pat Darling’s presentation on the Pareto Principle, also known as the rule of 80-20. Named after an Italian economist who surmised that 80% of Italy’s land was … Read More
SB 878 Restrictive Scheduling
State Senator Connie Leyva (D-Chino) has introduced a bill which seeks to require food, grocery and general retail employers to provide employees with at least a 21 day schedule. Restaurants are being included in the bill even though the author agrees that it is not directed at the restaurant industry. The bill is more directly … Read More
PROP 65 UPDATE
Proposition 65 Updates A recent emergency regulation by California’s Office of Environmental Health Hazard Assessment (OEHHA) has added a Proposition 65 warning option for BPA (bisphenol A). This regulation applies to canned or bottled food and beverage sold at retail. Many of our clients may be receiving these BPA warning signs from their vendors and … Read More
Compliance with Mandatory Required Postings and Notices
Many employers have good intentions of keeping updated postings in the workplace. However, many who post the required notices feel like they are compliant and don’t think to review the postings again. With the rapidly changing State and Federal Employment Laws, employers need to ensure they are continually updating the mandatory required notices. This also … Read More
Guest Retention
Creating regular guests is vital to any hospitality operation. First impressions are the only chance we get to create long-term loyalty and keeping that loyalty is a delicate balance between perception and execution. The truth is 70% of guests never return but if you can increase your regular guests by 5%, it has the potential … Read More
Workers Compensation Captive (Self Insured) for Restaurant Companies
As worker compensation premiums continue to soar in California because of fraudulent claims, higher health costs and a poor loss experience in the restaurant industry, many companies will want to revisit using a “Captive” or self-insured approach. Captive Insurance A Captive has many advantages for larger restaurant companies with good safety records and MODS. The … Read More
The Mobile Future of Restaurants
Investing in technology to help run your business is a no-brainer. The return on investment for systems and software that increases productivity is unparalleled. But would it surprise you to find out that 63% of restaurants still don’t use a point of sales system, citing price as the number one reason? Yet 72% of operators … Read More
Interview Best Practices
Interviewing, selecting and hiring new employees can be a tricky business. Ensure you are in compliance and protecting your business from potential litigation by following a few simple rules. Interview Prep to Ensure Consistency First, make sure you have an employment application that is up to date and compliant with current laws. Applications should not … Read More
So You Want to Open a Restaurant?
OpenTable has partnered with hospitality consultant Alison Arth, the founder of Salt & Roe with 16 restaurant openings to create “How to Open a Restaurant: The Modern Restaurateur’s Guide to Starting & Growing a Restaurant Business”. Our own Jean Hagan and Lou Guerrero contributed their insight and expertise to the guide, providing prospective restaurant owners … Read More
Retail/Restaurant Industry Safe Harbor Under Tangible Property Regulations
The IRS recently issued Revenue Procedure 2015-56 provides a safe harbor for certain taxpayers operating retail or restaurant establishments for determining whether expenditures incurred to “remodel” or “refresh” their property can be expensed under the Tangible Property Regulations released in 2013. Generally, the safe harbor benefits those enhancing the physical appearance and layout of their … Read More
Charitable Contributions and Required Documentation
Substantiation may be required when making charitable contributions and the requirements depend on the nature of the donation. If the contribution is $250 or more, you will need a written receipt from the charity. If you donate property valued at more than $500, additional requirements apply. Here are the details: General rules. For a contribution … Read More
Annual 8027 – Employers Annual Information Return of Tip Income
It’s that time of year again to calculate your tip liability. 8027 forms are due annually by the last day of February on paper or March 31st electronically. You are required to file if your establishment serves food and beverages for onsite consumption and involves customary tipping. Also, employers are required to file if they … Read More
Pending Legislatures
And we’re off… On January 4th we officially kicked off the 2016 California legislature year and as we look ahead there are still some key bills that have yet to be decided… Minimum Wage: This would increase the state minimum wage to $11 in 2016 (right now!) and then to $13 in 2017. From 2019 … Read More
Food and Beverage Industry Increases R&D Efforts
With the challenge of feeding an ever-growing population, food and beverage companies in the United States are forced to increase their research and development efforts to meet demand. In addition to providing more options, food and beverage manufacturers are fighting to keep up with trends in the marketplace which include the reduction in sodium, gluten-free … Read More
Your Management Hates your HR Department
There is a presumption in the restaurant industry that having a Human Resources manager/department helps you avoid pesky lawsuits and class action activity. Anyone that has been in the industry for more than a minute knows that this is totally untrue. Even the best HR manager/department cannot stop wage and hour or harassment issues from … Read More
Vendor Terms: One of the Keys to Running a Successful Business
When was the last time you revisited your vendor terms? Vendor terms are one of the keys to operating a successful business in the restaurant industry. They facilitate cash flow management, streamline your A/P processing and help manage surplus inventory and cost. When initiating new vendor relationships, most vendors are likely to set your account … Read More
Client Profile: Tacolicious
Growing up in Modesto Joe Hargrave wanted to go to culinary school and spend a lifetime in the food and beverage industry. Things changed a little after his first restaurant job when a mentor Chef advised him not to spend the money on culinary school and to just get a minimum wage job. The love … Read More
To Service Charge or Not to Service Charge… is that the question?
With the increasing minimum wage, we are finding ourselves in the ever-changing landscape of needing to protect the future of our bottom line. And while the exact language of the minimum wage law is tied up in legislation we need to react proactively to ensure our industry adapts to this rising tide. Total Compensation? This … Read More
The Paid Sick Leave Holiday
We were all waiting to see how Paid Sick Leave was going to work out — now we have data and unfortunately, it’s exactly what we thought it would be. What a shocking coincidence that employees were out sick Christmas Eve, Christmas Day and the day after Christmas. We really hope they are feeling better … Read More
Qualified Restaurant Property and Depreciation
Buildings and building improvements that are “qualified restaurant property” are eligible for favorable tax treatment that doesn’t apply to most other buildings or building improvements. On December 18, 2015, President Obama signed the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act). One of the provisions in the PATH Act was to make … Read More
Employment Law Updates For 2016
PAGA: Private Attorney General Act This act authorizes individuals to collect penalties previously only obtainable by the state’s Labor & Workforce Development Agency (LWDA). These are considered representative suits which are different than class action suits and cannot be waived by employees. As of October 2, 2015 employers have the right to cure certain violations, … Read More
California Mandatory Paid Sick Leave
The Healthy Workplaces, Healthy Families Act of 2014 (“the Act”) mandated paid sick leave for all employees effective July 1, 2015. The Paid Sick Leave Poster was required to be posted by January 1, 2015. In addition, the new version of the Wage and Employment Notice to Employees (required since 2012) should have been distributed … Read More
Retail/Restaurant Industry Safe Harbor Under Tangible Property Regulations
The IRS recently issued Revenue Procedure 2015-56 providing a safe harbor for certain taxpayers operating retail or restaurant establishments for determining whether expenditures incurred to “remodel” or “refresh” their property can be expensed under the Tangible Property Regulations released in 2013. Generally, the safe harbor benefits those enhancing the physical appearance and layout of their … Read More
CRA Golf Tournament to Benefit ProStart
We had a beautiful day and played on two great courses for the annual CRA Golf Tournament this year. There were 175 golfers participating in the tournament with scores of help from our sponsors and the CRA. We were able to raise over $40K for CRA LA Chapter and ProStart. We had many participants in … Read More
The Year in Review
Happy New Year! What a year it has been for our industry. We’ve seen a lot of changes and discussed, dissected and analyzed the never-ending flood of legislature that affects how we all do business. This is the only business where we create, produce, serve, and receive payment and feedback on our products all within … Read More
Managing Your Minimum Wage Increase
Starting Friday, January 1st, 2016 – the California State Minimum Wage changes to $10.00 per hour. Since this change will almost certainly fall within a payroll week, there are certain things that should be done to prepare for this increase. Importantly, all employees are subject to this increase – there is no differential between tipped … Read More
KROST CPAs – Best Places to Work in Los Angeles Top 100 List
KROST CPAs was recently named as one of the “Best Places to Work in Los Angeles”. This is the ninth annual “Best Places to Work in Los Angeles” recognition program conducted by the Los Angeles Business Journal and Best Companies Group. This survey and recognition program was designed to identify, recognize and honor the best … Read More
New Tangible Property Repair Regulations – Immediate Action Required
The IRS and taxpayers have long disputed whether to classify certain expenditures as either deductible repairs\supplies or as assets that have to be capitalized and depreciated. In attempt to resolve these controversies, the IRS released the final repair and capitalization regulations. These new rules are in full effect for the 2014 tax year and require … Read More
Blue Plate Oysterette – West Hollywood
Blue Plate Oysterette is a New England-style seafood restaurant owned by Jennifer Rush Morton. Unlike other seafood restaurants, Blue plate Oysterette transmits a more casual vibe from their modern look to serving baskets of fried clams, lobster rolls and exquisite whole steamed Maine lobster. This is the second Oysterette location; the original located in Santa … Read More
Border Grill – Grand Opening at Caesars Las Vegas
Chefs Mary Sue Milliken and Susan Feniger, Bravo’s “Top Chef Masters” and Food Network’s “Too Hot Tamales” recently opened a new Border Grill location at the Forum Shops at Caesars Palace. The Forum Shops is a premiere 3-level fashion and dining location, with more than 160 luxury shops and restaurants, amazing architecture, and magnificent water … Read More
Client Profile: Dog Haus
Friends find a business in the Dog Haus After a couple of beers, there have been plenty of conversations about how much fun it would be to open a restaurant together but it usually doesn’t make as much sense the next day. In the case of Hagop Giragossian, Quasim Riaz and Andre Vener it actually … Read More
Los Angeles Food & Wine Festival
Since our last newsletter our Partners Greg Kniss and Jean Hagan attended the annual Los Angeles Food & Wine Festival in Downtown, located on Grand Ave. The festival consisted of food and wine booths from the most popular restaurants around the city and offers guests to taste their delicious food samples for a set entrance … Read More
National Restaurant Association 2014
Principals Greg Kniss and Jean Hagan attended the 2014 NRA Conference at the International Foodservice Marketplace on May 17-20 at the McCormick Place in Chicago, Illinois. It was a great event which we will be glad to be back next year. Every year, over the course of four days, more than 1,800 suppliers and tens … Read More
CRA Los Angeles Chapter Golf Tournament
KROST was one of the sponsors for the CRA Los Angeles Chapter Golf Tournament held on Tuesday, August 05, 2014 from 9:00 AM – 6:30 PM. The tournament was an all-day event hosted at Malibu Country Club; it included golf, contests/prizes, golf gift bags, continental breakfast & coffee truck, lunch, food & wine/beer festival, and … Read More
Ctuit Software – What’s “on the RADAR”
Labor Restaurant operators responsible for single or multiple locations face the challenging task of quickly compiling accurate financial and operational data. Ctuit RADAR users make informed, fact-based decisions critical to success, producing savings of 2-4% in labor costs. The Advanced Labor Scheduling module optimizes labor costs with online scheduling, overtime, and compliance monitoring. Provide projected … Read More
2014 Tax Extenders (Federal)
On Tuesday, December 16th, the Senate passed H.R.5771 to extend several expired tax provisions. The extension is retroactive from January 1, 2014, through the end of the 2014 tax year with minimal changes to the prior tax provisions. Examples of extended provisions are as follows. Note that California does not conform to the same federal … Read More
Key Industry Issues Likely To Be Deliberated In 2015
Labor and Employment 2014 certainly seemed like the year of the minimum wage at both the state and local level not just in California, but nationally. The drumbeat for continued increases will continue into 2015 at the federal, state, and local level as proponents gear up for making the issue a central one to drive … Read More
Affordable Care Act Look to the Future: 2015 Compliance
The Affordable Care Act (ACA) has made a number of significant changes to group health plans since the law was enacted over four years ago. Many of these key reforms became effective in 2014, including health plan design changes, increased wellness program incentives, and reinsurance fees. Additional reforms take effect in 2015 for employers sponsoring … Read More
Client Alert: Recommended Action Items for January 1, 2015
As the year is coming to a close, we want to remind our valued clients about some new employment law requirements starting January 1, 2015, and to announce that Janice Miller has joined our firm as Of Counsel, so as to expand our corporate and business law services. 1) Posting requirement for California’s paid sick … Read More
How to Stay Healthy with California’s New Sick Leave Requirements
Governor Brown recently ushered in a new level of benefits for California employees. Effective July 1, 2015, and known as the Healthy Workplaces, Healthy Families Act of 2014 (the “Act”), the new law requires employers to provide paid sick leave benefits to all employees (with very limited exceptions). In short, the Act applies to all … Read More
Cost of Goods in 2015
As we enter this New Year, the pricing of our core goods is fluctuating daily. According to the USDA, the grocery store consumer prices were 3.4% higher than for this period last year. Restaurant dining increased 2.9% over the same period. The restaurant industry is finally catching up with the increase we experienced over the … Read More
Minimum Wage, Minimum Wage, Minimum Wage
Yes, we are still talking about minimum wage increases here in California. The consensus is clearly in the favor of increased minimum wage being rolled out within the next year. At the Federal Level At the federal level, the tipped minimum wage is $2.13 – regular minimum wage is $7.25 per hour. That’s the advantage … Read More
Dog Haus – Burbank
Dog Haus is Southern California’s craft casual hot dog concept with a passion for creativity, quality, and commitment to the community. Dog Haus is the premier hot dog, sausage and burger joint where freshly-made food and a fun environment are combined with the best fast-casual dining experience around. It combines a unique combination of savory … Read More
Stir Market – West Hollywood
Stir Market is a modern California take on the classic European food hall experience, offering a variety of culinary choices where you can meet, dine, and shop in an intimate setting. The market hall mixes epicurean retail space and a casual restaurant represented by distinctive specialty food stalls. The “market” consists of a restaurant, marketplace, … Read More
Affordable Care Act and Form 8965
Under the Affordable Care Act, there are a number of situations where an individual may receive an exemption from the requirement to have health insurance for all or part of the year. If an individual qualifies for a pre-defined exemption or believes they qualify for a hardship exemption they will need to complete Form 8965 … Read More
Year End Tax Tips for Employees
As year-end approaches, taxpayers generally are faced with a number of choices that can save taxes this year, next year or both years. Employees too are faced with these choices. However, employees have some special considerations to take into account that retirees and other nonworking individuals don’t face. To help our clients who are employees … Read More
Camacho’s Inc. Testimonial
Camacho’s Incorporated is a full-service food and beverage company specializing in the management of restaurants. It oversees a workforce of more than 500 employees who work in a unique collection of restaurants located in high-profile destinations throughout Southern California. The management team at Camacho’s Incorporated ensures that each operation is able to achieve its greatest … Read More
Philippe the Original Honored
KROST was thrilled to participate in the event honoring our client, Philippe The Original as the recipient of the Elizabeth Burns Lifetime Achievement Award. The event held on June 6th at Casa Del Mar in Santa Monica was well attended by industry leaders anxious to honor this iconic and important contributor to the LA restaurant … Read More
Border Grill Honored at National Restaurant Show
Krost congratulates our client Border Grill for the Menu Masters Hall of Fame Award they received as part of the Nation’s Restaurant News Menu Master Event. More than 400 guests attended the awards put on by Nation’s Restaurant News during NRA week in Chicago. Susan Feniger and Mary Sue Milliken were inducted into the Menu … Read More
Western Foodservice & Hospitality Expo Speaking Session
KROST CPAs is hosting a panelist discussion about the ACA Reporting Requirements & Payroll System Compliance at the Western Foodservice Expo on Tuesday, August 19th. Join our discussion at 1:30 PM and learn how to comply and build reports under the requirements of the ACA. Determine the benefits and eligibility for your employees, automate document … Read More
CRA Los Angeles Chapter Golf Tournament
Tuesday, August 05, 2014 9:00 AM – 6:30 PM Malibu Country Club 901 Encinal Canyon Rd Malibu, CA 90265 KROST is one of the sponsors for the CRA Los Angeles Chapter Golf Tournament held on Tuesday, August 05, 2014 from 9:00 AM – 6:30 PM. The event will be hosted at Malibu Country Club and … Read More
AB 2130 Repeal
A little bit of good news from Sacramento – the repeal of AB 2130 which went into effect January 1st, 2014. This assembly bill mandated that any employee, including bartenders and tasting room staff, to wear gloves when handling edible ready-to-eat food including bar garnishes and cheese plates. Local health departments couldn’t even come up … Read More
The Current Economics of California Restaurants
If you listen to most speakers they spend an inordinate amount of time preaching doom and gloom with some political undertones sprinkled throughout the presentations. I always find it necessary to look at the data as well – but that’s just me? We have attended so many conferences recently – CRA Lobby Day, UCLA Restaurant … Read More
Paid Sick Leave for Restaurant Employees
This proposed Assembly Bill (AB 1522) by Assembly Member Lorena Gonzalez (D-San Diego) will require employers to provide up to 24 hours of paid, protected sick leave per year for each employee. The accrued paid leave can be rolled over from year to year and currently, a doctor’s note is not required to verify the … Read More
ACA Update
Greg Kniss and Jean Hagan of Krost attended the ACA update at the NRA Show in Chicago. The presenters were Michelle Neblett, Director of Labor and Workforce Policy and Randy Spicer, VP of Health and Insurance Services. As for the ACA, there have been some minor changes on the administrative side but nothing material. There … Read More
Here We Go Again – Minimum Wage
The minimum wage topic is being written every year now and there doesn’t seem to be a respite anytime soon. This issue is a vote driver and as much as it pains the restaurant operator, legislators are playing to their audience – the voters that are affected by wage increases, our employees – not the … Read More
Hot Insurance Issues for Restaurants in 2014 and Beyond
Health Care Reform: Employer Mandate and Penalties Health Care Reform (PPACA-Patient Protection & Affordable Care Act) is probably the topic at top of mind for all restaurant owners in California. On July 9, 2013, the Internal Revenue Service (IRS) issued Notice 2013-45 to provide formal guidance on the delay of the Affordable Care Act (ACA) … Read More
Golden State of Cocktails
Staged in Los Angeles, the West Coast’s largest city and California’s anchor, Golden State of Cocktails celebrates all aspects of restaurant and cocktail culture, both industry and consumer, from San Francisco to Los Angeles to San Diego and everywhere in between. Principals, Jason Melillo, and Jean Hagan, from KROST, had the honors of presenting at … Read More
Restaurant Leadership Conference
Managing Principal Greg Kniss will be attending the 2014 Restaurant Leadership Conference “Differentiation the Fuel for Growth” on March 30 – April 2nd at the Westin Kierland Resort & Spa in Scottsdale, Arizona. The keynote speaker for this year’s conference is former President Bill Clinton, Bernie Marcus, Marcus Luttrell, and Adam Salgado. The Restaurant Leadership … Read More
Third Party Inspections: A Good Idea?
I understand why an owner of a restaurant would decline the services of a 3rd Party Health and Food Safety Inspection. After all, the executive chef runs a tight ship and the Health Department has always given them an A grade. Moreover, each manager is fully trained and ServSafe Certified and the entire kitchen staff … Read More
Good Night to Service Charges
IRS Revenue Ruling 2012-18 is now in effect for all restaurant operations that attaches a service charge to their guests’ checks. This has actually always been the proper way to handle these types of transactions but the ruling is a warning of the IRS’ intention to now audit and enforce this procedure. Most restaurants have … Read More
The “ABCs” of California Booze Law
Do you want to be part of the booze business in California? Or do you already have a liquor license but are unclear on what you’re allowed to do? We’re here to help. This article provides a brief summary of the regulatory framework and industry structure of the alcoholic beverage industry in California. Readers should … Read More
KROST Restaurant Management Seminar
KROST Restaurant Management: Operational Systems and Financial Controls KROST is happy to announce an upcoming complimentary live seminar. The new seminar is available on a quarterly basis and is limited to ten participants per session. Greg Kniss, CPA, Managing Principal, and Jean Hagan, Principal of Restaurant Operations are presenting a dynamic and valuable seminar titled … Read More
Case Study #1006 Mandatory service Charge vs. Discretionary Tipping
Mandatory service Charge vs. Discretionary Tipping is a relevant case study in regards to the recent change in service charge income: A client wanted to calculate the advantage of adding an 18% service charge to all guest checks and disallow tipping. In this case, I have left the hourly wage for tipped employees at $8.00 … Read More
Client Profile – Mary Sue Milliken
Mary Sue Milliken has been an influence on the Los Angeles Chef and restaurant scene since the early eighties. Co-founder of the beloved City Café in the early eighties and the Border Grill restaurant group in the mid-eighties, Milliken has been a part of the culinary rebirth of Los Angeles. A cookbook author and TV … Read More
Jean Hagan, New Principal of KROST
We congratulate Jean Hagan for becoming one of the Principals of our firm! She joined our team in 2009 as the director of our Restaurant Operations and her expertise helped us develop our consulting practice to include services such as, P&L coaching, restaurant openings, systems automation, business management, sequence of service, check average analysis, management … Read More
NRA Show 2014
Principals Greg Kniss and Jean Hagan will be attending the 2014 NRA Conference – The International Foodservice Marketplace on May 17-20 at the McCormick Place in Chicago, Illinois. Every year, over the course of four days, more than 1,800 suppliers and tens of thousands of buyers come together to make lasting connections that drive business … Read More
Fringe Benefits Overview
A fringe benefit is a form of pay, for the performance of services. For example, an employer provides an employee with a fringe benefit when you allow the employee to use a business vehicle to commute to and from work. Other examples of fringe benefits include accident & health benefits, dependent care benefits, employee discounts, … Read More
Giving Back to the Community
To promote team-building, philanthropy and overall support, Krost has planned numerous volunteer activities in the upcoming months. The events that we have achieved thus far include: donating to the Foothill Unity Center for the “Warm the Tummy, Warm the Heart” Soup Drive in February, donating clothes to the Dolores Mission Thrift Shop during our “Spring … Read More
Giving Back to the Community
To promote team-building, philanthropy and overall support, KROST has planned numerous volunteer activities in the upcoming months. The events that we have achieved thus far include: donating to the Foothill Unity Center for the “Warm the Tummy, Warm the Heart” Soup Drive in February, donating clothes to the Dolores Mission Thrift Shop during our “Spring … Read More
Western Food Service 2013
We enjoyed sponsoring the Western Food Service Show on 8/17/13-8/19/13. Here’s several pictures of us in action at our speaking session and at the CRA party.
How Affordable is the Affordable Healthcare Act?
Now that the Employer Mandate part of the ACA had been pushed back to January of 2015, everyone gave a big sigh of relief – but should you? This changes the landscape significantly in regards to your compliance planning. As the economy is improving and jobs in the restaurant/service segment are increasing – what is … Read More
Restaurant Times August 2013 Newsletter
Our Restaurant Times August newsletter is packed full of knowledge from our industry experts with articles about the Affordable Care Act implementations, the best road map to selecting business intelligence system for your restaurant, and the importance of reviewing your 1099s-MISC. Our main event in August is the Western Foodservice Expo held on August 18-20, … Read More
Western Foodservice Affordable Care Act Panelists
How Affordable is the Affordable Care Act? Come join our panelist session at the Western Food Service Show on Monday, August 19th at 2:45-3:30 PM, in Theater 2, Booth #1055, and learn how you can provide ACA without hurting your bottom line. Our panelist of restaurant professionals and owners will discuss and share their strategies … Read More
KROST Restaurant Management Seminar Series
KROST Restaurant Management: Operational Systems and Financial Controls KROST is happy to announce the return of its seminar series. The new seminar series is available on a quarterly basis and is limited to ten participants per session. Greg Kniss, CPA, Managing Partner and Jean Hagan, Director of Restaurant Operations are presenting a dynamic and valuable … Read More
Increasing Profits with Business Intelligence SaaS
Sunday, August 18. 2:45 – 3:30 PM at the Western Foodservice Expo Solution Center. Jean Hagan, director of KROST, will be conducting a session on: Increasing Profits with Business Intelligence SaaS. Business Intelligence (BI) is critical to increasing profits and reducing costs. Restaurants use BI to make strategic decisions, renegotiate contracts and improve operational efficiency. … Read More
Western Foodservice Expo Solution Center
KROST has reserved a large booth and developed a solution center to provide you with industry expertise. Be sure to join us at our booth for workshops, spinning the prize wheel, and much more. This year, we are teamed up with KBKG inc, Paychex, Ctuit, ISU, and Lanthrop & Gage LLP. Come chat with us … Read More
Free Admission to the Western Foodservice Expo
KROST is pleased to invite you to the Western Foodservice & Hospitality Expo. We are offering complimentary admission. Come visit our “Operational & Financial Solution Center” at the Expo, and join us for our speaking sessions to learn how you can increase your bottom line and get an update on the Affordable Care Act. At … Read More
1099 MISC – What? Why? Who? When?
Now is the perfect time to review your vendor files and determine whether you have all of the necessary information to issue 1099s-MISC for the next tax season. To some, the thought of 1099’s can be the cause of stress and headaches. Thankfully, with some understanding and preparation, the stress and headaches can be a … Read More
Follow the Yellow Brick Road
With so much technology becoming available for restaurant owners and operators it is difficult to choose which systems will serve your needs best. Outlining what information and what systems you currently use is the best way to start mapping an integrated system for your business. The end game is always the same; create information and … Read More
What Now for the Affordable Care Act?
Now that the Employer Mandate part of the ACA had been pushed back to January of 2015, everyone gave a big sigh of relief – but should you? This changes the landscape significantly in regards to your compliance planning. As the economy is improving and jobs in the restaurant/service segment are increasing – what is … Read More
Elizabeth Hugh Appointed As New Chief Operation Officer
PASADENA, CA – July 23, 2012 – Krost a full-service Certified Public Accounting and Consulting firm, is pleased to announce that it has a new Chief Operating Officer, Elizabeth Hugh. Elizabeth Hugh, licensed CPA since 1985, has just joined the company full-time earlier this month and is excited to be part of the team. Her … Read More
Elizabeth Burn’s Lifetime Achievement Dinner
KROST attended the Sixteenth Annual Elizabeth Burns Dinner event where our clients (Mary Sue Milliken and Susan Feniger) were awarded the CRA, LA Chapter lifetime achievement award. The event was held on Friday, June 07, 2013 at the Hotel Casa Del Mar in Santa Monica, CA. Mary Sue Milliken and Susan Feniger are actively involved … Read More
Affordable Care Act (ACA) Panel Q&A
As part of California Restaurant Lobby Day, the CRA sponsored a panel discussion on the incoming Affordable Care Act. A capacity crowd joined the CRA board members for a presentation by Randy Spicer from the National Restaurant Association. Other panelists included Kimberlee Vandervoon from United Healthcare; Ralph Robinson from Wilson Elser Law Offices; Kris Stuebner … Read More
Keeping an Eye on Sacramento
Here are a couple of other bills coming up for vote that you should keep an eye on as a restaurant or bar operator. Contact the CRA for any additional information at www.calrest.org AB323 (Wesley Chesbro-Arcata; [email protected]) would require restaurants to generate four cubic yards of food waste per week to arrange for collection and … Read More
Food Voice – Be Heard
Restaurant operators spend a day in and day out working hard to run a profitable business. FoodVoice is a dynamic smartphone app that gives all hardworking and innovative restaurant industry players a seat at the table where policy decisions affecting restaurants are made – even on the go. The data gathered from California operators will … Read More
California Restaurant Association
The California Restaurant Association was established in 1906; thirteen years before the NRA was founded. The CRA was one of the first restaurant trade associations founded in the US. Through advocacy, education, and promotion, the CRA represents the interests of restaurant owners and operators here in the state. California has more restaurant and food service … Read More
Client Spotlight – Jot Condie
Q. Jot, it’s been a busy couple of months for the CRA – tell us what you have been up to: It’s been a very active spring for our industry and the CRA. Last month we held our annual Lobby Day at the state Capitol and several delegates attended the National Restaurant Association’s Public Affairs … Read More
Lobby Day, Rock’n Restaurants Raise Profile of California’s Restaurant Industry
On April 9th in Sacramento, hundreds of restaurant operators, industry supporters, Legislators and Capitol staffers convened to celebrate the strength of the industry at the CRA’s second annual Rock’n Restaurants event at the Crest Theatre in Sacramento. The concert event capped off Lobby Day 2013, which involved dozens of operators convening to discuss hot legislative … Read More
Prop 65 Enforcement Scam
Proposition 65 is the Safe Drinking Water and Toxic Enforcement Act of 1986. Do you remember voting for that? Of course, you would, who wouldn’t? So what’s that got to do with the restaurant business? The answer is … a lawyer’s dream – fine print! Most of the filed complaints are called “straw man plaintiffs” … Read More
Proposed Minimum Wage Increase
As most of you have heard in the news recently – there is another minimum wage increase approaching a vote in Sacramento. I think it is important to note that trying to lobby for not raising the minimum wage is a lost cause. The minimum wage is going to increase – the impact that the … Read More
Release Of New Temp. Regs. Under 263(A)
The biggest news that came out in 2012 was the long awaited Temporary Regs under 263(a). This clarified the rules categorizing building expenditures into capital improvements or repair expenses. However, one of the most significant rules that has changed under these Regs is the disposition of structural components of buildings. In the past, when a … Read More
Getting Ready for the Affordable Health Care Act
Even though the Affordable Health Care Act does not technically begin until January 2014 – you are probably already behind on some required planning and administration issues. The Act is going to require all restaurant operators to know more about health care and the administration of the program than they ever wanted to know. This … Read More
Taxable Fringe Benefits, 2% Shareholder
Fringe Benefit Overview A fringe benefit is a form of payment, for the performance of services. For example, an employer provides an employee with a fringe benefit when you allow the employee to use a business vehicle to commute to and from work. Other examples of fringe benefits include accident & health benefits, dependent care … Read More
IRS Delays Start of Guidance on Tips and Service Charges
Ann. 2012-50 The (Rev. Rul. 2012-18) ruling was originally set to be effective for amounts paid on or after 1/1/2013. The IRS has now extended the effective date to amounts paid on or after 1/1/2014. This gives clients one more year to implement procedures to ensure proper reporting if they choose to continue paying service … Read More
New Laws Facing California Employers In 2013
There are some significant changes regarding California employers’ duties in 2013. This list is an overview of the major changes that employers should consider and be aware of at the beginning of 2013. Employers Cannot Ask Applicants Or Employees For Social Media Passwords – AB 1844 This law created Labor Code section 980, which is … Read More
Don Luis Camacho
Don Luis Camacho, who has taken over his family business, discusses the history and future of his family restaurants. Learn more about Don as he shares his story with KROST. Don Luis, the Camacho name is well known in Los Angeles for Mexican Food, how did your family start in the business? My father Andy … Read More
Repair vs. Capitalization Case Study
This case study focuses on a chain restaurant with locations in various cities in Southern California. In addition to performing a cost segregation study on these restaurants, a thorough Repair vs. Capitalization study was done to provide a bigger benefit. Essentially, we took advantage of the new changes to the tax code that was implemented … Read More
Form 1099: Why It’s Important and What You Need to Know
A 1099 Form is used to report various types of income other than wages, salaries and tips to the IRS for taxation purposes. A 1099 must be issued for most non-incorporated vendors that are paid $600 or more for services rendered in one calendar year. All disbursements issued to attorneys, regardless of amount, must be … Read More
KROST’s First Restaurant Seminar: A Gourmet Hit
On September 24, 2012, KROST held their first ever restaurant-themed seminar entitled “Restaurant Management: Operations, Systems, and Financial Controls”. Hosted at the Roosevelt Hotel in Hollywood, Managing Partner, Greg Kniss, and Director of Restaurant Operations, Jean Hagan, were the featured speakers of this exciting event that covered the ins and outs of operating, owning, maintaining, … Read More
Business Intelligence Software is Driving Restaurant Profits
An important tool is emerging as an undisputed victor from the ashes of the 2008 recession, the subsequent dramatic rise in commodity prices, and other escalations in restaurant operating costs. Sophisticated restaurant operators are beginning to use Business Intelligence software (“BI”) to manage increasingly volatile P&L statements where utilities, insurance, food costs, paper costs, labor, … Read More
End Of the Year Insight from Paychex
Are you prepared for the end of the year? Paychex gives a company compliance checklist to advocate being more prepared for end-of-year taxes. Confirm employee name and address list. Report employee changes to your payroll provider by the assigned due date. Ensure that you have the necessary federal and state withholding forms available when reporting … Read More
Perpetual Bar Inventory
The case study involves a full-service restaurant that has different venue focus areas with seating for over 400 people. Annual sales are roughly $6 million. The challenge here was the constant problem with accurate inventory values. From month to month, it was impossible to figure out where the inventory mistakes were made. This operation was … Read More
Is Your Maintenance Program going to Trick or Treat You?
Every restaurant manager lives in fear of the surprises that will surface during a busy weekend or holiday in their restaurant. These surprises are almost always maintenance related issues in the restaurant business because most of our employees show up and work the busy shifts. Managers treat their maintenance and repair issues like if they … Read More
Urbane Cafe
Tom Holt, Motorcross Racer turned Restaurant Owner, made a unique career move after his racing career. Learn more about Tom as he shares his life story with KROST. You started out as a Motorcross Racer – how did you end up in the restaurant business? When I got done racing I went back to college … Read More
Workers Compensation Changes for 2013
On Sept. 18, 2012, Governor Jerry Brown signed into law significant changes to the California workers’ compensation system, which will take effect on Jan. 1, 2013. The legislation was supported by both Democrats and Republicans and is intended to benefit employers and employees in California by reducing costs, increasing benefits and improving the system overall. … Read More
Cas Findlay Completes 3-Day, 50-mile Walk in Support for Multiple Sclerosis
October 16, 2012 – Cas Findlay, Audit & Assurance Services Manager of KROST finished her 3-day, 50-mile walk for National Multiple Sclerosis Society. Congratulations and thank you for bringing awareness! About Cas Findlay: Cas has been with Krost Guerrero since February 2008. She is currently responsible for the management and supervision of audit and review … Read More
Cas Findlay is Supporting the National MS Society
We are pleased to announce that Cas Findlay, Audit & Assurance Services Manager of KROST will be participating in the National Multiple Sclerosis Society’s 3-day, 50-mile walk from Sept 21st to 23rd. She has done a remarkable job fundraising and exceeding her goal by more than 20%. Congratulations Cas! We salute you for bringing awareness … Read More
Western Foodservice Expo 2012
We would like to thank you for attending the Western Foodservice in Anaheim. Greg Kniss presented on “Strategies to Increase your bottom line & other hot topics” and Jean Hagan had great conversations with several restaurateurs at our booth.
Strategies to Increase Your Bottom Line & Other Hot Topics
Gregory Kniss, Principal at KROST will be presenting an informative session titled, “Strategies to Increase Your Bottom Line & Other Hot Topics” at the Western Foodservice & Hospitality Expo on Sunday, August 12. He will discuss the economy, growth opportunities and serve valuable management and operational tips. His session will cover everything from staffing to … Read More
Tax Versus GAAP Bases of Accounting
Many small business owners maintain their accounting records on the income tax basis of accounting. However, many small business owners are not clear on (i) the reason the income tax basis was selected, or (ii) how the income tax basis of accounting differs from generally accepted accounting principles (“GAAP”). The difference between the income tax … Read More
Case Study: Average Check
This case study focuses on the influence that “average check” has on overall sales in a restaurant. Many restaurant operators do not follow their average check closely enough to determine when they are losing valuable income from existing guests. In the planning stages of a restaurant, from menu design to lease or purchase values, average … Read More
What “Obamacare” Means For Employers
With the Supreme Court ruling that the Patient Protection and Affordable Care Act is constitutional, many are now beginning to examine exactly what the law means and the new obligations it creates for employers. Below is only a general outline of the major portions of the law’s new requirements on employers, and employers are urged … Read More
It’s Half Time
It’s hard to believe, it’s halftime in the year. There are certain things an operator should review when we get to this point. It is not too late to make adjustments to hit those final budget numbers. Here are some areas I suggest would have the most impact on your financial statements: Budget Review Conduct … Read More
Vino at Trios
The newest addition to the Charlie’s Trio family is Vino’s at Trio. This concept is perfect for those wanting a place where the wine matters and the food is paired correctly (a passion for both Fata brothers, Michael and Chuck). It’s rare and refreshing to see seasoned restaurateurs’ turn their passions into reality. The Fata … Read More
NLRB Weighs In Again on Employer Social Media Policies
The National Labor Relations Board (NLRB) continues to weigh in on social media. The Acting General Counsel of the NLRB has issued the third in a series of reports on the alleged negative effects of social media policies on employee organizing rights under Section 7 of the National Labor Relations Act. In the two prior … Read More
CRA Lobby Day Sacramento 2012
We were proud to be a part of the CRA Lobby Day in Sacramento.
Client Spotlight – The Lobster
Santa Monica, CA It seems like the Lobster has always been there, but in actuality, it has been just over twelve years in its current form. The original Lobster Shack was opened in 1923 at the corner of Ocean Avenue and Santa Monica Pier. It has become the favorite place to go for many in … Read More
Reporting Tips to the IRS
This case study focuses on an issue that many restaurateurs battle with constantly: TIPS! Controlling the declaration of income from tips by employees has become a challenge for many restaurant operators. There is no question that the IRS demands employers to be the guardians of this and many operators are unaware that they have been … Read More
Third Party Inspections: A Good Idea?
I understand why an owner of a restaurant would decline the services of a 3rd Party Health and Food Safety Inspection. After all, the executive chef runs a tight ship and the Health Department (HD) has always given them an A grade. Moreover, each manager is fully trained and ServSafe Certified and the entire kitchen … Read More
Profiting From Employee Tax Credits
Another contributing factor to payroll cost is the associated tax burden. Savvy operators understand the employee component of payroll, but often neglect related decisions that can help mitigate such payroll costs. For example, a sizeable portion of labor overhead can be indirectly recouped through wage-based income tax credits. These incentives turn labor expenditures into tax … Read More
Payroll and Why you Can’t Control It
Every restaurant owner and operator, large and small, feel the pain of payroll every two weeks. Struggling to control costs, this area seems to be a black hole that they can not work their way out of. Instead of attacking this issue like any other on their financial statements, every time payroll has to be … Read More
Gift Card Revenue – Gift or Grief?
Over the last five years, gift cards have attracted a lot of attention from consumers, retailers, and regulators. A 2010 holiday season survey conducted on behalf of the National Retail Federation (“NRF”) found that more than 77 percent of shoppers had in fact purchased, or intended to purchase gift cards. The survey also estimated total … Read More
Client Spotlight – Yamashiro
Los Angeles, CA Located atop the Hollywood Hills, Yamashiro watches over the ever-changing Hollywood restaurant scene with a keen eye. Originally developed as a private estate to showcase a priceless collection of Asian treasures, including a 600-year-old Pagoda still on display, Yamashiro has been a thriving restaurant since the 1920’s. Family owned and operated the … Read More
That’s so Gross
Ask five restaurateurs to define Gross Sales and you will get more than five answers. Technically, the correct answer is that Gross Sales include all revenue centers in the restaurant operations. The National Restaurant Association defines Gross Sales as “income received from goods and services”; so yes, that includes all food and beverage income, service … Read More
A California Sales Tax Audit – Your Biggest Nightmare!
Sales tax audits in the restaurant industry are inevitable, especially with states like California needing money due to the economic downturn. The problem is not the audit, but the typical results – a large assessment of tax, penalties, and interest. Audits typically encompass a four-year period and the list of documents that will be requested … Read More
Ctuit and Krost Announce Partnership
Ctuit Restaurant Business Intelligence Los Angeles, CA Phone: 415-884-4888 KROST’s managing Partner Greg Kniss has announced a new partnership with Ctuit. “We have been working with Ctuit as a way to bring valuable information to our clients to assist them in increasing their profit margins,” noted Kniss. Single and smaller multi-unit restaurant companies need the … Read More
College Culinary Program Heats Up: Campaign Kicks-Off to Raise Funds for State-of-the-Art Culinary Facility
College of the Canyons Institute for Culinary Education 26455 Rockwell Canyon Road Santa Clarita, CA 91355 College: (661) 259-7800 Foundation: (661) 362-3434 College of the Canyons officials in Santa Clarita have embarked upon a capital campaign designed to raise funds for the construction of a brand new, state-of-the-art, on-campus culinary facility, which would provide a … Read More
Case Study: Restaurant and Bar Review
This is a restaurant and bar that specializes in unique beer choices paired with an upscale menu. Different than other pub operators, this group has a commitment to also providing a high-level food experience. Location/Occupancy Costs Great location on a corner of the main street in a mid-sized town environment. Excellent occupancy costs ranging at … Read More
Case Study: Restaurant Company Review
The first thing we reviewed in detail was the financial statements. They were produced by a bookkeeping service that was inexpensive and inaccurate. We reformatted the numbers so the owners could read, understand, and calculate basic costs associated with the restaurant business. Once the financials were reformatted we compared their numbers to local and national … Read More
Client Spotlight – SPITZ
Los Angeles, CA Co-owners Bryce Rademan and Robert Wickland, classmates from Occidental College, operate two restaurants with the third one in development. The named the restaurant Spitz to highlight the slow roasting of minced roast beef and lamb pressed together and cooked on a vertical spit and sliced off to order. This Mediterranean dish is … Read More
Is The Jury Still Out On Social Media Background Checks?
Honan, an author at Gizmodo.com, recently wrote an article (‘I Flunked My Social Media Background Check. Will You?”) about a new company that helps employers search applicant’s “internet background” to assist in the hiring process. As Mat rightly points out, much of the concern over this “new technology” is overblown, and as he puts it, … Read More
Where’s That Invoice Going?
From the time an invoice shows up at your restaurant until it shows up on your profit and loss statement, it travels through every significant control system you have- or don’t have! Your account number with the vendor- what are your terms? Have they been updated after doing business with them for six months? Did … Read More
Federal Tip Credits – Carry back provisions provide one-time opportunity to recoup tax!
Most restaurateurs know about the Federal Tip Credit also known as the FICA credit. Restaurant owners can claim a credit on their federal income tax return for the amount of federal payroll tax, i.e. the FICA tax they paid on employee’s tips that are reported on the employees’ Form W-2. Up until 2007, the credit … Read More
Foreign Financial Account Reporting and Amnesty Program
Reporting of Foreign Bank and Financial Accounts (FBAR) and Beyond If you have any foreign investments, you should be aware of the following: Action required before June 30, 2011: Each U.S. person who has a financial interest in or signature or other authority over foreign bank accounts, securities accounts or other financial accounts must file … Read More
COVID-19 Update for Restaurants
So… lots going on. Based on various conversations I have had with insurance representatives and attorneys, below are some thoughts about what types of actions you should be considering. Please always check directly with your insurance carrier and labor attorney for direction. Operating Hours Not sure what your decision is regarding operating. Obviously the only … Read More
![[Updated Announcement] Safer at Home Ordinance & Resources](https://www.krostcpas.com/wp-content/uploads/Updated-Announcement_-Safer-At-Home-Ordinance-1.jpg "[Updated Announcement] Safer at Home Ordinance & Resources")
[Updated Announcement] Safer at Home Ordinance & Resources
Dear Clients, Community, and Friends, With the latest announcement of Mayor Garcetti’s “Safer at Home” ordinance for the City of Los Angeles effective Friday, March 20, 2020, at 12 AM, as well as other cities, states, and perhaps the nation following suit, businesses and families have been left wondering what they are going to do. … Read More
The Timing of Tax Losses on Closed Restaurant Units
A regular part of business operations in the chain segment of the restaurant industry is the periodic review and evaluation of individual units, units within a given geographic market, and, the overall performance of particular concepts. When a unit, market, or concept fails to meet company expectations for return on investment or performance criteria, the … Read More
Tax Trap on Gift Card Sales: Are you picking up income at the right time?
Before we know it, the holiday season is just around the corner. A lot of businesses are ordering stock, scheduling staff, and doing everything necessary around this time of the year to get ready before the shopping spree starts. Among all the available gift items, gift cards are gaining popularity since they are so easy … Read More
FICA Tip Credit No Longer Limited by AMT
The 2007 Small Business and Work Opportunity Act of 2007 signed by President Bush on May 25, 2007, waives the limitation on the use of the FICA Tip Credit against Alternative Minimum Tax. Many restaurant operators are aware of the federal FICA Tip Credit, a credit given to taxpayers (with tipped employees) equal to the … Read More
Increased Deductions for Food Donations through The Katrina Relief Act: A new opportunity for businesses to substantially increase charitable deductions
Publication: KROST Most restaurateurs know that inventory contributed to charity can be deducted based on the cost of the inventory. What many restaurants may not know is that new legislation allows a taxpayer to claim higher deductions closer to the actual value of the inventory. This results in increased deductions for restaurants, grocery stores, and any … Read More
Have You Received an Increase In Visa/MasterCard Charges?
Publication: KROST Well, it’s that time of the year again in which some credit card processing providers will announce that there is an increase in Visa/MasterCard rates and these rates must be passed on to you. Have you received such a notice in your February, March or April merchant statement announcing this increase for May or … Read More
IRS Announces New Tip Reporting Program
Publication: IRS Website WASHINGTON — The Internal Revenue Service today released formal guidance on its new tip reporting procedure, the Attributed Tip Income Program (ATIP) ATIP expands the existing IRS tip reporting and education program by offering employers in the food and beverage industry an additional tip reporting program. ATIP reduces industry recordkeeping burdens, has simple … Read More
Tax Credits & Other Related Tax Benefits
Publication: KROST Monthly News Release Running a business can be extremely difficult with income taxes often eating up a good portion of your profits. There are, however, numerous tax benefits available to businesses that most owners are unaware of. As a restaurant owner, you are probably aware that you have to pay social security and Medicare … Read More
The ABCs of Watching Out For Employee Theft
Publication: KROST Monthly News Release Approximately 95% of all businesses now experience some type of employee theft totaling an estimated $52 billion dollars a year. Cash-based businesses such as restaurants and bars are even more vulnerable to theft by employees. While it would be nearly impossible to eliminate employee theft and dishonesty completely, we can gain … Read More
Minimum Wage Increase Vetoed
Publication: California Restaurant Association Email AB 48, by Assembly Member Sally Lieber, was vetoed by Governor Arnold Schwarzenegger late last week. This bill would have raised California’s minimum wage by $1 and would have tied future increases to a cost of living adjustment. CRA lobbyists fought hard against AB 48 this year, just as they did … Read More
California Follows Federal Law on Partial-Day Absences
Publication: Carlton DiSante & Freudenberger LLP, Attorneys California employers may now deduct partial-day absences from an exempt employee’s accrued vacation without fear of rendering the employee non-exempt. Although partial-day deductions have been permitted under federal law for a number of years, California law had been in limbo since a 2002 opinion letter from the Division of … Read More
Smallwares Treatment Rev Proc 2002-12
1. Purpose This revenue procedure provides taxpayers engaged in the trade or business of operating a restaurant or tavern (as defined in section 4.01 of this revenue procedure) with a safe harbor method of accounting for the cost of ‘smallwares’ (as defined in section 4.02 of this revenue procedure) (‘smallwares method’). This revenue procedure also provides … Read More
Keeping Control – Weekly Profit & Loss Reports
The restaurant industry is notoriously competitive. Over fifty percent of all restaurants close within five years of opening. In addition, profits for full services operations only average four to five percent. By paying attention to the details, an operator can increase profits significantly. A key tool used by many operators to maximize profits is a … Read More
Form 5471 – Reporting Ownership in Foreign Corporations
You may be required to file Form 5471, “Information Return of U.S. Persons with Respect to Certain Foreign Corporations,” if you have ownership in a foreign corporation. Form 5471 is becoming increasingly important for U.S. taxpayers with interest in a foreign corporation regardless of location. Determining who needs to file Form 5471 can be a … Read More