Winter 2008

Contractors Fight 3% Withholding Tax
Contractors nationwide are preparing to fight back against a law that will require federal, state and local governments to withhold 3% from all payments for goods and services. The 3% tax, slated to become operational in 2011, is intended to guard against possible tax evasion by businesses. Read more...

FIN 48 and Your Construction Company’s Financial Statements
Like other businesses that prepare financial statements in accordance with generally accepted accounting principles (GAAP), construction firms need to become familiar with a new accounting pronouncement known as “FIN 48.” The Financial Accounting Standards Board (FASB) issued FIN 48, Accounting for Uncertainty in Income Taxes, to interpret Statement of Financial Accounting Standards (SFAS) No. 109, Accounting for Income Taxes. The new accounting guidance applies to all types of entities, including C corporations, pass-through entities such as S corporations and partnerships and real estate investment trusts. Read more...

Employee Performance-Based Incentive Plans
An Employee Performance-Based Incentive Plan provides a process by which to reward those who work hard, establishes incentives and incorporates a mechanism to ensure implementation and monitoring. It can assist in attracting and retaining good employees. Do you need help designing an Employee Performance-Based Incentive Plan? Somerset professionals have significant experience putting these plans into place for contractors and A/E companies just like yours. Please contact Ken Hedlund to discuss details.

Taking Care of Your Retirement Plan
It’s important to stay up to speed on changes in the laws governing retirement plans since some of these changes could offer additional saving opportunities for you and your employees. The Pension Protection Act of 2006 (PPA) is a case in point. In addition, don’t ignore routine issues of plan compliance if you want to avoid regulatory problems down the road. The sidebar identifies some compliance issues that deserve your attention. Read more...

Developments in Tax and Business
Only 21 states have “Good Samaritan” laws, which protect responders working in emergencies and natural disasters from lawsuits for negligence. Since construction companies and their personnel have volunteered to help after numerous emergencies and disasters, construction industry groups are asking for federal “Good Samaritan” legislation. Read more...

Somerset Construction & A/E Team News
Speaking Engagements - Ken Hedlund has been on the road presenting the results of the 2007 Construction Industry Annual Financial Performance and Salary & Benefits Survey. On January 17 and January 31, Ken presented this information to the Michiana Council and Northeast Council of Associated Builders and Contractors of Indiana. If you would like information on the survey, please contact us.

Axium Reports 95% Growth in New Product Revenue; Strongest Quarter in Company History - On January 21, 2008, Axium announced a 95% growth in new product revenue for the fourth quarter of 2007, an increase of 330 firms to Axium's client base. The record fourth quarter was also the third consecutive quarter with record-breaking new product sales. Axium is a software solution specific for the Architectural and Engineering industries with in depth project management and financial accounting features. Somerset is an authorized consulting partner for the Axium family of software solution products, which includes Ajera, Portfolio, Protrax and iTime & Expense. Contact Jason Leveson or John Dighton for more details. Visit our web site for the full press release.

Congratulations to Harold Sattison - We would like to extend our congratulations to Harold Sattison, Executive Vice President of Brandt Construction, Inc., on his new position as President of Associated Builders and Contractors of Indiana. On January 10, 2008, he was sworn in at the ABC 2008 Inaugural Dinner. 

INDOT Overhead Rate Audits - We have been providing overhead rate consulting and audit services to our many engineering clients for a number of years. Whether you are required to “self certify” your overhead rate or obtain an overhead rate audit, Somerset CPAs can help. These reports are due to INDOT by June 30, 2008, for firms with a calendar year-end. Please contact Chris Mayfield to discuss details.

ACEC Indiana Engineering Excellence Award Banquet - Members of Somerset's Construction & A/E Team will be attending the ACEC Indiana Engineering Excellence Award Banquet on February 2, 2008. We hope to see you there. Visit ACEC's web site for more details.

Work-In-Process is provided by Somerset CPAs for our clients and other interested persons upon request. For additional information on the issues discussed, please contact Ken Hedlund, Jay Feller, Steve George, Chris Mayfield or Rebecca Ogle of our Construction & A/E Team. Since technical information is presented in generalized fashion, no final conclusion on these topics should be made without further review. This document is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties that may be imposed on the taxpayer.

Somerset CPAs, P.C.
3925 River Crossing Parkway
Third Floor
Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206
FAX 317.208.1200
www.somersetcpas.com

The Indiana Subcontractors Association presents:

The Construction Networking Event of the Year!

Thursday, March 6, 2008 Indianapolis Convention Center - Sagamore Ballroom

Visit Somerset's Construction & A/E Team at Booth #17 during the trade show.  Somerset is also a proud sponsor of the GC of the Year Awards.
 Click here for more details.

Construction Industry Annual Financial Performance and Salary & Benefits Survey
Somerset CPAs annually surveys Indiana construction firms, including trade contractors and general contractors. The survey responses are compiled and analyzed by the accountants in Somerset’s Construction & A/E Team. The 2008 survey will be online for participation in April.

We hope you will participate. More details will be coming soon. Please contact us for more information.

Ken Hedlund of Somerset's Construction & A/E Team is on the Executive Board of the Indianapolis Parks Foundation. We hope to see you at this worthwhile fundraising event.

Where can you find event information from more than 25 local construction and design trade associations?

Go to the Consolidated Industry Calendar on Building Excellence's web site.

Is Axium software right for your A/E firm? Contact us to arrange for a no-cost, no-obligation demonstration today.