W-2 Reporting of Health Coverage The health care reform law included a new requirement that the cost of employer-sponsored health insurance coverage be reported on Form W-2. The new requirement was to take effect starting in 2011, but the IRS has made it optional for all employers for the 2011 Form W-2. And for eligible…
Contractors need bonding to work on many projects. Unfortunately, obtaining bonding is never a sure thing. Long-established contractors, as well as new and emerging contractors, are being asked by surety companies to meet more stringent requirements in order to get bonding. Before underwriting their projects, surety companies want contractors to provide detailed business plans, regularly…
It may seem easy to figure out how well your company is doing — you just look at whether or not you made a profit this month or this quarter. But you need to dig deeper if your profits are erratic or not at the level you’d like or expect them to be. You need…
The construction industry has traditionally relied on a work force composed of full-time workers and independent contractors. Companies are generally required to withhold income taxes, withhold and pay FICA (Social Security and Medicare) taxes, and pay unemployment taxes on an employee’s wages. However, these obligations generally don’t exist when it comes to payments made to…
Business assets: Under Section 179 of the tax code, a business may “expense,” or currently deduct, the cost of qualified business assets placed in service during the year. For 2011, the maximum expensing allowance is $500,000. In addition, a business may still qualify for 100% “bonus depreciation” deductions for certain new (but not used) assets…
The end of the year is often the preferred time for tax planning. Reason: You may have the flexibility to shift income and deductions to your tax benefit. However, tax planning in 2011 is shrouded in doubt as talk of major tax reform heats up. At this writing, there has been no definitive resolution of…
What is your small business currently worth? It is difficult to put a price tag on a business that is not publicly traded. Typically, the value of a family-owned business will exceed the total value of the hard assets, such as equipment and inventory. In addition, assigning a value to intangible assets such as goodwill…
Business assets: Under Section 179 of the tax code, a business may “expense,” or currently deduct, the cost of qualified business assets placed in service during the year. For 2011, the maximum expensing allowance is $500,000. In addition, a business may still qualify for 100% “bonus depreciation” deductions for certain new (but not used) assets…
If you have been working a long time, you may be looking forward to retirement in the not-so-distant future. Hopefully, you will be in good health at that time and able to pursue your favorite activities. But the “golden years” may be tarnished if you are not careful. Here are five common mistakes that can…
Due to the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, business owners may be able to take advantage of renewed “bonus depreciation” deductions this year. In fact, this tax break is bigger than ever. The IRS recently issued new guidelines for bonus depreciation and expanded some provisions in the law. Background:…
