Are you having trouble motivating the troops? Keeping the workplace energy level high—while continuing to churn out the merchandise or provide valuable services—remains a constant struggle for many employers. Of course, it starts at the top because business managers generally set the tone for the workplace. Look inward at yourself first before looking outward. Here…
The mandate for some employers to provide affordable health insurance coverage to workers will take effect in the near future. However, for some firms, it will be a case of later rather than sooner. Background: Under the Patient Protection and Affordable Care Act of 2010 (the PPACA), an employer with 50 or more full-time employees…
Be aware of recent changes in the use-it-or-lose-it rule for flexible spending accounts (FSAs). Generally, if there is a balance in a health care FSA at the end of the year, the funds are forfeited by the FSA participant. Due to a recent change, the IRS authorized employers to grant a grace period of up…
The answer to the question posed in the headline is an easy one: A buy–sell agreement can be immediately beneficial to a business owner contemplating a sale of the operation. What’s more, it can provide significant benefits even if you plan to keep a business interest and eventually pass it to the younger generation. Basic…
Remember those generous personal and dependency exemptions you have claimed in the past? Under new rules taking effect on 2013 federal income tax returns, exemptions are reduced for certain high-income taxpayers. However, depending on your circumstances, you may still be in line for a significant tax break. Basic rules: For starters, every taxpayer is entitled…
The benefits of shifting to S corporation status are well known. Shareholders are taxed like partners in a partnership, and there is no corporate-level tax. Alert: The date for electing S corp status for 2014 is March 15, 2014. After that, the election generally will not take effect until 2015. Special criteria must be met…
How do you separate interest expenses on your 2013 tax return? There are four main categories for taxpayers to consider. (Technically, there are several other types of “interest” in the tax law.) Here is how it breaks down. 1. Personal interest: If an interest expense does not fall into one of the other three categories,…
For a qualified small-business owner, a home office deduction can result in significant annual tax savings. But there’s a new twist on 2013 returns: A taxpayer may use a simplified method for deducting home office expenses, although this is not always the best choice. Background: To qualify, you must use the office regularly and exclusively as…
Higher Wage Base—No surprise: The Social Security wage base has increased again to $117,000 in 2014 (up from $113,700 in 2013). At least the tax rate for employers and employees remains the same at 7.65% on amounts up to the base and 1.45% above that. Another payroll factor: A 0.9% Medicare surtax applies to single…
How do you separate interest expenses on your 2013 tax return? There are four main categories for taxpayers to consider. (Technically, there are several other types of “interest” in the tax law.) Here is how it breaks down. 1. Personal interest: If an interest expense does not fall into one of the other three categories,…
