It’s Not Too Late for an IRA Contribution
Most of the time an expense that may be tax deductible needs to be paid by the end of the year for which the expense will be claimed. However, there is an exception to that rule. IRA contributions for the prior year can be made after the close of the year if made by the return’s original filing due date for the year. Thus IRA contributions for 2022 can made by April 18, 2023. Normally [Read More]
ASC 842 Considerations and Impact
By: Mallory Salter ASC 842 is now in effect for all companies, updating standards for how organizations classify and record leases. After years of delaying the effective date, the new standards are finally being enforced for privately held companies, and the changeover can no longer be avoided. The impact of the new standard is proving to be significant, with even more ramifications than previously expected. It is vital that businesses take steps now to understand [Read More]
Don’t Ignore Household Employee Payroll Tax Rules
If you hire a domestic worker to provide services in or around your home, you probably have a tax liability that you don’t know about – or one that you do know about but are ignoring. Either situation can come back to bite you. When the worker is your employee, your liability includes both withholding and paying payroll taxes as well as issuing a W-2 after the close of the year. Sure, it is a [Read More]
What Your Construction Business is Missing
By: Sheryl Tschimpke The construction industry is hectic, with many projects and priorities to manage. You understand the impact that operations staff can have on your business, but are you missing out on the value that a solid accounting department provides? Investing in your accounting department can increase your success by enhancing business management, planning, and strategy. Benefits of Experienced Leadership in the Accounting Department Your accounting department is more than a cost center. Having [Read More]
Secure 2.0 Act of 2022 Introduces Key Changes for Workplace Retirement Plans
By: Mallory Salter The SECURE 2.0 Act of 2022 was signed into law on December 29, 2022, and introduces over 90 changes to the federal rules governing workplace retirement plans. This landmark legislation, which aims to expand coverage and increase retirement savings while simplifying and clarifying retirement plan rules, will bring sweeping changes for employers over the next several years. The legislation builds upon changes established by the 2019 Secure ACT and includes both mandatory [Read More]
Haven’t Filed Tax Returns for Multiple Years? Here’s What You Need to Do Next
You'd be hard-pressed to find someone who actually enjoys the process of filing taxes. Having said that, it's absolutely something that you're supposed to do like clockwork every single year. Of course, there is a myriad of different reasons why you may have fallen behind. You could be going through something of a major life transition and simply were unable to meet the filing deadline. Maybe you filed for a much-needed extension and then other [Read More]
Are You Worried You Won’t Have Enough Money Saved for Retirement?
All of us dream of one day being able to retire - to finally be able to relax and enjoy the lifestyle we worked so hard for. However, you'll need a significant amount of money to do it, which is where a lot of Americans begin to worry. Saving for retirement is a constant fear for many out there, especially during periods when the economy is hurting. The good news is that not everyone needs [Read More]
Are You an S Corporation Stockholder? Are You Taking Reasonable Compensation in the Form of Wages?
S corporation compensation requirements are often misunderstood and abused by owner-shareholders. An S corporation is a type of business structure in which the business does not pay income tax at the corporate level and instead distributes (passes through) the income, gains, losses, and deductions to the shareholders for inclusion on their income tax returns. If there are gains, these distributions are considered a return on investment and therefore are not subject to self-employment taxes. However, [Read More]
Be On the Outlook for Tax Reporting Forms
With tax season upon us, documents reporting income, sales and other items needed for your 2022 tax return should have arrived or will be arriving soon. Be on the lookout for them and be careful not to accidently discard any. Here are some of the common tax forms you need to be watching for depending upon your particular circumstances. Form W-2 - If you were employed in 2022, you will receive a W-2 from each of [Read More]
What You Need to Know About Converting an S Corp to a C Corp
The type of business that you're running has major implications in virtually all areas of your operations, especially when it comes to federal taxes. An S Corporation (or S Corp for short) is one that passes corporate income, losses, deductions, and credits to its shareholders. A C Corporation (or C Corp for short) is one where the owners are taxed separately from the business itself. Having said that, just because you chose one type of [Read More]