Is a New Individual Health Plan in Your Future?
First the old news: Under the Affordable Care Act (ACA), employers with at least 50 employees (or full-time equivalents) are required to provide health benefits and pay for a good portion of the cost. And many smaller employers that aren’t required to offer health coverage do so anyway. Why? They may do it to compete…
How Does Your Business Handle Fringe Benefits?
The Federal Acquisition Regulation (FAR) 31.205-6(m) states that, except as provided otherwise (in FAR Subpart 31.2), fringe benefits are allowable to the extent that they are reasonable and required by: Law; An employer-employee agreement; or An established contractor policy. An example of a fringe benefit cost that is not allowed is the cost of a…
Helping Your Kids Achieve Future Financial Security
Young adults who start their careers weighed down by college debt have a tough time buying a home or initiating a retirement savings plan. That’s why, in 1996, Congress added Section 529 to the Internal Revenue Code, creating a new tax-advantaged college saving vehicle. More than two decades later, “529 plans” now collectively hold around…
How Elements of Control Affect Value
We’ve all heard the phrase that the “whole is greater than the sum of its parts.” But you might not know that the same theory can apply in the valuation of interests in a business. Control is Valuable When a publicly traded business is acquired in the whole by an outside buyer, it is often…
How to Structure a Business Asset Purchase with Taxes in Mind
Taxes are a major consideration in mergers and acquisitions (M&As). The parties generally can structure a business purchase as either: An asset purchase. The buyer can purchase all or some of the assets of the business. A purchase of stock (or another ownership interest). The buyer can purchase the seller’s ownership interest in the entity…
Achieve Sustainable Cost Cutting at Your Organization
Taking costs out of a business can be deceptively easy to do — at least initially. Cutting low-hanging fruit such as providing coffee in break rooms, consulting services, laying off temporary employees or removing a layer of management can result in considerable savings. However, these savings often aren’t sustainable. Slowly but surely, decisions will be…
Women in Business: Who’s the Boss?
Barriers for women in leadership positions are slowly being broken down in the United States. Women currently hold 102 seats in the House of Representatives (23.7% of the voting members) and 25 seats in the Senate (25% of the total). Four women also serve as non-voting delegates from American Samoa, Puerto Rico, the Virgin Islands…
Are Your Proposed or Incurred Costs Reasonable?
Can you demonstrate that your proposed or incurred costs are reasonable? If not, then you may not be able to negotiate a desirable price or get paid for your incurred expenses. Federal Acquisition Regulations (FARs) contain cost principles and procedures. The cost principles and procedures in FAR Subpart 31.2 and in agency supplements are used…
Politics Shouldn’t Be Business as Usual for Nonprofits
The presidential election of 2020 is just around the corner. Generally, not-for-profits sit on the political sidelines, but some organizations skirt the boundaries. The stakes for these borderline cases are high: If a nonprofit engages in political campaign activities, it risks its tax-exempt status — and perhaps its very existence. Here’s what you need to…
Prepare to Receive a Social Security Administration No-Match Letter
The SSA explains that it’s seeking to reconcile discrepancies between the names and Social Security Numbers (SSNs) it has on file with the names and SSNs that employers report. The purpose isn’t to support enforcement of immigration law, but rather to “properly post employees’ earnings to the correct record.” That’s an important distinction because if…