Develop a Strong Hand to Negotiate Loan Covenants
If you are about to ask for a business loan, expect to deal with the issue of covenants — constraints lenders impose on your company to keep it operating within specified financial ratios and to prevent it from taking certain actions. These clauses are meant to help the lender mitigate risk and get its money…
Two Important Laws: Does a Contractor Have to Follow Them?
Regulations are unquestionably mandatory. There are two important laws that federal contractors and subcontractors must be aware of: The Davis-Bacon Act applies to U.S. Government contracts in excess of $2,000 for the construction, alteration or repair (including painting and decorating) of public buildings or public works in the United States. (40 U.S.C. – 3141 et…
Cut Workers’ Comp Costs: 9 Tips
Workers’ Compensation: It’s always a potential threat for large losses. And when Workers’ Comp costs get out of control, it can become a challenge to reduce them. Accept the challenge to reduce Workers’ Comp costs, or to hold down already low Workers’ Comp costs. How? Here are some strategies to help you and your business…
Dirty DozenTax Scams to Watch For
Every year, the Internal Revenue Service releases its list of tax scams, spotlighting the myriad ways that people try to separate you from your money.1 The 2018 “Dirty Dozen” Identity Theft Using your personal information, an identity thief can file a fraudulent tax return and claim for a refund. If you’ve been a victim of…
What Is Your Investment IQ?
Investing in the financial markets is now part of everyday life. Yet, many Americans remain in the dark about investment products and how they work. Interested in testing your knowledge? When a company goes bankrupt, who gets paid first?¹,² Preferred stockholders Bond owners Secured creditors Suppliers and contractors Which of the below is one difference…
Age 50 or Older? Consider Extra Retirement Contributions
2019 Contribution Limits Traditional and Roth IRAs $6,000 (up from $5,500 in 2018) 401(k), SARSEP, 403(b) Plan Deferrals & 457 Plan deferrals $19,000(up from $18,500 from 2018) SIMPLE deferrals $13,000 (up from $12,500 in 2018) Here’s an important reminder for those who want to max out before-tax contributions to employer-sponsored salary retirement plans, which…
Is it Time to Rebid Your Vendor Contracts?
While it’s great to have a good rapport with your vendors, it’s important to ensure the relationship remains businesslike. Vendors who know there is a threat that they could lose your contract are more likely to focus on staying competitive. And when the vendor is, for example, a retirement plan third-party administrator or recordkeeper, you’ve…
Getting Employees Back in the Loop
Employees returning to their jobs after a long absence can face a series of challenges that require good management. The Problem During a temporary transfer, maternity leave or sabbatical, employees lose touch with changes in the office and in fellow employees’ lives. New relationships and work dynamics have been formed. The successful manager needs to…
SIMPLE IRA vs. Solo 401(k): Which Is Right for Your Small Business?
Small business owners have several options for their retirement plans. Two tax-smart and flexible alternatives are SIMPLE IRAs and solo 401(k) plans. If you’re eligible for these types of plans and you want to maximize your tax-deferred savings, which makes more sense? Here’s a series of side-by-side comparisons to help you decide. Eligibility Requirements SIMPLE…
Sell (or Buy) a Corporate Business With a Tax-Free Reorganization
There are two basic ways to sell an incorporated business — sell the assets or sell the stock. For two good tax reasons, sellers usually prefer stock sales: Assuming you’ve owned the shares for more than a year, your profits will generally be taxed at a maximum federal rate of 20%. This applies equally to…