Important Tax Figures for 2019
The following table provides some important federal tax information for 2019, as compared with 2018. Many of the dollar amounts are unchanged and some changed only slightly due to inflation. Social Security/ Medicare 2019 2018 Social Security Tax Wage Base $132,900 $128,400 Medicare Tax Wage Base No limit No limit Employee portion of Social Security 6.2%…
Keep Your Gear in Top-Notch Condition and Save Money
If your company has contracts for maintaining and servicing your equipment and vehicles, chances are, you’re spending more than you need to. A sure-fire way to save money is to hire your staff to do the work for you. Not only will in-house maintenance cut costs, it’s more convenient and boosts efficiency. For example, your business…
Tread Carefully If Firing an Employee on FMLA Leave
Deciding to terminate an employee is generally risky. But the risk level associated with terminating an individual who has requested leave under the Family and Medical Leave Act (FMLA) is markedly greater, as illustrated in one court case. Plaintiff Terminated The employer was a not-for-profit organization that provided programs and services to people with developmental disabilities….
Tax Court Rules Attorney’s Charitable Gift is Not Valid
Attorneys are frequently given documents and copies of materials that may have value for historic purposes. Can they donate them to charitable organizations, such as libraries, and claim a tax deduction? The U.S. Tax Court answered that question in a case involving Timothy McVeigh, who was convicted and executed for his role in the April 1995…
Are You Owed Money from a Business that Filed for Bankruptcy?
Suppose you have been doing business with a company that owes you money or has been late in paying for services that you have provided. You might have even filed a lawsuit to obtain the payments. But then you receive a notice that the company has filed for bankruptcy. This article will explain some of the…
How a Budget Can Contribute to Your Success
One reason many people disdain the budgeting process is that they associate budgets with restraint — that is, not spending money for something because it’s not in the budget. However, if you’re calling the shots, you can blow your budget as much as you want on the spending side. And there are times when it’s essential…
Family Ties are Severed in Stock Sale
Under tax law, there are several provisions that treat transactions between “family members” differently. Although it may seem simple to determine who your relatives are, two brothers found out in Tax Court that they aren’t related for purposes of one such provision. The 2005 case involved a net operating loss (NOL) claimed by the family corporation….
Gain Employee Loyalty with Commuting Tax Breaks
Commuting can be a nightmare for employees. Your company can help by offering your staff members some financial relief from their commuting hassles. Employees appreciate this benefit and there’s a bonus for your company: You can save money on payroll taxes. Similar to a cafeteria plan election, staff members can have money deducted on a pre-tax…
Gender-Based Pay Discrimination Allegations: Is Your Business Vulnerable?
Laws and regulations governing gender-based pay equality have been on the books for decades. But equal pay for men and women has become a hot button in the business world, thanks to the #MeToo movement and some recent surveys documenting widespread pay disparity. Recent Equal Employment Opportunity Commission (EEOC) gender-based discrimination allegations suggest that many employers…
Classification of Workers: Could Section 530 Come to the Rescue?
The IRS and employers often are at loggerheads over the classification of workers as employees or independent contractors. Typically, many employers want to to treat workers as independent contractors, while the IRS often determines that workers are misclassified employees. Sometimes, the issue winds up in the courts. Fortunately, there might be a way for employers…