‘Partnership’ Culture is Best for Success
Certain workplace culture characteristics consistently bring about higher financial performance, according to a study done by one researcher. Organizational psychologist Dr. Richard Petronio surveyed 200,000 employees at 50 companies in a cross-section of industries — high-tech, health care, insurance, transportation, manufacturing, finance, services and retail. The study identified the workplace culture characteristics that correlate with financial…
IRS Issues Guidance Deducting Meals Bought During Entertainment
The IRS recently provided transitional guidance about the deductibility of expenses for business meals that are purchased in an entertainment context. (IRS Notice 2018-76) The Basics Businesses can deduct ordinary and necessary expenses paid or incurred during the tax year in carrying on a trade or business. Before it was amended by the Tax Cuts and…
Use an Old Rule to Add Value at Work
Here’s a trivia question: Name the management consultant, credited with launching the Pareto Principle, who lived to be more than 100 years of age? Answer: Joseph M. Juran. Second question: What’s the Pareto Principle? Third question: What makes the Pareto Principle important to employers, managers, and supervisors? Decades ago, Juran traveled to Japan where he began helping Japanese…
Guard Against Age-Bias Suits When Downsizing
While a bad economy may be one of the biggest reasons companies downsize, there are other reasons, including mergers and acquisitions, changes in management, and outsourcing. Problems can arise, however, if laid-off employees believe they are victims of discrimination. Employees who have been with the company for a long time may feel they are victims under…
Change in Allowable Airfare: What’s the Impact?
Documentation can be challenging. A final rule was published in December of 2009 that revised the FAR cost principle on Travel Costs (FAR 31.205-46). The revision replaced the language “lowest customary standard, coach, or equivalent airfare” with “lowest priced airfare available to the contractor.” There has been much discussion as to whether the revision places additional…
Negotiate the Terms of a D&O Policy
A not-for-profit organization needs insurance to protect its directors and officers from personal liability in the event of a lawsuit. Don’t fall into the trap of thinking this coverage isn’t necessary. Some states have “safe harbor” statutes that are supposed to protect directors and officers of not-for-profit organizations from lawsuits. However, these statutes are not a substitute…
Voluntary Benefits Proving Increasingly Popular With Employees
Voluntary benefits are benefits that are offered to workers and their families on a purely opt-in basis. In many cases, they represent little or no additional cost to the employer, but the employer nevertheless is able to show a substantially broader list of benefits in its value proposition to employees. For example, millions of workers own…
Tax Law Allows Employees to Defer Income from Equity-Based Pay
Equity-based compensation can be a great way to reward and retain valued employees, especially for companies with limited cash on hand. And the Tax Cuts and Jobs Act (TCJA) makes it even more advantageous by offering a new tax-favored alternative to employees who receive these awards. Under Internal Revenue Code Section 83(i), eligible employees can elect…
Claiming the New Employer Tax Credit for Family and Medical Leave
The Tax Cuts and Jobs Act (TCJA) establishes a new federal income tax credit for employers that provide qualifying paid family and medical leave benefits to their employees. This credit is only available for two employer tax years — those beginning between January 1, 2018 and December 31, 2019 — unless Congress extends the deal. Here…
Create an Accountable Plan to Reimburse Employees for Business Expenses
Did you know that the Tax Cuts and Jobs Act (TCJA) eliminated itemized deductions for employees who incur unreimbursed expenses for company business for 2018 through 2025? Fortunately, you can set up a so-called “accountable plan” to minimize the adverse effects of this TCJA provision. Here’s how the accountable plan deal works. Playing by a New Set…