Tax Law Changes Meal and Entertainment Deductions
Once upon a time, taxpayers could generally deduct 50% of business-related meal and entertainment expenses. However, several exceptions allowed larger deductions in certain circumstances. Then came the Tax Cuts and Jobs Act (TCJA), which dramatically shifts the playing field for expenses paid or incurred after December 31, 2017. The new law also creates some uncertainties,…
New Law Gives Eligible Pass-Through Businesses a Special Tax Break
Federal income tax rates for C corporations have been reduced to a flat 21%, starting in 2018 under the Tax Cuts and Jobs Act (TCJA). But what about pass-through businesses? Calculating the QBI Deduction: It’s All Relative To illustrate how the qualified business income (QBI) deduction works, let’s suppose you and your spouse file a…
Protect Your Most Prized Possessions
One of the most costly — yet easily prevented — disasters for any business is the failure to secure ownership of intellectual property (IP). Unless you take the proper legal steps, you could find that your company doesn’t own its most prized possessions. Here are the details you need to know. Under the law, the…
Smart Ways to Handle Off-Site Employees
With today’s technology, many companies and their employees have figured out that at least some work can be done from home. The idea seems an ideal solution for some work-related problems. Working from home eliminates commuting time and expense, reduces day-care problems and requires less office space. But along with the benefits come some challenges:…
The Spoof that Can Harm Your Business
Your business spends a great deal of time and effort preserving brand integrity and keeping your customers satisfied. But there is an insidious Internet crime that can ruin your company’s goodwill and cost you a fortune. AOL and PayPal Pretenders In one scam, PayPal customers received e-mail messages with the company logo claiming that due…
ERISA Basics for Employers
If you’re a U.S. employer and you offer any kind of pension benefit to your employees, it’s critical that you have an understanding of the Employee Retirement Income Security Act of 1974 (ERISA). The failure to know and fulfill your obligations and responsibilities under the landmark law may lead to significant liability. Background and Origin…
Set Up Strict Oversight of Contract Compliance
Government contracts generally require stringent internal oversight measures to ensure that your buisness complies with contract terms and conditions – as well as the expectations of the government agency. For example, contracts generally require close internal management and control of estimates, material management and accounting systems. Here Are Four Tips: Obtain the guidance used by…
New Law Eases the Individual Alternative Minimum Tax
Unfortunately, the Tax Cuts and Jobs Act (TCJA) retains the individual Alternative Minimum Tax (AMT). But there’s a silver lining: The AMT rules now reduce the odds that you’ll owe the AMT for 2018 through 2025. Plus, even if you’re still in the AMT zone, you’ll probably owe less AMT than you did under the…
To Retain Top Talent, Adopt Total Compensation Statements
Do your workers understand the full extent of the contributions you make to their financial security? Employees understand the cash compensation they receive each payday. But studies show that few workers grasp just how much their employer pays into health insurance, pension plans, employer matches, group wellness plans, employee assistance plans and other costly workplace…
Beware of Penalties in Transactions With Not-for-Profits
Tax law provisions and IRS regulations may have a significant impact on improper transactions between top officials and a tax-exempt organization. Under old rules from years ago: When the IRS determined that a top official engaged in a transaction and received an unfair benefit given his or her position in the organization, the only recourse…