Hire Your Kids and Save Taxes
Here’s a great tax-saving idea for those who have teenagers who can work part-time in the family business. Hire the kids as legitimate employees. This strategy works best if your business operates as: A Few Points to Remember 1. Your child’s wages must be reasonable for the work performed. So this idea works best with teenagers who…
Shave Payroll Costs for Shared Employees
If you run your business operations through two or more corporations, the different entities may share some of the same employees. In that case, you can save payroll taxes by using a “common paymaster.” IRS Definition “Concurrent” employment is defined by the IRS as the “contemporaneous existence of an employment relationship between an individual worker and…
Need Cash Fast? Consider Selling Your Receivables
From time to time, nearly every business experiences cash shortfalls due to the timing of cash payments vs. receipts. Why do shortfalls happen? It all goes back to the cash conversion cycle. Most businesses pay workers on a weekly or biweekly basis. They also try to pay suppliers and vendors in accordance with the negotiated…
Loyalty, Fitness and Employee Welfare
The costs of maintaining employee health, morale and well-being can generally be claimed, while recreation costs and gifts cannot. The difficulty sometimes is in distinguishing between them. FAR 31.205-13 defines generally allowable employee expenses and credits as expenses for”activities designed to improve working conditions, employer-employee relations, employee morale, and employee performance (less income generated by these…
Take Advantage of Government Commercial Purchases
What makes products or services commercial for the purposes of government acquisitions? Generally speaking, they must be similar, but not necessarily identical, to those sold in the commercial market and used by the general public or non-government agencies. Federal Acquisition Regulation (FAR) Part 12 establishes purchasing policies for government agencies that closely resemble those of the…
Dialing in on Smartphones for Kids
Do your kids (or grandkids) have a smartphone? On average, American children receive their first smartphone at the age of 10, according to a recent study by market research firm Influence Central. Smartphone Use Is Up Market research firm Influence Central recently published its 2016 Digital Trends Study. These five findings show how kids are increasingly…
What To Do With Unwanted Donations
Everyone agrees that donations are the lifeblood of not-for-profit organizations. At the top of most wish lists is cash, and depending on your situation, you may accept other assets and in-kind contributions. But what should you do when offered donations that are not usable or appropriate? For example, how should a charity react when it is…
What if an Employee Has Military Duty?
What if an Employee Has Military Duty? If you have an employee who has requested a leave of absence from work to attend annual training, inactive duty training, or any other event ordered by the unit commander, you are required to grant the leave. That’s federal law under the Uniformed Services Employment and Reemployment Rights Act…
Does Your Board ‘Get’ Your Financials?
Accurate, relevant and timely financial information is key to making good decisions for not-for-profit executives and board members. But do all of your board members really understand the numbers they receive and what they mean to your organization? For example, let’s say you’re trying to determine how and when to initiate a new program? Do the…
Help Your Kids Build a Fortune With a Roth IRA
If you have teenage children or grandchildren with part-time jobs, there’s a tax-favored way to help them save money for college, a first home — and even retirement. By socking away some of their earnings in a Roth IRA, your youngsters can begin a savings plan that can grow into a small fortune. Roth IRAs, which…