Sending COBRA Notices to Qualified Beneficiaries
Question: As a large company with operations in many states, we’re the administrator of several medical plans. When we provide a COBRA election notice to a qualified beneficiary, we retain a copy of the notice along with a certificate of mailing showing when and to whom the notice was mailed. How long should we keep these…
Coming Soon: Deadline to Reverse 2016 Roth Conversions
Do you regret converting your traditional IRA into a Roth IRA? Fortunately, a taxpayer-friendly aspect of the Roth conversion rules is that you have until October 15 (adjusted for weekends) of the year following the year of a conversion to reverse it. In other words, the deadline for reversing any 2016 Roth conversions is October 16,…
The Advantages of Online Benefits Enrollment
The data is in: According to a study by the Life Insurance Marketing and Research Organization, seven out of 10 workers surveyed said they want the option of enrolling in workplace benefits programs online, rather than having to do it on paper or in person in the human resources office. Researchers also found that: 82% of…
Standards for Accountability
Donors understandably demand accountability from the not-for-profit organizations they support. Some turn to the Better Business Bureau (BBB) for guidance. Its Wise Giving Alliance has established standards by which it evaluates tax-exempt 501(c)(3) organizations that submit a report. You might find it useful to see how your organization measures up to the standards. Presented in…
Careful Planning Results in Successful Mailings
Your organization probably spends vast amounts of time and money producing direct mail campaigns to raise funds. Those costs are justified if you get the response you’re seeking. One way to maximize the effectiveness of direct mail is to become savvy about mailing list purchases. Reaching people in the right target market and reaching them in…
Work Opportunity Tax Credit: What Business Owners Need to Know
The Work Opportunity tax credit (WOTC) is a federal income tax credit that’s available to businesses that hire members of certain “targeted” groups. Here’s how your business may be able to benefit from this potentially lucrative tax break. WOTC at Work Calculating the Work Opportunity tax credit (WOTC) can be confusing. Here’s an example to illustrate…
Track Travel Costs Closely
Travel costs are frequently a target of incurred cost audits. Auditors often report finding lodging costs that exceed federal per diem rates. To avoid that, your company should establish internal guidelines to ensure it can support estimated employee lodging costs, maximize cost recovery and avoid penalties for submitting expenses that are not allowed. Tips: Establish a written…
Bid Protesting in 3 Forums: Take Consecutive Bites of the Apple
Most federal government contractor don’t realize it, but the bid protest system is set up to permit consecutively protesting the same procurement in three separate forums: The individual agency. The Government Accountability Office (GAO). The U.S. Court of Federal Claims (Court). Even though spaced out over a long time, all of the protests can be timely,…
Ten Sources of Tax-Free Income
There are still ways to earn income that is free from federal income tax. With the various tax increases that have taken effect in recent years, tax-free income opportunities are more valuable than ever. Here are 10 sources of non-taxable income. Prorated Home Sale Exclusion If you don’t qualify for the maximum $250,000 or $500,000 gain…
Avoid Retirement Account Rollover Pitfalls
After retiring or leaving a job, your first big tax question might be: What should I do with the money in qualified retirement plan accounts with my former employer? These accounts include 401(k)s, profit-sharing plans and stock bonus plans. The standard advice is to roll everything over into an IRA. That advice generally makes sense, because you can…