Tax Court Says Law Firm LLP Partners Owe Self-Employment Tax
The Internal Revenue Code’s self-employment (SE) tax provisions were enacted long before the existence of limited liability partnerships (LLPs). So there are questions about how to apply the SE tax rules to LLP partners. One Tax Court decision delivers some much-needed clarity, although it does not deliver news that is friendly to law firm partners….
Unlock the Biggest Possible Deduction for a Home Office
The IRS recently issued a reminder about claiming the home office deduction. In particular, it explained a simplified method that offers a time-saving option. But many taxpayers who maintain a home office fare better tax-wise by deducting expenses under the regular method. Others may not be eligible to deduct any home office expenses. Here’s why….
Get Up and Running After a Disaster
If your business is hit by a hurricane, windstorm, blizzard, or other natural disaster, or if it falls victim to arson or terrorism, you might have to close up shop for a while. As a result, you could suffer a major loss of income. One of the keys to continuing as a thriving enterprise after…
Kiosks Can Provide Self-Service HR
When you think of a kiosk, you may think of a shopping mall stand, bank ATM, newsstand or stamp vending machine. But how often do you think of a kiosk on a factory floor that allows the overnight shift to access their work records, or a kiosk in a retail establishment that accepts and categorizes…
Does Spyware Evidence Hold Up in Court?
We all know that spyware programs can surreptitiously monitor the activities of computer users, but not everyone is aware that using spyware may be a violation of your state’s anti-wiretapping laws. If you collect information this way and hope to use it to prove a case in court, you may find yourself without admissible evidence….
Improving 401(k) Performance: A Timely Refresher Course
In a classic study of 401(k) participant behavior by the National Bureau of Economic Research, employees’ tendency to “follow the path of least resistance” was well documented. For example, if new employees aren’t automatically enrolled in a 401(k) plan when they join the company, many don’t bother. But when automatically enrolled — surprise! — they…
Benefits Education Boosts Employee Loyalty
These days, workers are drowning in information. A generation ago, workers had a narrower range of benefits, but also had to wade through much less information to make decisions. Perhaps they had a retirement plan, a health plan, and a dental and vision plan – and not much else as part of an employment package….
Do Not Panic If You Receive a Benefit Audit Notice
Receiving a notice that the IRS is auditing an employee benefit plan is news that no employer wants to receive. If your company does get such a notice, knowing what to expect and preparing for the audit itself are the best ways to help the process go as smoothly as possible. In one IRS newsletter,…
Can Your Research Credits Offset Your Payroll Tax Bill?
Does your small business engage in qualified research activities? If so, you may be eligible for a research tax credit that can now be used to offset your federal payroll tax bill. This relatively new privilege allows research credits to benefit small businesses that may not generate enough taxable income to use the credits to…
Prepare for the Unexpected
Think of it as a prenuptial agreement for a family business — a mechanism to reduce hard feelings and provide for an equitable distribution of assets. Officially, it’s called a shareholders’ agreement and it lays out the ground rules of a family business in terms of governance, succession, the transfer of assets, liquidity and other…