No One Factor Determines Contractor Status
Hiring someone as an independent contractor can have many advantages for employers. Among them are that independent contractors: Can be hired on a per-project basis and let go when the project is complete, May be more experienced workers who want to maintain a degree of independence and don’t require the supervision that is necessary with…
Consider Taxes before Converting Your Home to a Rental Property
Have you ever thought about becoming a landlord? This option may be tempting if your local real estate market is surging and rental rates are strong, especially if you’re already planning to relocate or downsize to a smaller home. Ideally, you’ll be able to shelter most or all of the rental income with tax deductions…
Negotiate Maximum Profit on Cost-Based Contracts
Are you negotiating maximum profit on your cost-based U.S. government contracts? When your contract amounts and prices are established based on estimated or actual costs, you are required to submit a proposal that includes a delineation of your proposed costs and profit. Federal agencies perform a cost analysis to determine the reasonableness of each element…
Time and Materials Contracts: Improper Labor Classification is Risky
Improper labor category classification under U.S. government time and materials (T&M) contracts can result in cost disallowance, investigation, fines — and even jail time. T&M contracts involve two elements: Time and Materials. Under U.S. government T&M contracts, the time portion is billed based on the labor category rates in the contract multiplied by the number…
Empower Employees with Star Teams
What has gone wrong in most workplaces with empowerment of employees and teams? Author Janelle Brittain raised this question, and then observed, “In the traditional hierarchical workplace environment, people often complained that they were powerless and, ‘if management would just listen to us and give us some authority,’ then everything would straighten out.” Brittain continued:…
Consider a 403(b) Retirement Option for Your Staff
Employer-sponsored plans play an increasingly significant role in retirement planning as individuals worry about the future of Social Security and their ability to finance the kind of retirement they envision. They also help employers attract and retain better employees, cutting the costs of having to find and train new hires. For certain tax-exempt institutions, one…
How to Set Up an IRS-Approved Family Loan
Today’s relatively low-interest-rate environment makes it easy to loan money to family members on favorable terms with full IRS approval. Here’s a rundown of what the law covers and why now might be a good time to set up loans. Nothing in the tax law prevents you from making loans to family members (or unrelated…
IRS Allows Exceptions for Missed Retirement Account Rollover Deadlines
You may know about the 60-day window for making tax-free rollovers of funds withdrawn from your IRA or other tax-favored retirement account. Here are a couple of things you might not know about the deadline: 1. The 60-day period begins the day after you receive funds from the account in question. That can be a…
Sharing Tax Issues in the Sharing Economy
Do you provide car rides through a mobile app, rent out your spare room using an online platform or repair computers for local businesses on demand? If so, you may be considered part of the “sharing economy” (also known as the Gig or on-demand economy). Participation in this emerging method of distributing services can be…
Encouraging Employees to Volunteer
Employers report improved employee morale as a result of their volunteer service activities. In addition, businesses which sponsor employee volunteerism report enhanced management and communication skills, and positive image-building in their communities. The organization Business Strengthening America reached those conclusions after surveying 800 businesses on their community volunteer activities. Citing benefits of employee volunteerism, 96…