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…
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…