Small Employers Get 7-Day Safe Harbor for 401(k) Deposits
Small employers* now have added certainty in knowing their time frame for transmitting employee 401(k) contributions to the plan. Compliance with deadlines is important, because holding on to employee contributions too long constitutes a prohibited transaction that could result in penalties. The U.S. Department of Labor’s establishment of a safe harbor period eases up the…
New Word for New Ideas
“Situations refuse to stand still. We need more organic and imaginative ways of adapting to and making continual sense of our workplace,” observed Gareth Morgan, author of “Imaginization: New Ways of Seeing, Organizing, and Managing.” Fusing “imagination” and “organization,” Morgan created the term “imaginization” to describe a problem-solving technique of thinking in new images or…
A Checklist of Duties with Tax and Governance Implications
Documentation and accountability are always important in business, but even more so for a not-for-profit agency. The sheer number of duties can be daunting. That’s why it’s crucial to have tools which allow you to stay on top of the details. Here’s a chart which may help you stay organized and make tracking easier. Consult…
10 Simple (and Fun) Ways to Cut Taxes This Summer
It’s already starting to feel like summer in many parts of the country. But the forecast for Washington remains unclear as officials continue to discuss various tax-related issues. No matter what happens in Washington, don’t get stuck in a holding pattern yourself. Give some attention to business and personal tax planning this summer. Here are…
Dealing with Indirect Rate Ceilings
During the pre- and post-award stages of contracting, you must consider the impact of indirect rate ceilings. Under flexibly priced U.S. government contracts, your cost proposals include estimates for labor hours and material as well as the application of indirect rates to estimate indirect costs. As a result, the federal government anticipates a certain level…
Subcontracting: Avoid Allegations of Excessive Pass-Through Charges
Do you subcontract a large portion of your U.S. government contract work to outside organizations or individuals? If so, you may be found to have incurred excessive pass-through charges, which could affect your recovery of a portion of your costs and related profit. In accordance with Section 866 Duncan Hunter National Defense Authorization Act for…
Notify the IRS if You Change Your Address
It’s important to notify the IRS if you move and change your address. Under tax law regulations, a taxpayer’s last known address is the one that appears on the tax return you filed most recently — unless the IRS is otherwise notified. In one court case, it was made clear that the burden of informing…
Will You Have to Pay Tax on Social Security Benefits?
Some people are under the misconception that Social Security benefits are always free from federal income tax. However, depending on how much income you have from other sources, you may have to report up to 85% of your benefits as income on Form 1040 and pay the resulting federal income tax. If this happens, you’re…
Financial Survival Tips for Recent College Graduates
Graduation can be one of the most exciting — and intimidating — times in your life. You’re officially an adult, and with that new-found independence comes financial responsibilities. No pressure, but the decisions you make today about spending and saving can mean the difference between struggling for the rest of your life and building a…
Establishing Residency for State Tax Purposes
In the age of telecommuting and hybrid work, many employees may work in one state, but spend significant time in another. Figuring out legal residency can be complicated, but it is important to understand how to establish residency for state tax purposes. For example, consider “Pihla,” who is a long-time resident of Virginia. She works…