11
June
June
Tax
05
June
June
Linda Zevnik CPA CSA
Employers: Beware of a harsh payroll tax penalty
If federal income tax and employment taxes (including Social Security) are withheld from employees’ paychecks and not handed over to the IRS, a harsh penalty can be imposed. To make matters worse, the penalty can be assessed personally against a “responsible individual.” If a business makes payroll tax payments late, there are escalating penalties. And […]
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21
May
May
David Reape CPA
Hire your children this summer: Everyone wins
If you’re a business owner and you hire your children (or grandchildren) this summer, you can obtain tax breaks and other nontax benefits. The kids can gain on-the-job experience, save for college and learn how to manage money. And you may be able to: Shift your high-taxed income into tax-free or low-taxed income, Realize payroll […]
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14
May
May
Don May
Tax Planning Opportunity for Small Manufacturers
The TCJA provides small manufacturers exemptions from the use of full absorption method of inventory costing (§471) and uniform capitalization (§263A). A small manufacturer is any manufacturer with average annual gross receipts for the three prior tax years under $25 million. Inventory Costing Under TCJA Qualifying taxpayers can elect out of §263A by following the […]
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14
May
May
David Reape CPA
Consider a Roth 401(k) plan — and make sure employees use it
Roth 401(k) accounts have been around for 13 years now. Studies show that more employers are offering them each year. A recent study by the Plan Sponsor Council of America (PSCA) found that Roth 401(k)s are now available at 70% of employer plans, up from 55.6% of plans in 2016. However, despite the prevalence of […]
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