New – Small Business Newsletter Winter 2023 Edition
Full of timely and practical information, our Winter 2023 Small Business Newsletter covers a wide range of topics, from the Secure Act 2.0 article that outlines changes to retirement plans that may benefit small businesses, to our easy, convenient, and secure electronic process to send us your tax information. Click here to read the newsletter.
Federal Funds Rate Increased by 0.25%
On Wednesday, February 1, 2023, the Federal Reserve Board raised the Federal Funds rate by 0.25%. In turn, banks typically follow by raising their “prime lending rates” by the same 0.25%, which would make the new “Prime Rate” 7.75%. By comparison, the Prime Rate last year at this time was 3.25%. The Federal Reserve (the […]
Best Practices: How to Prepare for an Upcoming Audit #2
Our clients often ask us many wide-ranging questions, everything from guidance on new accounting standards to our favorite breweries. But the most common question we receive from audit clients is, how do we recommend they prepare for an upcoming financial statement audit? The best ways for a client to prepare for an audit include the […]
What is the FICA Tip Credit? #2
The FICA Tip Credit is a business tax credit for employer-paid Social Security and Medicare taxes on employee tips. What employers are eligible? If you had employees who are customarily tipped and were tipped for providing, delivering or serving food or beverages, and you paid Social Security and Medicare taxes on those tips, you are […]
IRS Announces Delay For Implementation of $600 Reporting Threshold For Third-party Payment Platforms’ Forms 1099-K #2
The following information is from IRS.gov, Issue Number IR-2022-226: WASHINGTON — The Internal Revenue Service today announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season. As a result of this delay, third-party settlement organizations will not be required to report tax year 2022 transactions […]
Contractor vs. Employee: What Are the Differences?
For a long time, there has been discussion and debate about whether an individual should be considered an employee or an independent contractor. The Internal Revenue Service and Department of Labor have a history of auditing this particular area as it has a distinction regarding payroll taxes, social security, worker’s compensation, etc. For this article, […]
Document Retention Policies for Businesses
Setting a document retention policy for a business is no simple task because, generally, there are no specific rules. In many cases, retention policies are based on years of “best practices.” What does come into play is where there is an applicable statute of limitations, a legal requirement defining how long a record should be […]
Student Loan Forgiveness Plan – What You Need to Know #2
Applications for the Federal student loan forgiveness program were suspended by the Biden administration on Friday, November 12, 2022, one day after a Federal judge in Texas struck down the program as unconstitutional. The Biden administration is appealing this decision. We present the following information in the event the program is able to lawfully reopen. […]
Charitable Deductions: Use Low Interest Rates to Your Tax Advantage #2
Certain planning techniques involve the use of interest rates to value interests being transferred to a charity or to private beneficiaries. While the use of these techniques does not necessarily depend on the interest rate, low interest rates may increase their value. Taxpayers can obtain a deduction by giving a partial interest in property to […]
Delayed COVID-19 Relief
Many businesses are asking why the relief requested during the COVID-19 outbreak has still not arrived and wondering if there are issues with their request. According to the U.S. Treasury Inspector General for Tax Administration (TIGTA), they confirm that some businesses are waiting for relief amid processing delays. There-fore, the lack of receipt of funds […]