Understanding and controlling the unemployment tax costs of your business
Posted October 19, 2019 / No comments
As an employer, you must pay federal unemployment (FUTA) tax on amounts up to $7,000 paid to each employee as wages during the calendar year. The rate of tax imposed is 6% but can be reduced by a credit (described below). Most employers end up paying an effective FUTA tax rate of 0.6%. An employer
Read MoreShop carefully when looking for an EAP vendor
Posted October 11, 2019 / No comments
In today’s high-anxiety world, it’s not uncommon for employees to battle personal problems such as substance dependence, financial and legal woes, and mental health issues. These struggles can negatively affect their productivity and the working environment around them. Employers can help by offering an employee assistance program (EAP). This benefit seeks to assist at-risk employees
Read MoreResponding to an employee’s request for a service dog
Posted October 4, 2019 / No comments
There are thousands of service dogs hard at work in the United States today. Assuming it hasn’t happened already, you may eventually field a request from either a new hire or existing employee to bring one of these animals into your workplace. It’s critical in such instances to take the request seriously and understand your
Read MoreCash balance plans offer an intriguing pension possibility
Posted September 30, 2019 / No comments
Pension plans aren’t as popular as they used to be. For years now, employers have been moving from defined benefit plans (pensions) to defined contribution plans such as 401(k)s. But one type of hybrid pension that remains relatively popular is the cash balance plan. Examining the concept With a cash balance plan, the employer commits
Read MoreSmall businesses: Can’t offer an FSA? Consider a QSEHRA
Posted September 25, 2019 / No comments
Like many small business owners, you may be unable to sponsor a major medical plan at this time. Perhaps you’ve thought about sponsoring a health Flexible Spending Account (FSA) instead. Unfortunately, under federal regulations, you may not be able to do that either. There is, however, a relatively new option available to you. Compliance rationale
Read MoreBudgeting is key to a successful start-up
Posted September 24, 2019 / No comments
More than half of recent college graduates plan to start a business someday, according to the results of a survey published in August by the American Institute of Certified Public Accountants (AICPA). Unfortunately, the AICPA estimates that only half of new businesses survive the five-year mark, and only about one in three reach the 10-year
Read More5 ways to withdraw cash from your corporation while avoiding dividend treatment
Posted September 23, 2019 / No comments
Do you want to withdraw cash from your closely held corporation at a low tax cost? The easiest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient, since it’s taxable to you to the extent of your corporation’s “earnings and profits.” But it’s not deductible by the corporation. Different approaches
Read MoreHow to treat your business website costs for tax purposes
Posted September 23, 2019 / No comments
These days, most businesses need a website to remain competitive. It’s an easy decision to set one up and maintain it. But determining the proper tax treatment for the costs involved in developing a website isn’t so easy. That’s because the IRS hasn’t released any official guidance on these costs yet. Consequently, you must apply
Read MoreKeep your head in the game to attract IT talent
Posted September 21, 2019 / No comments
There’s little doubt that nearly every type of employer will continue to rely on technology to beat — or even just keep up with — their competition. This means not only acquiring the right hardware and software, but also hiring and retaining the brightest IT people. Indeed, organizations that fall behind in tomorrow’s marketplace may
Read MoreThe key to retirement security is picking the right plan for your business
Posted September 3, 2019 / No comments
If you’re a small business owner or you’re involved in a start-up, you may want to set up a tax-favored retirement plan for yourself and any employees. Several types of plans are eligible for tax advantages. 401(k) plan One of the best-known retirement plan options is the 401(k) plan. It provides for employer contributions made
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