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Small businesses: Cash in on depreciation tax savers

2020- 11/30 As we approach the end of the year, it’s a good time to think about whether your business needs to buy business equipment and other depreciable property. If so, you may benefit from the Section 179 depreciation tax deduction for business property. The election provides a tax windfall to businesses, enabling them to…

Lessons of 2020: Change management

2020 – 11/25 The year 2020 has taught businesses many lessons. The sudden onset of the COVID-19 pandemic followed by drastic changes to the economy have forced companies to alter the size of their workforces, restructure work environments and revise sales models — just to name a few challenges. And what this has all meant…

Vacation Buy Back

2020 – 11/23 How should employers treat “vacation buy back” for tax withholding purposes? Some companies are offering employees the option of “cashing in” accrued vacation time because many are working remotely due to COVID-19. For payroll purposes, employers should treat the payments as regular wages. Whether the vacation leave is taken or not, the…

Deductible Expenses & PPP Loans Forgiveness

2020 – 11/20 In a Revenue Ruling, the IRS clarified when a taxpayer that received a Paycheck Protection Program (PPP) loan may deduct otherwise deductible expenses if, at the end of the tax year, the taxpayer expects to receive forgiveness of the covered loan based on the otherwise deductible expenses. In a nutshell, the IRS…

Putting the finishing touches on next year’s budget

2020 -11/18 By now, some businesses have completed their 2021 budgets while others are still crunching numbers and scrutinizing line items. As you put the finishing touches on your company’s spending plan for next year, be sure to cover the finer points of the process. This means not just creating a budget for the sake…

Health Savings Accounts for your small business

2020 – 11/16 Small business owners are well aware of the increasing cost of employee health care benefits. As a result, your business may be interested in providing some of these benefits through an employer-sponsored Health Savings Account (HSA). Or perhaps you already have an HSA. It’s a good time to review how these accounts…

Should you go phishing with your employees?

2020 -11/09 Every business owner is aware of the threat posed by cybercriminals. If a hacker were to gain access to the sensitive data about your business, customers or employees, the damage to your reputation and profitability could be severe. You’re also probably aware of the specific danger of “phishing.” This is when a fraudster…

Now more than ever, carefully track payroll records

2020 – 10/28 The subject of payroll has been top-of-mind for business owners this year. The COVID-19 pandemic triggered economic changes that caused considerable fluctuations in the size of many companies’ workforces. Employees have been laid off, furloughed and, in some cases, rehired. There has also been crisis relief for eligible businesses in the form…

Income Tax Rates

2020 – 10/27 The IRS has issued the 2021 marginal income tax rates. The top tax rate remains 37% for single taxpayers with incomes greater than $523,600 ($628,300 for married couples filing jointly). The other rates are: 35%, for incomes over $209,425 ($418,850 for married couples filing jointly); 32% for incomes over $164,925 ($329,850 for…

Retirement Plan: 2021 Annual Inflation-Adjusted Amounts

2020 -10/27 The IRS has announced the 2021 annual inflation-adjusted amounts for retirement plans. The limit on contributions by employees who participate in 401(k), 403(b), most 457 plans and the federal Thrift Savings Plan will remain unchanged at $19,500. The catch-up contribution limit for employees aged 50 and over who participate in these plans will…

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