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Douglas Freeman

Employers: The Social Security wage base is increasing in 2022

Employees, FICA, Medicare Taxes, Payroll Tax, Self Employment Tax, Small Business, Social Security & Medicare (FICA) taxes, Social Security Administration, Social Security Disability Insurance (SSDI) /

The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $147,000 for 2022 (up from $142,800 for 2021). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Background information. The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees, and self-employed […]

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Engaging in customer-focused strategic planning

Marketing, Profitability, Strategic Business Planning /

When creating or updating your strategic plan, you might be tempted to focus on innovative products or services, new geographic locations, or technological upgrades. But, what about your customers? Particularly if you’re a small to midsize business, focusing your strategic planning efforts on them may be the most direct route to a better bottom line.

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Get your piece of the depreciation pie now with a cost segregation study

Cost Segregation Study, Deductions, Depreciation, Small Business /

If your business is depreciating over a 30-year period the entire cost of constructing the building that houses your operation, you should consider a cost segregation study. It might allow you to accelerate depreciation deductions on certain items, thereby reducing taxes and boosting cash flow. And under current law, the potential benefits of a cost

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You may owe “nanny tax” even if you don’t have a nanny

Employees, Federal Income Tax, Federal Unemployment (FUTA Tax, FICA, Nanny Tax, Social Security & Medicare (FICA) taxes, Sole Proprietors, State Tax, Summer Employees /

Have you heard of the “nanny tax?” Even if you don’t employ a nanny, it may apply to you. Hiring a house cleaner, gardener or other household employees (who isn’t an independent contractor) may make you liable for federal income and other taxes. You may also have state tax obligations. If you employ a household

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4 ways to refine your cash flow forecasting

Accounting, Budgeting, Cash Flow, Inventory Management, Small Business /

Run a business for any length of time and the importance of cash flow becomes abundantly clear. When payroll is due, bills are piling up and funds aren’t available, blood pressure tends to rise. For this reason, being able to accurately forecast cash flow is critical. Here are four ways to refine your approach. 1.

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Vacation home: How is your tax bill affected if you rent it out?

Depreciation, Income Tax, Property Tax, Rental Expenses, Rental Property, Tax, Tax Deduction, Tax Planning, Tax Savings, Vacation Rental /

If you’re fortunate enough to own a vacation home, you may want to rent it out for part of the year. What are the tax consequences? The tax treatment can be complex. It depends on how many days it’s rented and your level of personal use. Personal use includes vacation use by you, your relatives

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New per diem business travel rates became effective on October 1

Business Travel Deductions, Business Travel Expense, Employees, Small Business, Tax Record Retention /

Are employees at your business traveling again after months of virtual meetings? In Notice 2021-52, the IRS announced the fiscal 2022 “per diem” rates that became effective October 1, 2021. Taxpayers can use these rates to substantiate the amount of expenses for lodging, meals, and incidental expenses when traveling away from home. (Taxpayers in the

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Remind your sales team about the power of storytelling

Financial Oversight, Sales, Tax Planning /

Everyone loves a story. It’s why movies are still big business and many of us spend hours on the couch binge-watching our favorite television shows. What’s important to keep in mind — and to remind your sales team — is that effective storytelling can also drive sales. This doesn’t mean devising fanciful, fictional tales to

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Navigating the tax landscape when donating works of art to charity

Charitable, Contributions, Deductions, Donations, Tax Deduction /

If you own a valuable piece of art or other property, you may wonder how much of a tax deduction you could get by donating it to charity. The answer to that question can be complex because several different tax rules may come into play with such contributions. A charitable contribution of a work of

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The tax score of winning

Deductions, Estate Planning, Federal Income Tax, Gambling Taxation, Income Tax, Individual Income Tax, Itemized Deduction, Tax /

Studies have found that more people are engaging in online gambling and sports betting since the pandemic began. And there are still more traditional ways to gamble and play the lottery. If you’re lucky enough to win, be aware that tax consequences go along with your good fortune. Review the tax rules. Whether you win

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