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Small Business

An education plan can pay off for your employees — and your business

Education Tax Breaks, Employees, Small Business, Small Business Owners, Unincorporated Business /

Your business can set up an educational assistance plan that can give each eligible employee up to $5,250 in annual federal-income-tax-free and federal-payroll-tax-free benefits. These tax-favored plans are called Section 127 plans after the tax code section that allows them. Plan basics Sec. 127 plans can cover the cost of almost anything that constitutes education, including […]

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EBHRAs: A flexible health benefits choice for businesses

EBHRA - Excepted Benefit Health Reimbursement Arrangement, Employees, HIPAA-Health Insurance Portability and Accountability Act, HSA, Medical Expenses, Small Business, Small Business Owners, Tax Deduction /

Today’s companies have several kinds of tax-advantaged accounts or arrangements they can sponsor to help employees pay eligible medical expenses. One of them is a Health Reimbursement Arrangement (HRA). Under an HRA, your business sets up and wholly funds a plan that reimburses participants for qualified medical expenses of your choosing. (To be clear, employees can’t

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Explore SEP and SIMPLE retirement plans for your small business

Employees, Savings Incentives Match Plans for Employees (SIMPLEs), Simples, Simplified Employee Pension (SEP), Small Business, Small Business Owners, Small Business Tips /

Suppose you’re thinking about setting up a retirement plan for yourself and your employees. However, you’re concerned about the financial commitment and administrative burdens involved. There are a couple of options to consider. Let’s take a look at a Simplified Employee Pension (SEP) and a Savings Incentive Match Plan for Employees (SIMPLE). SEPs offer easy

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Businesses considering incorporation should beware of the reasonable compensation conundrum

C Corporation, Compensation, Dividend Distribution, Highly Compensated Employees, Reasonble Compensation Conundrum, S Corporation, Small Business, Small Business Tips /

Small to midsize businesses have valid reasons for incorporating, not the least of which is putting that cool “Inc.” at the end of their names. Other reasons include separating owners’ personal assets from their business liabilities and offering stock options as an employee incentive. If you’re considering incorporation for your company, however, it’s essential to

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Small business alert: Watch out for the 100% penalty

Federal Taxes, Small Business, Small Business Owners, Trust Fund Recovery Penalty /

Some tax sins are much worse than others. An example is failing to pay over federal income and employment taxes that have been withheld from employees’ paychecks. In this situation, the IRS can assess the trust fund recovery penalty, also called the 100% penalty, against any responsible person. It’s called the 100% penalty because the entire

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Is your business on top of its tech stack?

Information Technology (IT), IT Audits, Small Business, Small Business Owners, Software /

Like many business owners, you’ve probably received a lot of technology advice. One term you may hear frequently is “tech stack.” Information technology (IT) folks love to throw this one around while sharing their bits and bytes of digital wisdom. Well, they’re not wrong about its importance. Your tech stack is crucial to maintaining smooth

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6 essential tips for small business payroll tax compliance

Federal Income Tax, Federal Unemployment (FUTA Tax, FICA, Payroll Tax, Small Business, Small Business Owners /

Staying compliant with payroll tax laws is crucial for small businesses. Mistakes can lead to fines, strained employee relationships and even legal consequences. Below are six quick tips to help you stay on track. 1. Maintain organized records Accurate recordkeeping is the backbone of payroll tax compliance. Track the hours worked, wages paid and all

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Planning for the future: 5 business succession options and their tax implications

Captial Gains, Closely Held Corporations, Employees, ESOP Employee Stock Ownership Plan, Estate Planning, Estate Tax, Federal Estate Tax, Federal Gift Tax, Federal Taxes, Gift and Estate Tax, Small Business, Small Business Owners, Succession Plans, Taxes and Tips, Trust /

When it’s time to consider your business’s future, succession planning can protect your legacy and successfully set up the next generation of leaders or owners. Whether you’re ready to retire, you wish to step back your involvement or you want a solid contingency plan should you unexpectedly be unable to run the business, exploring different

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How to evaluate and undertake a business transformation

Business Transformation, Financial Oversight, Small Business, Small Business Owners, SWOT Analysis (Strengths /

Many industries have undergone monumental changes over the last decade or so. Broadly, there are two ways to adapt to the associated challenges: slowly or quickly. Although there’s much to be said about small, measured responses to economic change, some companies might want to undertake a more urgent, large-scale revision of their operations. This is

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