The passage of the Tax Cuts and Jobs Act (TCJA) in late 2017 brought significant changes to the tax landscape. As the first tax season under the law looms on the horizon, new year-end tax planning strategies are emerging. Meanwhile, some of the old tried-and-true strategies have changed and others remain viable.
Growing your business is the primary focus of every entrepreneur. Whether growth occurs by way of increasing sales and cash flows at existing business divisions or via acquisition and expansion, the challenges faced are often strikingly similar.
That being said, let’s examine for a moment the prospects and hurdles one will often face when buying a new restaurant, through the lens of a turnaround CFO.
Employers must comply with a variety of laws involving the minimum wage and overtime. As you may know, the overtime rules were going to change dramatically last year before a federal court stepped in to delay the changes. Now, the Trump administration is signaling that it may revise the current rules and is seeking feedback from the public.
Does your small business engage in qualified research activities? If so, you may be eligible for a research tax credit that can now be used to offset your federal payroll tax bill.
This relatively new privilege allows research credits to benefit small businesses that may not generate enough taxable income to use the credits to offset their federal income tax bills. The IRS recently issued guidance that explains how to take advantage of this election. Here are the details.
Small businesses are the lifeblood of the U.S. economy.
That’s recognized nationally through National Small Business Week and locally through the Pennsylvania Small Business Week.
Both weeks run April 30 through May 6, and both the federal and state governments are holding multiple free webinars providing small businesses with tax, financing, marketing and other guidance.
The start of a new year is the prime time for resolutions, including financial resolutions.
If you’re a business owner or finance officer, those resolutions should include reconciliation of your bank and financial statements. Closing out your 2016 bank statements and starting with a fresh accurate bank statement in 2017 is one step in ensuring you have solid cash management practices in place.
Here's a great tax-saving idea for those who have teenagers who can work part-time in the family business – hire the kids as legitimate employees. This strategy works best if your business operates as:
- A husband-wife partnership (owned only by you and your spouse).
- A husband-wife Limited Liability Company (LLC), which is treated as a husband-wife partnership for federal tax purposes.
- A sole proprietorship.
- A single-member LLC, which is treated as a sole proprietorship for federal tax purposes.
The deadline for the Department of Labor's new final overtime rule is Dec. 1, 2016. While CFOs at most large U.S. companies have been working overtime themselves to prepare for the changes, many small and midsize firms haven't been as quick to react.
Current Overtime Rule
The Fair Labor Standards Act (FLSA) is the federal law that controls overtime pay. It requires employers to pay employees 1.5 times their regular pay rate for overtime above 40 hours a week, unless specifically exempted. The FLSA "white collar" exemptions exclude from the federal overtime rules certain executive, administrative and professional (EAP) employees and outside salespeople.
Beginning Sept. 23, 2016, the electronic payment association NACHA has adopted a new rule to allow same-day processing of ACH – or automated clearing house – payments.
Currently most ACH payments settle on the next business day. This new rule includes a “Same Day Fee” on each same day transaction that many ACH originators may not be aware of.
If you process your own payroll via ACH or if you use a payroll processor that pays via ACH, you need to be aware of these changes. It is now critical to be aware of the EED (Effective Entry Date) and ensure it accurately reflects the type of transaction.
If you are a small business owner, there is a tax credit that can put money in your pocket.
The Small Business Health Care Tax Credit benefits employers that:
- have fewer than 25 full-time equivalent employees
- pay an average wage of less than $50,000 a year
- pay at least half of employee health insurance premiums