4Thought Blog

4thought graphic - blog 2020

The New Guidance on the Changed Employee Retention Credit Rules

Posted by Concannon Miller on Thu, Jan 20, 2022

Sometimes, Uncle Sam seems to give with one hand and take with the other. Take the employee retention credit (ERC), for example.

Congress created this tax break in 2020 to help businesses continue to pay their workers following the onset of the COVID-19 pandemic. Then legislators extended the credit, with enhancements, through 2021. However, the new infrastructure act repeals the ERC for the final quarter of 2021.

Fortunately, the IRS has released new guidance to help employers make sense of the repeal. Specifically, Notice 2021-65 explains how the retroactive tax law change applies to employers that have based their deposits on the old law.

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Topics: Business tax planning, COVID-19

Federal Government Warns of Tax Return, Refund Delays for 2022

Posted by Concannon Miller on Tue, Jan 18, 2022

U.S. Treasury officials last week warned of expected significant delays in processing tax returns and refunds for the 2022 season.

The IRS is still dealing with backups in processing returns from the past two filing seasons and the continuing pandemic is causing staff shortages, officials said. Normally at the start of tax season the IRS has about 1 million items in its backlog but the current backlog totals more than 6 million items, officials said.

The IRS is urging taxpayers to file electronically and request direct deposit – instead of a mailed check – for quicker turnaround.

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Topics: Business tax planning, Individual tax planning

Your Next McDonald’s Ratio: Estimated Net Equity Percentage

Posted by Ron Cressman on Thu, Jan 13, 2022

Financial health is critically important to your success as a McDonald’s Owner/Operator. To help you measure your financial health, we’re doing a series of articles on the McDonald’s financial standard ratios, what they entail and how to improve them.

If you missed them, check our prior articles Understanding and Managing Financial Ratios for McDonald’s Franchisees and An Important Metric for Franchisees: Trailing Twelve-Month Liability Turnover.

The next financial viability measure we’ll discuss is the estimated net equity percentage. It represents the estimated percentage you own of your business. It’s the hypothetical amount of money that would be remaining after your business is liquidated before paying income taxes.

McDonald’s minimum net equity percentage to be eligible for growth and rewrite is 25%. The estimated net equity is calculated by reducing the estimated restaurant value by the business's net debt. Dividing the estimated net equity by the estimated restaurant value will provide the estimated net equity percentage.

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Topics: McDonald's management

Manufacturers: Best Practices to Avoid Sales and Use Tax Problems

Posted by Concannon Miller on Tue, Jan 11, 2022

The pandemic and global supply chain disruption have placed an unprecedented burden on manufacturers — and the need for automating manual processes is more pronounced than ever.

One way manufacturing companies can lower costs with technology is to upgrade controls for sales and use taxes. Let's take a look.

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Topics: Manufacturing

Bookkeeping Tips for Construction: 8 Strategies to Consider

Posted by Concannon Miller on Thu, Jan 6, 2022

As you're no doubt aware, bookkeeping for builders is challenging. Construction companies tend to have unstable workforces, wage rates that can change by location, and multiple ongoing projects with various costs and durations.

Here are some bookkeeping tips that can help you stay organized and set up your business for success in the coming year.

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Topics: Construction & Real Estate Development

Four Retirement Plans for Nonprofits: The Pros & Cons

Posted by Concannon Miller on Tue, Jan 4, 2022

Traditionally, 403(b) plans have been the qualified retirement plan of choice for nonprofits. These plans were established for the exclusive benefit of tax-exempt organizations.

However, nonprofits now have other options as well. Even if you continue to prefer a 403(b) plan, as many nonprofits still do, it pays to review and weigh the benefits of other types of accounts.

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Topics: Nonprofit Organizations

The Top 8 Resolutions for Business Owners for 2022

Posted by Concannon Miller on Thu, Dec 30, 2021

Have you compiled a list of New Year's resolutions for your small business in 2022?

Resolutions don't have to be limited to your personal life. Consider how you can improve in the upcoming year in your role as a small business owner.

Of course, everyone's list will be different. But here are eight common aspirations that usually make good business sense.

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Topics: Business consulting

The Top 7 Personal Financial Resolutions for 2022

Posted by Concannon Miller on Tue, Dec 28, 2021

It's almost time to ring in the New Year — and many people are looking forward to putting 2021 in the rearview mirror.

While New Year's resolutions often focus on eating less and exercising more, you should also give some thought to your financial fitness.

Here are seven ways to introduce more discipline and vigor into your financial regime.

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Topics: Individual tax planning

Minimum Wage Increases: The New Rates to Know for 2022

Posted by Concannon Miller on Tue, Dec 21, 2021

In today's tight labor market, many employers have been raising wages substantially to maintain operations. That's most evident in the leisure and hospitality sector, where average hourly wages rose 12% for the year ending October 2021.

For many organizations, getting by with paying minimum wage is generally a distant memory. That's particularly true where the state's minimum wage is the same rate — $7.25 — as the federal rate that's been in place since 2009.

In other states with minimums as high as double the federal rate, it can be a different story. Even a small minimum wage increase can have significant financial consequences for a business or nonprofit organization.

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Topics: Business consulting

An Important Metric for Franchisees: Trailing Twelve-Month Liability Turnover

Posted by Ron Cressman on Thu, Dec 16, 2021

Financial health is critically important to your success as a McDonald’s Owner/Operator. To help you measure your financial health, we’re doing a series of articles on the McDonald’s financial standard ratios, what they entail and how to improve them.

If you missed it, check our introductory article Understanding and Managing Financial Ratios for McDonald’s Franchisees.

In today’s article, we’re going to address the Trailing Twelve-Month Liability Turnover. This ratio represents the number of days of next month’s sales needed to cover any working capital deficit.  

But before we get into the calculation of the ratio, let’s address the concept of working capital.

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Topics: McDonald's management

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