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Overtime, Minimum Wage and Other Payroll Changes for 2020

Posted by Concannon Miller on Tue, Jan 28, 2020

Along with a new year comes new payroll rules. Here are five highlights:

Significant Revisions have been Made to Form W-4

The IRS redesigned Form W-4, beginning with the 2020 tax year. The form was revised to take into account changes from the Tax Cuts and Jobs Act. That law suspended personal exemptions and substantially increased the standard deduction.

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Topics: Business consulting

The Employer Impact of the SECURE Act on 401(k)/Retirement Plans

Posted by Concannon Miller on Thu, Jan 16, 2020

The Setting Every Community Up for Retirement Enhancement (SECURE) Act was mainly intended to help individuals save more for retirement.

But the new law also contains provisions that help simplify the administration of retirement plans for employers and allow more employees to participate in 401(k) plans. Here are some provisions that may affect business owners.

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Topics: Business consulting

Pay Overtime? The New Pay Rates to Know

Posted by Concannon Miller on Tue, Jan 7, 2020

What is the "regular rate of pay" for a nonexempt employee? The answer is needed when calculating hourly overtime wages, which must exceed base wages by 50%.

New regulations from the U.S. Department of Labor (DOL) that take effect January 15 update the definition of "regular rate of pay" to guide your overtime pay calculations.

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Topics: Business consulting

New Lease Accounting Rules Delayed for Private Businesses

Posted by Denise Hozza on Thu, Nov 7, 2019

There’s some welcome news for businesses that use GAAP (Generally Accepted Accounting Principles) for their financial statements. There is now a year delay on implementing fairly cumbersome new lease accounting standards.

The Financial Accounting Standards Board (FASB) voted last month to delay ASC 842 Leases, a standard requiring the capitalization and debt of virtually all leases on the balance sheet. The new standard was supposed to take affect for private businesses and other non-public entities for fiscal years starting after Dec. 15, 2019. Now the new standard will take affect for fiscal years starting after Dec. 15, 2020.

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Topics: Business consulting

The New Overtime Rules Employers Must Know

Posted by Concannon Miller on Tue, Oct 1, 2019

The U.S. Department of Labor has issued the long-anticipated final version of its overtime eligibility rules. The changes will take effect on January 1, 2020.

As a result, the DOL estimates that 1.3 million workers will be newly eligible for overtime pay. Are any of them on your payroll? Read on to find out.

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Topics: Business consulting

Individual Coverage HRAs: Expanded Health Insurance Options for Employers

Posted by Concannon Miller on Thu, Aug 8, 2019

First the old news: Under the Affordable Care Act (ACA), employers with at least 50 employees (or full-time equivalents) are required to provide health benefits and pay for a good portion of the cost.

And many smaller employers that aren't required to offer health coverage do so anyway. Why? They may do it to compete successfully for talented employees in today's low unemployment environment or out of genuine concern for the well-being of their workers. What few employers like, however, is being in the time-consuming and complex business of selecting and administering health plans.

And here's the new news: That employer sentiment is why many may be tempted by a radical liberalization of regulations governing health reimbursement arrangements (HRAs), which kicks in next year. Chances are many employers will need some time to digest the 500-plus pages of new HRA rules, so they won't make any big changes immediately. But it's a good idea to be prepared for changes in buying individual health coverage.

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Topics: Business tax planning, Business consulting

The New Rules for Independent Contractors: What Business Owners Should Know

Posted by Concannon Miller on Tue, Jul 23, 2019

The so-called "gig economy" challenges conventional practices between companies and the people who perform the work. A key question is: Are these workers independent contractors or employees?

The U.S. Department of Labor recently published a new wage and hour opinion letter, spelling out its position with respect to a specific virtual marketplace company. Though the letter is directly applicable only to the specific employer that sought the opinion, it still offers insight on how the DOL might rule in similar cases.

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Topics: Business consulting

Retail Survival Tips: Be Digitally Savvy, Customer-Centric

Posted by Concannon Miller on Tue, Jun 11, 2019

It’s been a rough few years for many brick-and-mortar retailers, with several high-profile bankruptcies altering the face of local malls with thousands of store closures. Despite strong underlying economic fundamentals and high consumer confidence, many large malls have faced significant headwinds. Retailers in outdated malls, or those that have lost anchor stores, have been hardest hit.

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Topics: Business consulting

Tips on Reducing Social Security and Medicare Taxes for Small Business Owners

Posted by Concannon Miller on Thu, May 30, 2019

If your small business is unincorporated, you may be fed up with paying the federal self-employment tax. This tax is how the federal government collects Social Security and Medicare taxes from self-employed individuals. However, you may be able to lower your exposure to these taxes if you structure your business as a subchapter S corporation for federal tax purposes. Here are the details on how this tax-saving strategy can work.

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Topics: Business tax planning, Business consulting

Understanding Financial Statements: How Privately-Held Business Owners Can Benefit

Posted by Andrea Brady on Thu, May 16, 2019

Many privately-held business owners think putting together financial statements is busywork.  You have a business to run, so can’t your accountant just whip up what you need and send it off wherever it needs to go?  In theory, yes they could do that. 

But the most forward looking business owners understand that doing the numbers isn’t just perfunctory.  Your financial statements tell very specific stories about your business.  Gold has value because of its beauty and rarity.  Your business has value because of its profitability, cash flow and potential for future wealth. 

The value of your company is communicated through its financial statements.  And reading financials can be very frustrating if you don’t know what you’re looking at.

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Topics: Business consulting

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