Cures Act Approves HRAs for Small Employers A new law goes into effect on New Year's Day that will allow small employers to set aside money in standalone Health Reimbursement Arrangements (HRAs) without incurring penalties under the Affordable Care Act. Here, we explain how the tax-advantaged accounts work, which employers are eligible to use standalone HRAs without incurring penalties and how to provide notice to employees about the arrangements.
A Tax-Smart Strategy: Hire Your Spouse In the world of taxes, a "Section 105 Plan" can be a win-win situation. If you're married and run a family business, your spouse may do a great deal of work for the company whether or not he or she is on the payroll. Here's a way that you can compensate your spouse, help pay your family's medical expenses and reduce your taxes at the same time ... provided you get the details right.
Beware of a 100% Personal Liability Penalty A harsh and expensive tax penalty can be personally imposed on any person responsible for collecting, accounting for, or turning over taxes to the federal government that were withheld from employees' paychecks. There's often more than one person in a firm who can be hit with the Trust Fund Recovery Penalty, which is also called the 100% Penalty. This article shows you how it works.
Rx for Itemizing Medical Expenses Congress increased the threshold for deducting medical expenses on your personal tax return. But a lower threshold still applies to some taxpayers until 2017. Here are more details on these itemized expenses, including a checklist of medical, dental and vision care items to consider when compiling your annual expenses for tax purposes.
Spotlight On Business Tax Trends What's the most popular choice of entity: sole proprietorship, C corporation, S corporation, partnership or limited liability company? A recent report by the Joint Committee on Taxation answers this question — and highlights trends in how businesses have been structured over the last 35 years. With the recent election and proposed tax reforms in the works for 2017, however, it's possible that these trends could reverse or slow down in the future.
Debt or Equity? New Guidance Helps You Decide Is a payment from a shareholder to a corporation considered bona fide debt or a capital contribution? Here are two recent developments on this issue — a U.S. Tax Court decision and long-awaited IRS regulations — as well as eight factors to consider when distinguishing debt from equity.
Insuring Your Kids in College A couple of generations ago, kids showed up to college with a few changes of clothes and maybe a hi-fi stereo set. Computers were something you went to the lab to use, if you used a computer at all — and property insurance just wasn't something we thought about. These days, college students may arrive at college with a major investment in electronics, sports equipment and more. Before you send your kids off to school, find out what kind of insurance coverage they need.
Executive Compensation: How Much is too Much? Many organizations are rethinking executive salary and perks. While public companies are bound by SEC disclosure rules, even private companies and not-for-profits are re-evaluating their executive compensation packages. Click "Full Article" to learn more about trends in executive compensation, including severance and fringe benefit packages, as well as the tax implications.
Using Dual Monitors Saves Paper and Time No matter what industry your company is in, there are ways to go green -- in terms of eliminating waste -- that are healthy for the bottom line. Not to mention, many customers feel better about dealing with companies that are good citizens and good stewards of resources. Find out how using dual monitors on your computers can be a win/win for your business and a boost to your bottom line.