Category Archives: Distribution + Light Manufacturing Group
An S Corporation Shareholder and an Officer or Employee? Avoid IRS Scrutiny with Reasonable Compensation
Work and play are pretty much the same thing, according to Mark Twain — just under different circumstances.
Work you get paid for. Or you should. And if you’re an S corporation shareholder who also works in the business (providing anything other than minimal services), the IRS will see that you do.
IRS rules require that you receive reasonable compensation for your work. Reasonable compensation in this context is wage income, not distributions or other nonwage payments. In other words, a reasonable (continue reading…)
Know How Long to Keep Those Digital or Paper Documents? Record Retention Guidelines for People, Businesses and Not-for-Profits
When it comes to saving things, there are really two kinds of people: Those who tend to save everything, forever. And those who throw it all away or delete it at the earliest possible moment — and sometimes before.
The same is often true for businesses and not-for-profit organizations. They can save too little or too much, for too long or not long enough.
So, when it comes to digital and paper records, which documents should you keep and for how long?
Although (continue reading…)
Posted in Closely Held + Family Business Practice, Distribution + Light Manufacturing Group, Emerging Businesses + Turnarounds, High Net Worth Practice, Hospitality, Restaurant + Lodging Group, Not-for-Profit Practice, Professional Practices Group, Real Estate Group, Retail Group, Tax Services, Technology Group, Uncategorized
Tagged Business Tax, Disaster Planning, Hardware/Software Systems, IRS, Operations, Personal Finances, Personal Tax
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Claiming a Small Business Health Care Tax Credit? Estimator Tool Can Help Determine If You’re Eligible and For How Much
Need help in providing your employees with health care?
You may be eligible for a federal small business health care credit through December 31, 2013.
For-profit and not-for-profit organizations must satisfy three requirements to be eligible: fewer than 25 full-time-equivalent employees, average wages of less than $50,000 and a qualifying arrangement for employee health insurance coverage.
If you’re a qualifying for-profit business, the maximum credit is 35 percent of your share of the premiums for your employees. If you’re a not-for-profit organization, you (continue reading…)
Posted in Closely Held + Family Business Practice, Distribution + Light Manufacturing Group, Emerging Businesses + Turnarounds, Hospitality, Restaurant + Lodging Group, Not-for-Profit Practice, Professional Practices Group, Real Estate Group, Retail Group, Tax Services, Technology Group
Tagged Business Tax, Compensation, IRS, Legislation, Tax Credits + Incentives
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Hiring an Intern? How to Avoid Trouble Under Federal and State Rules
It’s tempting. You could really use some inexpensive—perhaps even free—help this summer.
Given the state of the job market, you can no-doubt find an unemployed college student, recent grad or career changer that would welcome an internship for the work experience.
Seems like a fair trade.
But what can you legitimately offer interns? Are you required to pay the prevailing minimum wage, or are unpaid internships really legal? And if they are, why are employers—including the Hearst Corporation, Elite Model Management, Fox Searchlight (continue reading…)
Posted in Business Consulting Services, Closely Held + Family Business Practice, Distribution + Light Manufacturing Group, Emerging Businesses + Turnarounds, Hospitality, Restaurant + Lodging Group, Not-for-Profit Practice, Professional Practices Group, Real Estate Group, Retail Group, Technology Group
Tagged Compensation, Legislation, Operations
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Employee or Independent Contractor? The IRS Wants to Know
James has worked with a young technology company almost from its inception. Initially the company was one of many clients.
Gradually, James spent more and more time working there and less on projects for other clients. Eventually, he was on-site pretty much every day and only rarely accepted small consulting jobs he could complete evenings and weekends.
Is James still a self-employed consultant? Or, from the perspective of the IRS, has he actually become an employee of the company?
The distinction between an employee (continue reading…)
Posted in Accounting Services, Closely Held + Family Business Practice, Distribution + Light Manufacturing Group, Emerging Businesses + Turnarounds, Hospitality, Restaurant + Lodging Group, Not-for-Profit Practice, Professional Practices Group, Real Estate Group, Retail Group, Tax Services, Technology Group
Tagged Business Tax, Compensation, IRS, Operations, Startups
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Hiring a Qualified Veteran? IRS Extends Key Deadline for the Work Opportunity Tax Credit
For some time, for-profit business and not-for-profit organizations that hire qualified veterans and certain members of other targeted groups have been eligible for a federal Work Opportunity Tax Credit (WOTC).
However, the credit for veterans expired at the end of 2012 and for targeted non-veterans at the end of 2011.
The American Taxpayer Relief Act, signed into law in January of 2013, retroactively extended the WOTC through December 31, 2013 for veterans and targeted non-veterans.
Because of the retroactive nature of this extension, (continue reading…)
Posted in Closely Held + Family Business Practice, Distribution + Light Manufacturing Group, Emerging Businesses + Turnarounds, Hospitality, Restaurant + Lodging Group, Not-for-Profit Practice, Professional Practices Group, Real Estate Group, Retail Group, Tax Services, Technology Group
Tagged Business Tax, IRS, Legislation, Tax Credits + Incentives
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Alert: Updated Form I-9 Released for New Hires and Reverifications
The U.S. Citizenship and Immigration Service (USCIS) has updated Form I-9, used to verify the identity and employment authorization of persons hired in the U.S.
The new I-9 Employment Eligibility Verification form, version date 03/08/2013, can be used immediately for new hires and verifications, but must be used after May 7 when older versions are no longer accepted.
Existing I-9 forms for current employees do not have to be updated for the version change.
You can download an English and/or a Spanish version (continue reading…)
Starting a New Business Venture? What to Know About Choosing the Right Entity
Some things you just have to do right the first time, or you risk locking in problems and limiting potential.
Choosing the right entity for your new venture—whether LLC, partnership, S corporation or C corporation—is one of those things.
To raise money from venture capitalists or institutional investors, you pretty much need to be a C corporation. If you want limited liability, don’t form a general partnership. If you want to both own and be employed by your business—or compensate employees with (continue reading…)
Posted in Business Consulting Services, Closely Held + Family Business Practice, Distribution + Light Manufacturing Group, Hospitality, Restaurant + Lodging Group, Professional Practices Group, Real Estate Group, Retail Group, Tax Services, Technology Group
Tagged Business Tax, Operations, Startups, Succession + Exit Planning
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Providing Schedule K-1 Electronically? IRS Issues New Requirements Effective Now
It’s always tempting to save time and money, not to mention the planet, by reducing the use of paper documents and going electronic.
But it isn’t always simple.
If you’re thinking of going electronic with your Schedules K-1 this year—perhaps as email attachments or downloads from a portal or website—you should know about new IRS requirements for obtaining your partners’ consents and for required disclosures and processes.
The new requirements were issued by the IRS in Revenue Procedure 2012-17, effective February 13, 2012. They (continue reading…)
Posted in Closely Held + Family Business Practice, Distribution + Light Manufacturing Group, Emerging Businesses + Turnarounds, Hospitality, Restaurant + Lodging Group, Professional Practices Group, Real Estate Group, Retail Group, Tax Services
Tagged Business Tax, Hardware/Software Systems, IRS
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Hiring a Veteran? Expanded Federal Tax Credit Available for Businesses and Not-for-Profit Organizations
We can do better for our veterans.
The unemployment rate for our nation’s veterans dropped over the last year, along with the overall unemployment rate.
Yet the rate for veterans from Iran and Afghanistan remains consistently higher. And for younger veterans, the unemployment rate is well over twice the national average, at more than 20 percent.
As one part of a broader strategy to assist our returned and returning veterans, Congress passed and President Obama signed the VOW to Hire Heroes Act, which (continue reading…)
Posted in Closely Held + Family Business Practice, Distribution + Light Manufacturing Group, Emerging Businesses + Turnarounds, Hospitality, Restaurant + Lodging Group, Not-for-Profit Practice, Professional Practices Group, Real Estate Group, Retail Group, Tax Services
Tagged Business Tax, IRS, Legislation, Tax Credits + Incentives
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