Category Archives: Retail 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…)
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…)
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…)
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…)
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…)
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…)
Selling to Out-of-State Buyers? What You Need to Know about Washington’s Nonresident Sales Tax Exemption
Sometimes a little knowledge is a good thing. Then there are those times it can get you into trouble.
For many retailers, Washington State’s nonresident sales tax exemption is a prime example. It may seem simple: You don’t collect retail sales tax if the buyer isn’t a Washington resident.
Unfortunately, the rules are more restrictive than that and there are many exceptions.
It’s important that sellers understand and properly apply the rules. If they provide retail sales tax exemptions to ineligible buyers, they are (continue reading…)
Uncertainty ends, at least when it comes to federal taxes. And it was a real cliff-hanger, if you’ll pardon the pun.
As of December 31, 2012, U.S. taxpayers faced significant increases in federal income, estate and gift taxes for 2013 as a result of Congressional inaction.
Then, on January 1, 2013, Congress passed the American Taxpayer Relief Act of 2012 (the Act) which President Obama signed into law on January 2.
The Act reduces income tax rates for the majority of Americans, as (continue reading…)
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…)