WHY YOU SHOULD NOT ABBREVIATE 2020 WHEN SIGNING LEGAL DOCUMENTS
We’ve now entered the year 2020—but don’t abbreviate 2020 when signing your legal documents. Police have warned that anyone signing important documents or checks with an abbreviation of 2020, i.e. “20,” could put themselves at risk of fraud. They recommend writing out the date in full, as 2020, on legal documents and checks. Why not […]
New law provides a variety of tax breaks to businesses and employers
While you were celebrating the holidays, you may have missed a law that passed with a grab bag of provisions providing tax relief to businesses and employers. It makes many changes to the tax code, including an extension (generally through 2020) of provisions that were set to expire or already expired. For example, the law extended the employer tax credit for paid family and medical leave through 2020, as well as the Work Opportunity Tax Credit for hiring individuals who are members of targeted groups. It also repealed the “Cadillac tax” on high-cost employer-sponsored health coverage. These are only a few provisions of the new law. If you have questions, don’t hesitate to contact us.
Your home office expenses may be tax deductible
Technology has made it easier to work from home. However, just because you have a home office doesn’t mean you can deduct expenses associated with it on your tax return. In order to be deductible, you must be self-employed and the space must be used regularly and exclusively for business purposes. If you qualify, there are two options for a deduction. You can deduct a portion of your mortgage interest, property taxes, insurance, utilities and certain other expenses, as well as the depreciation allocable to the office space. This requires calculating and substantiating actual expenses. Alternatively, you can take a “safe harbor” deduction. Other rules and limits apply. Contact us for details.
Cost management: A budget’s best friend
If your company comes up over budget year after year, you may want to consider cost management. This is a formalized, systematic review of operations and resources with the stated goal of reducing costs at every level and controlling them going forward. As part of this effort, you’ll answer questions such as: Are we operating […]
New law helps businesses make their employees’ retirement secure
The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was recently signed into law as part of a larger spending bill. There are several provisions of interest to small businesses that have a retirement plan for employees or are thinking of adding one. For example, unrelated employers will be able to join together to create a retirement plan. Beginning in 2021, new rules will make it easier to create and maintain a multiple employer plan. In addition, there’s an increased tax credit for small employer retirement plan startup costs. And there’s a new small employer automatic plan enrollment credit. These are only some of the provisions in the law. Contact us to learn more.
The SECURE Act: What you should know now
As expected, President Donald Trump is preparing to sign in to law the Setting Every Community Up for Retirement Enhancement or SECURE Act in the next few days. The Act was part of a major spending package approved by the Senate on Thursday and will usher in major changes to the way most Americans plan […]
Congress gives a holiday gift in the form of favorable tax provisions
As part of a year-end budget bill, Congress just passed a package of tax provisions that will provide savings for some taxpayers. It contains a variety of tax breaks. For example, the age limit for IRA contributions is being raised from age 70½ to 72. The age to take required minimum distributions (RMDs) is also going up from 70½ to 72. Most of the tax “extenders” have been reinstated through 2020. In addition, there is a package of retirement-related provisions, including new rules that allow some part-time employees to participate in 401(k) plans. These are only some of the provisions in the new law. Contact us with any questions.
Wayfair revisited — It’s time to review your sales tax obligations
In a 2018 decision, the U.S. Supreme Court expanded the power of states to collect sales tax from remote sellers. Today, nearly every state with a sales tax has enacted a similar law. So if your company does business across state lines, it’s a good idea to reexamine your sales tax obligations. If you make online, telephone or mail-order sales in states where you lack a physical presence, it’s critical to find out whether those states have economic nexus laws and determine whether your activities are enough to trigger them. If you have nexus with a state, you must register and collect state and applicable local taxes on your taxable sales there. If you need assistance, contact us.
5 ways to strengthen your business for the new year
The end of one year and the beginning of the next is a great opportunity for reflection and planning. Now’s a good time to think about ways to strengthen your business for the new year. Here are five ideas: 1) Compare your 2019 financial performance to budget and determine what went right or wrong. 2) Create a multiyear capital budget to anticipate expensive purchases. 3) Assess the competition to identify major players and how you should respond. 4) Review your insurance coverage to ensure you’re adequately protected. 5) Analyze market trends to evaluate where things stand and where they’re headed. Contact us for help implementing savvy moves to make 2020 a strong year for your company.
Stretch your marketing dollars further with smart strategies
If your marketing budget is limited, there may be ways to stretch that money further. For example, you could engage in some competitive intelligence and research the marketing campaigns of larger companies. Sometimes their big-budget approaches can be distilled down to lower-cost alternatives. You might also get hyperlocal and engage more actively with your community, such as displaying signage on vehicles or contributing to a locally-focused social media page. Last, look carefully into guerilla marketing: putting your company’s brand in the public eye in an unconventional way. Examples include (legal) graffiti art and viral videos. Contact us for help assessing costs and feasibility.
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