Commission fraud: When salespeople get paid more than they’ve earned
Many employees receive part of their compensation from sales-related commissions. Unfortunately, some of these workers occasionally may be tempted to abuse the commission system by falsifying sales or rates. Generally, this takes one of three forms: 1) invented sales, 2) overstated sales and 3) manipulated commission rates. This last scheme often involves the collusion of accounting employees, which makes segregating duties essential. Companies also should analyze commission and sales data for outliers, monitor employee emails and set realistic and achievable sales goals. Contact us for help.
Review your strategic plan … and look ahead
The end of one year and the beginning of another is an optimal time for business owners to look back on the preceding 12 calendar months and ask a deceptively simple question: How’d we do? Even if your strategic plan isn’t a detailed document replete with spreadsheets and pie charts, you can still review actual performance against it by assessing three areas: 1) HR, specifically, how has “the Great Resignation” affected your turnover rate? 2) Sales and marketing, for example, did you meet monthly sales goals and get good ROI on marketing efforts? 3) Production, for instance, is product quality slipping or customer satisfaction dropping? Contact us for help with strategic planning.
Gig workers should understand their tax obligations
The number of people engaged in the “gig” or sharing economy keeps growing. In an Aug. 2021 survey, the Pew Research Center found that 16% of Americans have earned money at some time through online gig platforms. Generally, if you receive income from being a rideshare driver, delivering food or providing other services, it’s taxable. That’s true even if the income comes from a side job and you don’t receive a 1099-NEC or other form reporting the money you made. You may need to make quarterly estimated tax payments because the income isn’t subject to withholding. Your business expenses may be deductible on your tax return, subject to the normal tax limits and rules. Contact us to learn more.
Will the standard business mileage rate go up in 2022? Yes!
The optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up in 2022 by 2.5 cents per mile. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup or panel truck will be 58.5 cents. The increased tax deduction partly reflects the price of gas. On Dec. 21, the national average price of a gallon of regular gas was $3.29, compared with $2.22 a year earlier, according to AAA Gas Prices. This mileage rate is useful if you don’t want to keep track of actual vehicle-related expenses. But you still must record certain information, such as the mileage, date and destination for each trip.
The fundamentals of a solid salesperson
As your business heads into 2022, think about whether your sales staff is up to the challenge of meeting the strategic objectives you have set. Does each member have the fundamentals of a solid salesperson? For starters, look at whether someone is a natural or needs additional or specialized training. A sales aptitude test can help. Identify the most valuable sales tactics of your top sellers and share those approaches with the rest of the staff through ongoing training. Finally, sales is a results-oriented profession. Assess your staffers’ respective success using carefully chosen metrics. We can help you set sales goals and accurately measure progress throughout the year.
There’s a deduction for student loan interest … but do you qualify for it?
If you’re paying back college loans for yourself or your children, you may wonder if you can deduct the interest you pay on the loans. The answer is yes, subject to certain limits. The maximum amount of student loan interest you can deduct each year is $2,500. Unfortunately, the deduction is phased out if your […]
2022 Q1 tax calendar: Key deadlines for businesses and other employers
Here are a few key tax-related deadlines for businesses during Q1 of 2022. JAN. 17: Pay the final installment of 2021 estimated tax. JAN. 31: File 2021 Forms W-2 with the Social Security Administration and provide copies to employees. Also provide copies of 2021 Forms 1099-MISC to recipients and, if reporting nonemployee compensation in Box 7, file, too. FEB. 28: File 2021 Forms 1099-MISC if not required earlier and paper filing. MARCH 15: If a calendar-year partnership or S corp., file or extend your 2021 tax return. Contact us to learn more about filing requirements and ensure you’re meeting all applicable deadlines.
Providing a company car? Here’s how taxes are handled
The use of a company car is a valuable fringe benefit for business owners and key employees. This perk results in tax deductions for the employer and tax breaks for the owners and employees using the cars. (And of course, they get the nontax benefit of getting a company car.) For tax deduction purposes, a business will treat the car much the same way it would any other business asset. Providing an auto for an owner or key employee comes with complications and paperwork. Personal use will have to be tracked and valued under the fringe benefit tax rules and treated as income. We can help you stay in compliance with the rules and explain more about this prized perk.
Stock market investors: Year-end tax strategies to consider
Year-end is a good time to plan to save taxes by structuring your capital gains and losses. Consider some possibilities. For example, suppose you lost money this year on some stock and have other stock that has appreciated. Consider selling appreciated assets before Dec. 31 (if you think the value has peaked) and offset gains with losses. Long-term capital losses offset long-term capital gains before they offset short-term gains. Similarly, short-term capital losses offset short-term capital gains before they offset long-term gains. You may generally use up to $3,000 of capital losses in excess of total capital gains as a deduction against ordinary income in computing adjusted gross income.
Helping your employees make the most of email
For many people, email has become an afterthought. This can cause problems for businesses in lost productivity, lower morale and even unhappy customers. Here are some email management tips to address with staff: 1) Set up project-specific folders to stay better organized. 2) Regularly check junk email folders and adjust the filters so legitimate messages aren’t missed. 3) Encourage employees to unsubscribe from e-newsletters and other messages they’re no longer reading. 4) Refine distribution lists to better target recipients; delete obsolete lists. 5) Establish specified times during the workday to check email. 6) Consider company policies for how quickly employees should respond to emails.
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