New rules will soon require employers to annually disclose retirement income to employees
The recently enacted SECURE Act includes a new requirement for employers that sponsor tax-favored defined contribution retirement plans that are subject to ERISA. Specifically, the law will require that benefit statements sent to plan participants include a lifetime income disclosure at least once during any 12-month period. It will need to illustrate the monthly payments that an employee would receive if the total account balance were used to provide lifetime income streams, including a single life annuity and a qualified joint and survivor annuity for the participant and his or her surviving spouse. The requirement won’t go into effect until 12 months after the DOL issues a final rule.
New W4 Form for 2020
The redesigned form takes into account that there are no longer dependency exemptions. It also makes adjustments for other income and child tax credits. It’s very simple for single taxpayers with no other income or dependents. Check the single box and you’re done. For dual income families: 1. If earnings are about equal, you can […]
How business owners and execs can stay connected with staff
The beginning of the year can be a busy time for business owners and executives. One danger of a hectic start is distancing yourself from staff. Fortunately, there are some simple ways to stay connected throughout the year. Solicit feedback through a suggestion box or email account. Be sure to hold at least one town hall meeting in which you take questions from attendees. Consider a company retreat to get even more interactive. Don’t overlook the value of social gatherings such as parties and outings. Visit different departments or facilities to stay visible. Finally, think about shadowing an employee for a day to learn about his or her job. For more ideas and info, contact us.
4 new law changes that may affect your retirement plan
If you save for retirement with an IRA or other plan, be aware there’s a new law that makes several changes to these accounts. For example, the SECURE Act repealed the maximum age for making traditional IRA contributions. Before 2020, traditional IRA contributions weren’t allowed once you reached age 70½. Starting in 2020, an individual of any age can make contributions, as long as he or she has compensation. The required minimum distribution age was also raised from 70½ to 72. In addition, penalty-free withdrawals up to $5,000 are now allowed from a retirement plan for birth or adoption expenses. These are only some of the new law changes. Questions? Don’t hesitate to contact us.
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 […]
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