Present yet unaccounted for: The problem of presenteeism
Absenteeism has long troubled many companies. But there’s a flip side to employees failing to show up to work: “presenteeism.” This is when someone comes in unwell or puts in excessive overtime. Although paid sick days may help with physical ailments, employees may hesitate to take a day off for stress or mental health reasons. Explicitly tell them it’s okay to do so and remind employees of supportive services offered through your health plan. Also, discourage the idea that employees must work excessive overtime to prove themselves. Contact us for more info.
Deducting business meal expenses under today’s tax rules
You probably spend a bundle “wining and dining” customers, vendors and employees. Under current tax law, entertainment expenses are no longer deductible. But you can still deduct 50% of the cost of business-related food and beverages, if you meet certain requirements. What if you buy food and beverages at an entertainment event? You can still deduct 50% of the expenses incurred at entertainment events, but only if business was conducted during the event or shortly before or after. And keep receipts that separately state the meal costs. Contact us with questions.
Responding to the nightmare of a data breach
A data breach is every business owner’s nightmare. Without an emergency response plan to handle such a crisis, you’re vulnerable to not only the damage of the attack itself, but also the fallout from your own panicked decisions. These plans generally follow five steps: 1) Call your attorney, 2) engage a digital forensics investigator, 3) fortify your IT systems to prevent further damage, 4) communicate strategically to preserve your reputation and reassure stakeholders, and 5) use credit and IT monitoring services to keep an eye out. Contact us for more info.
Seniors: Medicare premiums could lower your tax bill
Medicare premiums and supplemental insurance can be more expensive than seniors expect. However, some taxpayers may be able to lower their tax bills by deducting Medicare premiums and other qualifying medical expenses. However, it can be difficult to qualify to claim medical expenses on your tax return. For 2019, you can deduct medical expenses only if you itemize deductions and only to the extent that total qualifying expenses exceeded 10% of adjusted gross income. Contact us if you have questions about writing off medical expenses, including Medicare premiums.
Divorcing business owners need to pay attention to tax implications
If you’re getting a divorce, you know it’s a highly stressful time. But if you’re a business owner, tax issues can complicate matters more. For example, you can generally divide most assets, including business ownership interests, between you and your soon-to-be ex-spouse without any federal income or gift tax consequences. When an asset falls under the tax-free transfer rule, the spouse who receives the asset takes over its existing tax basis and existing holding period. Contact us. We can help minimize the adverse tax consequences of settling your divorce.
Make a deductible IRA contribution for 2018. It’s not too late!
You still have time to make your 2018 traditional and Roth IRA contributions. The deadline for most taxpayers is April 15, 2019. If you qualify, deductible contributions to traditional IRAs can lower your 2018 tax bill. Even nondeductible contributions can be beneficial because of tax-deferred growth. The 2018 contribution limit is $5,500 (plus $1,000 for those age 50 or older on Dec. 31, 2018). However, your deduction or contribution may be reduced or eliminated based on your income. Contact us to learn more about retirement saving in your situation.
Understanding how taxes factor into an M&A transaction
If your company is merging with or acquiring another business, it’s important to understand how the transaction will be taxed. For tax purposes, a transaction can basically be structured in two ways: stock (or ownership interest) or assets. For tax and nontax reasons, buyers usually prefer to purchase assets, while sellers generally prefer stock sales. Buying or selling a business may be the most important deal you’ll ever make, so seek professional tax advice as you negotiate. After a deal is done, it may be too late to get the best tax results. Contact us.
Be vigilant about your business credit score
Most people know they’ll face financial difficulties with a subpar personal credit score. Your business credit score is important for the same reason. Various reporting agencies use proprietary algorithms along with other data associated with your employer identification number to calculate this score. Important factors include your bill-payment history, annual revenues and entity choice. Be sure to build a strong credit history and monitor your score for inaccuracies. Contact us for help in using credit to maintain your cash flow and build the bottom line.
Still working after age 70½? You may not have to begin 401(k) withdrawals
If you participate in a qualified retirement plan, such as a 401(k), you must generally begin taking required minimum distributions (RMDs) no later than April 1 of the year after which you turn age 70½. The penalty for withdrawing less than the RMD is 50% of the portion that should have been withdrawn but wasn’t. However, there’s an exception that may apply to certain people if they’re still working for the entire year in which they turn 70½. The RMD rules are complex. Contact us to customize a plan based on your individual retirement and estate planning goals.
2019 Q2 tax calendar: Key deadlines for businesses and other employers
Here are a few key tax deadlines for businesses during Q2 of 2019. APR. 1: File with the IRS if you’re an employer that will electronically file 2018 Forms 1097, 1098, certain Forms 1099 and/or Form W-2G. APR. 15: If you’re a calendar-year corporation, file a 2018 income tax return (Form 1120) or file for a six-month extension (Form 7004) and pay any tax due. APR. 30: Employers report income tax withholding and FICA taxes for Q1 2019 (Form 941) and pay any tax due. Contact us to learn more about filing requirements and ensure you meet all applicable deadlines.