Treasury: Be Aware of New Collections Scam
Taxpayers who receive a letter from a scammer or have questions about their state debts should call Treasury’s Collections Service Center at 1-866-218-7224. A customer service representative can log the scam, verify outstanding state debts and provide flexible payment options.
Senate Panel Approves Critical Changes to Michigan’s Paid Sick Leave Mandate
Minutes ago, the Senate Government Operations Committee reported out legislation to make changes to existing Mandated Paid Leave legislation adopted in September. It is now critical that you and your fellow manufacturers urge your elected officials to support Senate Bill 1175. Without changes, the Earned Sick Time Act will impose the most extreme paid sick […]
Devote some time to internal leadership development
Internal leadership development is practiced when owners and executives devote time to mentoring current managers and employees who might one day become leaders. Try these tips: Sit down with current and potential leaders to bolster strengths and address shortcomings. Invite them to meetings they might not otherwise attend, including those with vendors and customers. Get them involved with an industry trade group or local chamber of commerce. When they’re ready, give them real decision-making authority on a project. Contact us for further info and ideas.
Does prepaying property taxes make sense anymore?
Prepaying property taxes has been a popular year-end tax-planning strategy. But does it still make sense? For many, particularly those in high-tax states, it doesn’t. The TCJA made two changes that affect this strategy: 1) nearly doubling the standard deduction, so fewer taxpayers will itemize, and 2) putting a $10,000 cap on state and local tax deductions. If you no longer itemize or you’ve already used up your $10,000 limit (on income or sales taxes or on previous property tax installments), prepaying property tax will provide no benefit. Contact us for details.
When holiday gifts and parties are deductible or taxable
It’s a great time of year for businesses to show their appreciation for employees and customers by giving them gifts or hosting holiday parties. Gifts to customers are generally deductible up to $25 per recipient per year. De minimis, noncash gifts to employees aren’t included in their taxable income yet are still deductible by you. Holiday parties are fully deductible provided they’re primarily for the benefit of non-highly-compensated employees and their families. If customers attend, parties may be partially deductible. Questions? Contact us.
Catch-up retirement plan contributions can be particularly advantageous post-TCJA
Will you be age 50 or older on December 31? Are you still working? Are you already contributing to your 401(k) up to the regular annual limit? Then you may want to make “catch-up” contributions by the end of the year. Increasing your retirement plan contributions can be particularly advantageous if your itemized deductions for 2018 will be smaller than in the past because of changes under the TCJA. The additional contributions can reduce your taxable income and help make up for the loss of some of your itemized deductions. Contact us for more information.
Estimates vs. actuals: Was your 2018 budget reasonable?
If your company created a budget for the 2018 calendar year, you can now compare its estimates to actual results and determine whether it was reasonable, and, if not, how to adjust it to be more accurate for 2019. Estimates often start with historical financial statements. But internal and external factors may merit adjustments. Think about new contracts, major growth moves and regulatory changes. Above all, find the right method of tracking your financials throughout the year so you’re working with up-to-date data. Let us help you through the budgeting process.
3 ways to get more from your marketing dollars
In a strong economy, some companies cut back on marketing while others overspend on it. A better approach is to get more from your investment so you can cut back or ramp up as prudent. Start with digital marketing: Use search engine optimization, social media and Internet-only deals to improve customer focus. And don’t assume you’re at the mercy of high advertising rates; exploit competition among today’s marketing/advertising channels to find good deals. Last, use press releases as a low-cost complement to your marketing campaigns. Contact us for more info.
Mutual funds: Handle with care at year end
As we approach the end of 2018, it’s a good idea to review the mutual fund holdings in your taxable accounts and take steps to avoid potential tax traps. For example, near year end, funds typically distribute net realized capital gains to investors. These gains will be taxable to you regardless of whether received in cash or reinvested in the fund. So, for each fund, find out the size of distributions and the breakdown of long-term vs. short-term gains. If the tax impact will be significant, consider strategies to offset the gain. Contact us to learn more.
It’s not too late: You can still set up a retirement plan for 2018
If most of your money is tied up in your business, retirement can be a challenge. So if you haven’t already set up a tax-advantaged retirement plan, consider doing so this year. There’s still time to set one up and make contributions that will be deductible on your 2018 tax return. And funds can grow tax deferred. If you have employees, they generally must be allowed to participate in the plan, provided they meet the requirements. But you might be eligible for a $500 tax credit for setting up the plan. Would you like to set up a plan this year? Contact us!