Reduce insurance costs by encouraging employee wellness
The safer your workplace, the less likely you’ll incur high workers’ compensation premiums. But think about the impact of employee wellness on other insurance costs, too. From a physical well-being standpoint, a formal wellness program can encourage healthier life choices and thereby reduce health coverage costs. In terms of mental health, providing the right training and offering an employee assistance program can create a more positive work environment and lessen the likelihood of accidents and lawsuits that drive up insurance costs. Contact us for more info.
Could “bunching” medical expenses into 2018 save you tax?
Some of your medical expenses may be tax deductible, but only if you itemize deductions and have enough expenses to exceed the applicable floor for deductibility. With proper planning, you may be able to time controllable medical expenses to your tax advantage. The Tax Cuts and Jobs Act (TCJA) could make bunching such expenses into 2018 beneficial for some taxpayers. At the same time, certain taxpayers who’ve benefited from the deduction in previous years might no longer benefit because of the TCJA’s increase to the standard deduction. Contact us to learn more.
Selling your business? Defer — and possibly reduce — tax with an installment sale
You’re ready to sell your business and want to get the return from it you’ve earned from the time and money you’ve invested. That means getting a good price and minimizing the tax hit on the proceeds. One option that can help defer tax is an installment sale. Spreading gain over several years is especially beneficial if it allows you to stay under the thresholds for triggering the 3.8% net investment income tax or the 20% long-term capital gains rate. But it’s not without tax risk. For help determining whether an installment sale is right for you, contact us.
Following the ABCs of customer assessment
Every established business should regularly assess its customer base. One way to approach this task is to follow the ABCs. First, choose a time period and use financial data to calculate your customers’ profitability. Next, divide customers into three groups: 1) an A group of your most profitable buyers, 2) a B group of positive contributors, and 3) a C group of unprofitable customers. From here you can focus on nurturing relationships with the A group, elevating the status of B-group customers, and possibly moving on from the C group. Contact us for help.
Consider all the tax consequences before making gifts to loved ones
Many people choose to pass assets to the next generation during life, whether to reduce the size of their taxable estate, to help out family members or simply to see their loved ones enjoy the gifts. If you’re considering lifetime gifts, be aware that which assets you give can affect the tax consequences. For example, to minimize your heir’s income tax, gift property that hasn’t appreciated significantly while you’ve owned it. The heir can sell the property at a minimal income tax cost. Contact us to discuss the tax consequences of any gifts you’d like to make.
Now’s the time to review your business expenses
As we approach the end of the year, it’s a good idea to review your business’s expenses for deductibility. At the same time, consider whether you’d benefit from accelerating certain expenses into this year. There’s no master list of deductible business expenses in the Internal Revenue Code (IRC). Some deductions are expressly authorized or excluded, but most are governed by the general rule of IRC Sec. 162, which permits businesses to deduct their “ordinary and necessary” expenses. Also, the TCJA reduces or eliminates many deductions. Contact us to learn more.
How Lean Manufacturing Eliminates Waste in Industrial Environments
The mobile robot proliferation is an extension of lean manufacturing principles. Whether labor savings are from tugger application or with fork attachments, reliable navigation that requires no magnetic tape or RFID tags to guide its way safely through a facility, the growth the automonous environment is unstoppable. The two primary prongs of lean manufacturing eliminate […]
Tax-free fringe benefits help small businesses and their employees
In today’s tightening job market, to attract and retain the best employees, small businesses need to offer not only competitive pay, but also appealing fringe benefits. Those that are tax-free are especially attractive to employees. Examples include many types of insurance (health, disability, long-term care, life) and assistance plans (dependent care, adoption and educational), subject to certain limits. The tax treatment of some benefits, such as moving expense reimbursements and transportation benefits, has changed under the TCJA. Contact us to learn more.
529 plans offer two tax-advantaged education funding options
Section 529 plans are a popular education-funding tool because of tax and other benefits. Two types are available: 1) prepaid tuition plans, and 2) savings plans. A prepaid tuition plan guarantees tuition regardless of its cost when the child attends the school. A savings plan can fund expenses beyond college tuition on a tax-free basis. The TCJA expands the definition of qualified expenses to generally include elementary and secondary school tuition. However, tax-free distributions used for such tuition are limited to $10,000 per year. Contact us with questions.
4 pillars of a solid sales process
Generally, there are four pillars of a solid sales process. First, your marketing and sales departments need to work together to create an expanding universe of customers and prospects. Second, a sense of urgency is crucial; determine how quickly salespeople are following up on leads. Third, documentation is important and unavoidable. Ensure you’re using the right technology to track leads and sales. And fourth, consistency in approach typically yields success. Look for irregularities in the sales process and eliminate them. Contact us for further info and ideas.
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