Contemplating compensation increases and pay for performance
Once a business establishes its compensation structure, it must then contemplate the efficacy of linking pay raises to performance. Some believe you shouldn’t use compensation to motivate employees because workers might focus only on money, not quality. Nonetheless, the pay-for-performance model is still widely used. To help prevent employees from perceiving merit increases as an entitlement, communicate clearly about what contributes to pay increases and refine your performance review process so it’s transparent and understandable. Contact us for more info.
The TCJA prohibits undoing 2018 Roth IRA conversions, but 2017 conversions are still eligible
Converting a traditional IRA to a Roth IRA can provide tax-free growth and tax-free withdrawals in retirement. But conversions are subject to income tax. Before the TCJA, if you discovered a conversion would be too costly tax-wise, you could undo it using a “recharacterization” and avoid the tax hit. Effective with 2018 conversions, the TCJA prohibits recharacterizations. If, however, you converted to a Roth IRA in 2017, you have until Oct. 15, 2018, to undo it. We can help you assess whether to recharacterize a 2017 conversion or execute a 2018 conversion.
An FLP can save tax in a family business succession
A family limited partnership (FLP) can help you enjoy the tax benefits of transferring ownership in your business to the next generation yet allow you to retain control. The value of transferred interests is removed from your taxable estate. Discounts might reduce the value for tax purposes, and you can apply your $15,000 annual gift tax exclusion or $11.18 million lifetime gift tax exemption. There also may be income tax benefits. But to withstand IRS scrutiny, FLPs must, among other things, have a business purpose beyond tax savings. Contact us to learn more.
Is there a weak link in your supply chain?
Every company should watch out for weak links in its supply chain. Examples include: 1) legal risks; a supplier could be embroiled in a lawsuit or violation, 2) political risks; a supplier may operate in a politically unstable region (even nationally), and 3) transportation risks; weather or other disasters could compromise a supplier’s shipping routes. To cope, consider strategies such as diversifying your suppliers to avoid overreliance on one. Also, perhaps renegotiate contracts for less risky terms and access to better technology. Contact us for more info.
Do you still need to worry about the AMT?
Do you still need to worry about the individual alternative minimum tax (AMT)? A repeal had been proposed, but it wasn’t included in the final version of the Tax Cuts and Jobs Act (TCJA). The act will, however, reduce the number of taxpayers subject to the AMT. Now is a good time to familiarize yourself with the changes and see if there are any steps you can take during the last several months of the year to avoid the AMT or at least minimize any negative consequences. To learn about the TCJA’s impact on the AMT and assessing your AMT risk for 2018, contact us.
Do you qualify for the home office deduction?
Under the TCJA, employees can no longer claim the home office deduction. But if you run a business from your home or are otherwise self-employed, this deduction may still be available to you. You might qualify if part of your home is used exclusively and regularly for administrative or management activities and you don’t have another fixed location where you conduct these activities. You also might qualify if you physically meet with clients/customers there or you use a storage area in your home exclusively and regularly for business. Contact us for details.
Supply chain pain: ‘Dude, where’s my container?’
Surgere Inc., a Green, Ohio, analytics company, is tackling a major pain point in the auto industry’s supply chain — keeping up with things in transit. Surgere uses a suite of technologies (RFID, NFC, Bluetooth and GPS), as well as predictive analytics software, to help automakers track millions of products — from widgets to engines — as they move through the supply chain. Surgere recently announced that five automakers — Fiat Chrysler Automobiles, General Motors, Honda North America, Nissan North America and Toyota North America — will jointly use Surgere’s data platform to tackle loss and inefficiency in the supply chain. Surgere CEO Bill Wappler spoke with Staff Reporter Urvaksh Karkaria here about the art of keeping track of things.
7 Tips for a Smooth Start to Manufacturing
The initial days of starting up are mostly spent on researching the market, benchmarking competition and seeking funding from friends and family. When you start searching for manufacturers and talking to them, it all starts to feel real. But finding the right manufacturer is not easy.
Tips for Increasing Warehouse Productivity
Improving efficiency in the warehouse is critical to meeting current consumer trends, which are being driven by e-commerce and home delivery of groceries. Warehouse productivity is affected by the type, size, and variety of materials being moved in the warehouse to meet these demands. While changes to these factors over time may increase or decrease performance, the one absolute affecting productivity is optimizing routine processes. Using mobile weighing technologies to reduce truck time at the dock (turn-over) can have one of the greatest effects on a company’s key performance indicators (KPIs).
Have Real Estate Investors Learned From The Recession?
Ultimately, the Great Recession, whose effects we are still recovering from now (though it will likely have a huge impact on our society and economy for years to come) left some valuable lessons for professionals of all kinds in the real estate industry. My team and I certainly remember them, hard-won as they were.