Commercial Clean Vehicle Credit
For Businesses and tax-exempt organizations looking to purchase new commercial clean vehicles in 2023, you may qualify for the New Commercial Clean Vehicle Credit The credit is offered to Businesses and Tax-exempt organizations There is no limit to the number of credits used by the business The credit is non-refundable The credit can be carried […]
Secure 2.0 Update
SECURE 2.0 is an expansion of the SECURE Act of 2019. Its purpose is to improve retirement laws on saving accounts and increase retirement planning for Americans of all ages and all stages. While the Act was signed into law on December 29, 2022, the changes that will reflect vary over the coming years but […]
How the new SECURE 2.0 law may affect your business
If your small business has a retirement plan, and even if it doesn’t, you may see changes and benefits from a new law. Provisions in the SECURE 2.0 law will kick in over several years. For example, 401(k) plans will be required to automatically enroll employees when they become eligible, beginning with plan years after December 31, 2024. Employees will be permitted to opt out. Also in the new law are better retirement coverage for part-time workers; higher catch-up contribution limits for some 401(k) participants; provisions for small businesses with no retirement plan and much more. Contact us if you have any questions about how the new law affects your situation.
Getting into data analytics without breaking the bank
Data analytics is the science of collecting and analyzing sets of data. When done right, it can shed light on what could help or hinder a business in fulfilling its strategic objectives or improving its performance in a cost-efficient way. For example, data analytics could enable you to narrow down who your most potentially valuable customers are, or it could help you decide whether to obtain outside financing (and, if so, how much). But it’s hardly a simple process. You’ll need to identify your company’s informational needs, choose appropriate metrics and then carefully invest in the right software. Contact us for help deciding whether data analytics would likely pay off for you.
Tax-wise ways to save for college
If you’re a parent with college-bound children, you may want to save for future college costs. There may be tax-favored ways to save. For example, 529 plans allow you to make contributions to an account set up to meet a child’s education expenses. Contributions aren’t deductible and are treated as taxable gifts to the child. But they’re eligible for the $17,000 annual gift tax exclusion in 2023. A donor who contributes more than the annual exclusion limit for the year can elect to treat the gift as if it were spread out over a 5-year period. Distributions of earnings that aren’t used for qualified expenses are subject to income tax plus a 10% penalty. Other rules apply.
Employers should be wary of ERC claims that are too good to be true
The Employee Retention Credit (ERC) was a valuable tax credit that helped employers that kept workers on staff during the height of the COVID-19 pandemic. While the credit is no longer available, eligible employers that haven’t yet claimed it might still be able to do so by filing amended payroll returns for tax years 2020 and 2021. However, the IRS is warning employers to beware of third parties that may be advising them to claim the ERC when they don’t qualify. Some third-party “ERC mills” often charge large upfront fees or a fee that’s contingent on the amount of the refund. If you didn’t claim the ERC, and believe you’re eligible, contact us. We can advise you on how to proceed.
POLK & ASSOCIATES EXPANDS REACH AND STRENGTHENS TEAM WITH STRATEGIC MERGER
New merger bolsters expertise, experience and industry-specific knowledge in key core competencies Bingham Farms, MI – January 1, 2023 – Polk & Associates (POLK) announces today a strategic merger that bolsters our Niche Industry competencies. Founded in 1979 POLK specializes in providing highly personalized services to clients in the manufacturing, real estate, healthcare and supporting […]
Inbound vs. outbound: Balancing your company’s sales strategies
Most businesses must balance inbound sales, which originate when a customer or prospect contacts you, with outbound sales, which arise from members of your sales team reaching out to customers and prospects. Inbound sales call for a strong brand-based marketing strategy and a well-trained, patient sales staff. They’re generally less work but may be harder to close. Outbound sales are usually more labor-intensive. They’re also typically more expensive because of higher marketing/advertising costs, travel expenses and staff turnover. But outside sales are more targeted and can generate more revenue. As we head into the new year, now’s a good time to find the right balance. Contact us for help.
Unused PTO a problem? Consider a contribution arrangement
A new year has arrived. For many businesses, this means employees’ paid time off (PTO) arrangements have reset, with some workers leaving a few or many unused hours on the table. There are various ways to help workers better use their PTO, including regular reminders from supervisors and helpful information about wellness. But if you offer a 401(k) plan, consider a PTO contribution program. One of these allows employees with unused vacation hours to elect to convert them to retirement plan contributions. You’ll need to amend your 401(k) plan and still follow the plan document’s eligibility, vesting, rollover, distribution and loan terms. Additional rules may apply. Contact us for more info.
How to minimize the S corporation LIFO recapture tax
If you’re considering converting your C corporation to an S corporation, there may be tax implications if you’ve been using the last in, first out (LIFO) inventory method. That’s because of the LIFO recapture income that will be triggered by converting to S corp status. As you’re aware, your corporation has been reporting a lower amount of taxable income under LIFO than it would have under the first in, first out (FIFO) method. The reason: The inventory taken into account in calculating the cost of goods sold under LIFO reflects current costs, which are usually higher. We can meet to compute what the tax on recapture would be and to see what planning steps might be taken to minimize it.
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