What business owners should know about stop-loss insurance
Many businesses opt for a self-insured (self-funded) health care plan rather than a fully insured one. Although stop-loss insurance isn’t required for self-insured plans, companies often find it beneficial. Why? It protects the business against catastrophic claims that greatly exceed the amount budgeted to cover costs. Stop-loss insurance doesn’t directly pay participants’ benefits; it reimburses the company for certain claims properly paid by the health care plan above a stated amount. Therefore, it’s critical to line up the coverage terms. We can help you determine whether stop-loss insurance is right for your business or whether your current policy is cost-effective.
Protect your business with a cybersecurity assessment
The convenience and analytical power of today’s cloud-based business technology is breathtaking, but it creates a tempting target for hackers. A cybersecurity assessment can help ensure that your company is protecting itself. A properly conducted assessment involves taking inventory of hardware and software, identifying potential vulnerabilities, and implementing internal controls and other protections. It can also help you develop an incident response plan to mitigate the damage in the event of a breach. There are various free frameworks for conducting a self-assessment but, if you’re particularly concerned, you could engage a qualified consultant to conduct a customized assessment.
Thinking about participating in your employer’s 401(k) plan? Here’s how it works
Interested in participating in a 401(k) plan offered by your employer? Under a 401(k), you have the option of setting aside a certain amount of your wages in a qualified retirement plan. By making this election, you’ll reduce your gross income, and defer tax on the amount until the cash (adjusted by earnings) is distributed to you. It will either be distributed from the plan or from an IRA or other plan that you roll your proceeds into after leaving your job. Your elective contributions are subject to annual IRS limits. For 2021, the maximum amount permitted is $19,500. If you’re age 50 or older, you can make additional “catch-up” contributions. For 2021, that extra amount is $6,500.
4 Steps to Laser-Focused Property Management
The multifamily landscape is ever-changing and the tumultuous times the industry has weathered since the onset of the pandemic have only emphasized the importance of having a strong strategy in place when it comes to property management, as this is an integral part of the foundation for success. Now, more than ever before, it’s critical […]
Multifamily Metrics Show Strength in Q3
Multifamily performance metrics have accelerated through the third quarter, according to a preliminary trend analysis from Moody’s Analytics REIS. The highest quarterly growth figures on record since REIS began publishing quarterly data in 1999, asking and effective rents increased 7.5% and 7.9%, respectively. This is triple from the prior record set in the third quarter […]
How to Invest in Real Estate With Your IRA
It’s complicated—there are a lot of rules, and it requires a lot of capital—but investing in property through an IRA can be a good way to diversify your investments, especially if you feel like you’re currently investing in too many stocks. How property investment through an IRA works First off, this would be a pure investment: You and your family can’t live in or […]
Employers: The Social Security wage base is increasing in 2022
The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $147,000 for 2022 (up from $142,800 for 2021). Wages and self-employment income above this threshold aren’t subject to Social Security tax. The Federal Insurance Contributions Act imposes two taxes on employers, employees and self-employed workers. One is for Social Security tax, and the other for Medicare tax. There’s a maximum amount of compensation subject to the Social Security tax, but no maximum for Medicare tax. For 2022, the FICA tax rate for employers is 7.65% — 6.2% for Social Security and 1.45% for Medicare (the same as in 2021).
Engaging in customer-focused strategic planning
For small to midsize businesses, focusing strategic planning on customers may be the most direct route to a better bottom line. First, pick a period (perhaps one, three or five years) and calculate the profitability contribution level of each major customer or customer unit. Next, divide customers or customer units into three groups: 1) an A group of the most profitable buyers, 2) a B group of positive contributors, and 3) a C group of unprofitable customers. Finally, develop a customer-focused strategic plan that nurtures relationships with the A group, increases the potential of the B group, and potentially starts moving on from members of the C group. Contact us for help.
You may owe “nanny tax” even if you don’t have a nanny
Have you heard of the “nanny tax?” Even if you don’t employ a nanny, it may apply to you. Hiring a house cleaner or other household employee (who isn’t an independent contractor) may make you liable for federal income tax, Social Security and Medicare (FICA) tax and federal unemployment tax. You may also have state tax obligations. In 2021, you must withhold and pay FICA taxes if your worker earns cash wages of $2,300 or more ($2,400 in 2022). You pay household worker obligations by increasing your quarterly estimated tax payments or increasing withholding from wages, rather than making a lump-sum payment. Employment taxes are then reported on your tax return. Questions? Contact us.
Get your piece of the depreciation pie now with a cost segregation study
If your business is depreciating over a 30-year period the entire cost of constructing the building that houses your operation, you should consider a cost segregation study. It might allow you to accelerate depreciation deductions on certain items, which can reduce taxes and boost cash flow. Under current law, the potential benefits are now even better than they were in the past due to enhancements to certain depreciation tax breaks. You may even be able to get the benefit of speedier depreciation for items that were incorrectly claimed. Cost segregation studies can yield substantial benefits, but they’re not right for all businesses. Contact us to find out whether this would be worthwhile.
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