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Should Your Company Join the Roth 401(k) Trend?

The Roth 401(k) plan — a combination of popular 401(k) accounts for employees and the Roth IRA concept for individuals — has been relatively slow to catch on in the workplace. But the federal government is now offering this hybrid retirement savings option to its 3.3 million U.S. government workers*

If it’s good enough for Uncle Sam, does the setup make sense for your business operation? It may be time to take a closer look. Read more

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9 Ways to Keep Your Benefit Plans Healthy

Employee Benefit plans are a critical part of business, but they’re also expensive and time-consuming to administer. Once a plan is in place, it’s easy to turn your attention to other priorities and leave the plan on autopilot. But it’s essential to keep your finger on the pulse of each plan. Otherwise, even if there are no compliance issues, your company could end up overpaying. Here are some points to consider when conducting a benefit checkup.

It takes time to regularly review your benefits, but the payoff can be big. Most important, periodic checkups help your company remain compliant. But a recurrent review might also uncover ways to reduce costs without eliminating benefits. Here are nine measures you can and should take to keep your benefit plans healthy: Read more

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Age Has It’s Privileges and Penalties

Did you, or someone in your family, have a birthday recently? Reaching certain ages can result in the need to make some tax and financial moves. Miss certain deadlines and you might lose out on valuable tax breaks. Take a look at some age-related milestones and why they may be important to you and your family members.

In an era filled with uncertainty, you can count on one thing: time marches on. Here are some important age-related financial and tax milestones to keep in mind for you and your loved ones: Read more

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Taxation Issues in the Gig Economy

Mobile apps and online platforms have revolutionized the way many businesses offer services to consumers. Examples of the so-called “Gig” economy are widespread – from ride sharing and vacation rentals to on-demand housekeeping and legal advice. If you decide to jump on the sharing economy bandwagon, it’s important to understand the tax rules for recognizing income, making estimated payments and deducting legitimate business expenses.

Do you provide car rides through a mobile app, rent out your spare room using an online platform or repair computers for local businesses on demand? If so, you may be considered part of the “gig economy” or the “sharing economy.”

Participation in this emerging method of distributing services can be a good way to earn money in your down time, pursue a more flexible lifestyle and provide cash to offset the expenses associated with owning a vehicle or a home. The IRS recently offered some guidance for this rising trend. Here’s a summary of the key points. Read more

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14 Tax Favored Frindge Benefits: What’s the Right Mix For Your Business

Unfortunately, the Tax Cuts and Job Acts eliminated tax deductions for certain employee transportation fringe benefits, such as company-paid transit passes and parking allowances. It also suspended tax favored treatment for company reimbursements to cover employees’ job related moving expenses. But other fringe benefits are still deductible by employers and tax-free move to employees. Here’s how you can seize the tax breaks that are currently available.

Job applicants look at more than just wages when evaluating potential employers. They consider the whole compensation package, including fringe benefits and perks. These add-ons enable employers to cast a wider net in the job market, helping them attract and retain top-quality workers.

Unfortunately, tax breaks for some fringe benefits were eliminated or suspended by the Tax Cuts and Jobs Act (TCJA). However, some other fringe benefits are still deductible by employers and tax-free to employees. Read more

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Year-End Strategies to Reduce AGI

Adjusted gross income (AGI) is used as a threshold for phaseout provisions that can cut back or eliminate certain tax breaks. Here are AGI-reduction strategies – five short-term and five long-term – that are worth considering. In addition to lowering your federal income tax bill, these ideas might reduce state income taxes, self-employment taxes and exposure to 3.8% net investment income tax

Reducing your current-year adjusted gross income (AGI) is usually a tax-smart idea. Here are ten ways to reduce your AGI (and modified AGI) over the short and long run. Read more

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Tax Strategies For Seniors

With age comes wisdom — and certain age-based tax breaks. This article highlights some tax strategies and breaks that are likely to benefit older taxpayers, including retirement account catch-up contributions, IRA qualified charitable distributions, gifts of highly appreciated assets and medical expense deductions. It also explains how to take advantage of today’s generous unified federal gift and estate tax exemption, while you’re still alive.

Good things come to those who wait. Older taxpayers may be entitled to some age-based tax breaks. Here are the details. Read more

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No Current Deductions Before Business Commences

Current deductions are not allowed for most expenses incurred while a business is still in the start-up phase. For tax purposes, the business must be functioning at the time the expenses are incurred. Many entrepreneurs may be unaware of this rule. This article explains the tax rules for start-up companies.

Starting up a business and wondering about how tax deductions will be handled? The most important thing to understand is that most expenses incurred before a business begins functioning cannot be deducted or amortized until the year when the business does become active. Read more

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Navigating a Global Expansion

Is your business part of the global economy? If not, it may be losing out on some revenue- and value-building opportunities. However, “going global” obviously isn’t as simple as snapping your fingers and tapping into new markets. And it isn’t necessarily right for every business.

Here are several challenges the international marketplace can bring, along with a systematic approach to help your venture succeed globally.

Should you expand your business overseas? Just because you’ve thrived in the United States doesn’t mean you’ll achieve the same sort of results internationally. You don’t want to damage your core business by exhausting resources elsewhere. Read more