Governments — federal, state, and local — provide a variety of economic incentives to encourage businesses to hire workers, invest in capital equipment and property, and become profitable in order to increase their tax revenue. What opportunities are available for small businesses and how do you go about getting them? Economic incentives It’s estimated that government economic incentives are over $85 billion annually. While 90% of these incentives are claimed by large businesses, it still means that $8.5 billion go to what the SBA defines as small businesses (those with up to 500 employees). For “small” small businesses, say those […]

There are two important challenges that every small business owner should know. One:   According to the Workest, retaining good employees is a very big problem for small businesses today; how can this be addressed? Two:   According to the House’s Committee on Small Business, there are 2.3 million business owners who are at or near retirement age; who is going to buy them out? One solution for both challenges is an employee stock ownership plan (ESOP). What’s an ESOP? An employee stock ownership plan (ESOP) is a type of qualified plan designed to invest primarily in employer stock. Much like any […]

As an employer, you are required to withhold from an employee’s paycheck federal (and where applicable, state) income taxes, as well as the employee’s share of Social Security and Medicare (FICA) taxes. (Recently proposed regulations address withholding rules following changes by the Tax Cuts and Jobs Act and the revised Form W-4.)  But this mandatory withholding is only the tip of the withholding iceberg. There are other reasons—some at the employee’s behest and others because of law—for which you must withhold additional amounts. Mandatory withholding for… As an employer you have no choice but to comply with mandatory withholding in […]

Each year, February 14 presents a challenge for business owners. How much celebrating should be encouraged or barred? What dating policies are in place or should there be any? How can everyone avoid hurting some employees’ feelings? Challenging questions for sure, especially in today’s #MeToo / #TimesUp environment. Here are some ideas to keep everyone comfortable and safe on Valentine’s Day. Do have an anti-sexual harassment policy in place You don’t want flirting or other behavior to make other employees uncomfortable, or feel they are being sexually harassed. Guidance on what to know about sexual harassment in the workplace was […]

If you’re owed a tax refund related to a tax return filed for a previous year, the IRS isn’t going to automatically send it to you. It’s up to you to file for it. This means submitting an amended return. Recent legislation has provided opportunities for tax refunds that you may be eligible for…if you file an amended return. Determine whether to do so and how to go about it. Why file an amended tax return now? The Tax Certainty and Disaster Tax Relief Act of 2019, which was part of the Further Consolidated Appropriations Act, 2020, contains a number […]

Is the economy getting better or are we in for some serious problems? You can watch trends and listen to economists, but these aren’t all the answers you need. If the coronavirus pandemic has taught us anything, you can’t anticipate a black swan event (an unpredicted rare event beyond what’s normally expected and which can have serious consequences). The only way to be sure you can handle whatever comes your way and move toward your long-term goals is to make a strategic plan. Strategic plan versus basic business plan Is a strategic plan any different from a plain vanilla business […]

The tax law is not static. Since the publication of this book, Congress has enacted a massive spending measure—the Further Consolidated Appropriations Act, 2020. Part of this measure is the Taxpayer Certainty and Disaster Tax Relief Act of 2019, which makes changes impacting returns for 2018, 2019, and 2020. These include “extenders,” which are tax breaks that expired at the end of 2017 but have been retroactively reinstated and extended through 2020 (or longer), along with a few other breaks that expired at the end of 2019 but have been given one more year. And it includes tax relief for […]

Estimates put the outstanding amount of student loan debt for about 45 million people in the U.S. at over $1.5 trillion. Many of those facing high debt experience stress, delay buying homes, launching businesses, or even starting a family. They also limit or avoid putting money into retirement savings. Legally, employers have no obligation to assist those on their staff with student loan debt. But as a practical matter, especially in today’s tight job market, employers are well advised to do something to help. Here are some ideas: Provide information to help employees Whether employees with student loan debt are […]

The tax law is not static. Since the publication of this book, Congress has enacted a massive spending measure—the Further Consolidated Appropriations Act, 2020. Part of this measure is the Taxpayer Certainty and Disaster Tax Relief Act of 2019, which makes changes impacting returns for 2018, 2019, and 2020. These include “extenders,” which are tax breaks that expired at the end of 2017 but have been retroactively reinstated and extended through 2020 (or longer), along with a few other breaks that expired at the end of 2019 but have been given one more year. And it includes tax relief for […]

Pandemics—the worldwide spread of a new disease—have had profound effects on society and, as a result, on business.  The current coronavirus is raising concerns around the world. What does this mean for your business and can you do anything about it? Impact of prior pandemics The plague that hit Europe and Asia in the mid-1300s, also known as the Black Death, killed as many as 60% of the population and transformed the lives of survivors and their economy in the aftermath. Because there were fewer workers after the epidemic passed, wages rose. Lords began to keep sheep, which required fewer […]