It’s no revelation to hear that the federal tax laws are very complicated. There are many reefs and rocky shoals. But the IRS has created a number of safe harbors that taxpayers can rely upon to secure their intended tax results with greater certainty. Here is a listing of some key safe harbors for small businesses. It’s boring stuff that can save your business significant taxes. Building improvements safe harbor It’s often difficult to determine whether an expenditure for a building is a repair, which is currently deductible, or an improvement, which must be capitalized and is usually recovered through […]

The federal overtime pay rule takes effect January 1, 2020 If certain employees work more than 40 hours in a workweek, they must be paid time and a half. This requirement can’t be avoided in most cases by giving workers comp time. A federal overtime pay rule that becomes effective on January 1, 2020, impacts which employees are covered by overtime rules. Now is the time to understand what the new rule is and plan ahead for handling your staffing needs in the coming year. Nonexempt employees Unless a worker is exempt from the Fair Labor Standards Act (FLSA), the […]

No, it isn’t about spelling. It’s a new law in California that governs the determination of whether a worker is an employee or independent contractor for purposes of certain state labor laws. This new law may be a preview of things to come from other states and the federal government for a variety of purposes. Overview of the ABC test Last year, a California court decided that a worker of a same-day courier and delivery service was an employee subject to the state’s wage and hour laws. The court enunciated a test that presumes a worker to be an employee […]

I can still hear my 6th grade teacher say (very often) that “patience is a virtue.” If you’re a Type A personality like me, patience isn’t your strong suit. It’s too easy to be impatient with others when you know you think you can do better, faster, and smarter than what they’re supposed to be doing. But being a good leader requires you to develop patience. Why is patience important? There are many reasons why it’s important for a leader to have patience. One article listed 12 reasons, such as improved productivity, improved time management, and adapting to change. I’d […]

Now that we’re in the fourth quarter of 2019, it’s time to craft your budget for the coming year. This is an annual chore that should not be overlooked or delayed. As Dave Ramsey said: “A budget is telling your money where to go instead of wondering where it went.” In preparing your budget for 2020, be sure to consider the following projections: Payroll Are you planning to give raises? The average pay increase for 2020 is projected to be 3.3% for non-management employees. As the owner, are you giving yourself a pay increase? Be sure to consider the impact […]

October is Cybersecurity Awareness Month, making it a great time for companies to “audit” their cybersecurity practices. Here are some ideas to consider in becoming prepared for a cyber attack. Understand your risk The Keeper Security’s 2019 SMB Cyberthreat Study released in the summer found that 43% of all attacks are against small and mid-sized businesses.  Yet 66% think it unlikely that they’ll be attacked. The numbers tell the story. You need to understand the likelihood is high that you’ll experience some cyber attack (I did earlier this year). And you need to understand what’s at stake. Your data are […]

The term “will” connotes the document used to distribute property when a person dies. However, professionals–doctors, psychologists, and attorneys, etc.—should leave instructions on how to handle their practices in the event of incapacity or death. And even business owners who don’t think of themselves as professionals with practices, can use a similar document to provide for the smooth administration of a business in case of incapacity or death. What is a professional will? It is a legal document naming a person to handle a professional’s practice and deal with a professional’s patients or clients in the event of incapacity or […]

FBAR (Report of Foreign Bank and Financial Accounts) The government filed a lawsuit against a person seeking $4 million in penalties for his failure to report personal foreign accounts as well as foreign business accounts over which he had signatory authority. That’s not chump change. Under the Bank Secrecy Act, each year you must make an annual report to the U.S. Treasury if you hold certain foreign financial accounts. This annual report is referred to as FBAR (it’s FinCEN Form 114, Report of Foreign Bank and Financial Accounts). The failure to file if required to do so can result in […]