The 2020 Edition Book Review For more than 25 years, I’m proud to say my tax book for small businesses has been the go-to guide for owners and their tax advisors. The 2020 edition for preparing 2019 returns as well as tax planning for 2020 has been updated to incorporate new laws, court decisions, and IRS pronouncements. As has been my practice, I’ve written my own book review to explain the purpose of the book, what’s new, and what’s ahead. Why small business owners need a tax book If you’re like the vast majority of small business owners (86%), you […]

If you have a 401(k) plan, even one covering only you (“self-only 401k”), be sure that you are operating in accordance with government rules. The failure to comply fully can result in penalties or, even worse, loss of plan qualification so that all benefits become immediately taxable. The following is a checklist modified from an IRS’s 401(k) Plan Checklist that you can use to ensure you’re fine and have no worries about your plan.   Audit Questions Yes No Have you reviewed your plan documents to make sure they’ve been updated for law changes? Do you even know where the […]

National Holiday of Thanksgiving In the midst of the Civil War in 1863, by proclamation President Lincoln scheduled a national holiday of Thanksgiving.  Here’s an excerpt from the proclamation:           I do, therefore, invite my fellow-citizens in every part of the United States, and also those who are at sea, and those who are sojourning in foreign lands, to set apart and observe the last Thursday of November next as a Day of Thanksgiving and Prayer to our beneficent Father who dwelleth in the heavens. And I recommend to them that, while offering up the ascriptions […]

President Harry Truman summed up leadership with his deck sign that said:  “The Buck Stops Here.” As the leader of the country, he knew he had to take ultimate responsibility for everything that happened.  As the leader of your business, you should follow suit. Antithesis of leadership Truman’s slogan is the opposite of bad leadership where a business owner “passes the buck” and tries to place blame for mistakes or problems on other people, events, or bad luck. Blaming employees, for example, is not only counter to good leadership but is detrimental to the business. These employees won’t trust the leader, […]

Now is the time to make your employee benefits plans for the coming year. What you offer depends on what your company can afford, so check your budget and line up what to offer employees in addition to any salary or wage increases you may make. Keep in mind that most employee benefits are not subject to payroll taxes (look at the chart on page 6 of IRS Publication 15-B), so offering them is less costly than merely increasing wages. The following is a list of some key benefits to consider and the limitations that apply for 2020. Be sure […]

Those born between 1995 and 2009 (depending on the source) are referred to as Gen Z (Generation Z) and some of them are now becoming part of the job force. As an employer, it’s helpful to recognize that as a group there are certain characteristics that distinguish them from the prior generation (Millennials born between 1980 and 1994). This may help you better handle your staff. And even if you aren’t hiring, knowing more about this group can help you better market to them. Keep in mind, of course, that talking about a group is merely speaking in generalities. There […]

The value of an ownership interest in a business may be worth a lot by the time an owner dies. For heirs, whether this interest is diminished by estate taxes depends on the situation…how valuable that interest is and when the owner dies. For planning purposes, things are very confusing. Let’s try to sort them out. Federal estate tax rules When the value of an estate is below a threshold amount (called an exemption), there is no federal estate tax. The exemption amount for an owner dying in 2019 is $11.4 million. A married couple can effectively double the exemption […]

According to the Small Business & Entrepreneurship Council’s The Digital Boost to Startups and Small Businesses: Online Advertising Delivers BIG Benefits, online advertising is a game changer for small businesses. In this holiday season, and throughout the year, consider the benefits you can reap from using online advertising as well as the ways to optimize your budget and your efforts in online advertising. Benefits of online advertising For some businesses, traditional media venues for advertising, such as print and radio, remain helpful. But for the vast majority of small businesses, and especially startups, online advertising is extremely useful because of […]

Telework is a prevalent practice these days, especially for work that can easily be done remotely (e.g., business consulting, marketing, and programming). According to the State of Remote Work, it’s estimated that 66% of companies allow remote work and 16% have a fully-remote workforce. If you are thinking about engaging employees to work offsite, be sure to understand how it can benefit you and your employees. But don’t ignore some of the complications for this work arrangement. Benefits of hiring remote workers Today’s tight job market has forced some companies to look outside their geographic area to find the talent […]