“HSA + HDHP” represents the concept of offering a Health Savings Account (HSA) coupled with a high-deductible health plan (HDHP). For 2019, an HDHP must have a deductible of at least $1,350 for single coverage or $2,700 for family coverage. Your business and the employee combined can make pretax HSA contributions up to $3,500 for…
Back-to-school time is an opportunity to step up your business development efforts. Here are three inspiring examples: 1) A real estate agency sponsors a middle school’s parent-teacher organization to raise the visibility of its agents. 2) An engineering firm donates equipment and mentors students to encourage interest in science, technology, engineering and math. 3) A…
The Tax Cuts and Jobs Act (TCJA) liberalized the eligibility rules for using the cash method of accounting, making this method (which is simpler than the accrual method) available to more businesses. Now the IRS has provided procedures for obtaining automatic consent to change accounting method under the TCJA. If you’re eligible for both methods,…
Every company should watch out for weak links in its supply chain. Examples include: 1) legal risks; a supplier could be embroiled in a lawsuit or violation, 2) political risks; a supplier may operate in a politically unstable region (even nationally), and 3) transportation risks; weather or other disasters could compromise a supplier’s shipping routes.…
Some common deductions for businesses are meal (generally 50%), vehicle and travel expenses. Deductibility depends on a variety of factors, but proper documentation is one of the most critical. Following some simple steps can help ensure your deductions will pass muster with the IRS. First, keep receipts, canceled checks or similar documentation. Also, track the…
When maintaining or updating your company’s website, trust is an essential building block. For starters, convey to visitors that you’re a bona fide business staffed by actual human beings. Include an “About Us” page with the names, photos and short bios of owners and key staff members. Clearly and widely provide general contact info as…
The TCJA allows qualifying noncorporate owners of pass-through entities to deduct as much as 20% of qualified business income. But once taxable income exceeds $315,000 for married couples filing jointly or $157,500 for other filers, a wage limit begins to phase in. When the limit is fully phased in, the deduction generally can’t exceed the…
For small businesses, managing payroll can be one of the most arduous tasks. A crucial aspect is withholding and remitting to the federal government the appropriate income and employment taxes. If your business doesn’t, you, personally, as the business’s owner, could be considered a “responsible party” and face a 100% penalty. This is true even…
Ready to offer a 401(k) plan? Know your options: Traditional 401(k)s let employees contribute pretax dollars and give employers the option of matching contributions. But rigorous testing rules apply. Roth 401(k)s allow employees to contribute after-tax dollars and take tax-free withdrawals (subject to limitations). Safe harbor 401(k)s avoid strict testing but require certain employer contributions.…
Funny thing about customers: They can keep you in business, but can also put you out of it. The latter circumstance may occur if you overly on a few customers that abuse their credit. To prevent this, keep your credit application form comprehensive and updated. When working with private companies, request financial statements and look…