Category Archives: Business Reports

By Robert Schermerhorn, CFP

With only 14 percent of small employers with fewer than 100 employees sponsoring a retirement plan according to the Government Accountability Office, finding the right retirement plan is more important than ever. Having a retirement plan in place not only helps the business owner work towards securing their financial future, but can also make your business more competitive in attracting, and maintaining, top employees.

There are also potential tax benefits to offering a plan that reduces your company’s tax burden, as plan contributions are deductible as a business expense, as well as tax credits for new start-up plans.

Although most business owners think of a 401(k) plan when deciding on a retirement plan, there are several different types of plans available that may be more appropriate for your business.

The following are retirement plans that small business owners might consider:

1. 401(k) plans

2. Solo 401(k) plans

3. SEP IRA (Simplified Employee Pension Plan)

4. SIMPLE IRA (Savings Incentive Match Plan for Employees)

By Jane-Marie Schaeffer

How can you best tax plan in 2017? Will the proposals of the Trump campaign impact your immediate plans? The answer is “depends.”

There are certain changes that were already scheduled to happen in 2017 irrespective of the election results. In addition, while there will be more changes if President-Elect Trump’s proposed tax plan gets passed, most would not take effect until 2018.

Individual income tax – brackets and rates

Currently, there are seven income tax brackets and they are expected to remain in place in 2017. Income tax rates range from a low of 10 percent to the maximum of 39.6 percent. For married couples, the maximum tax rate of 39.6 percent will apply only after adjusted gross income reaches $470,700. Capital gains will continue to be taxed at 0 percent, 15 percent or 20 percent, depending on your income level.

If the tax proposals Trump’s campaign presented were enacted, it would simplify the tax code by reducing the number of income tax brackets from seven to three (12 percent, 25 percent and 33 percent), with the highest bracket starting when adjusted gross income reaches $225,000 for a married couple.

This would result in a significant reduction in taxes collected overall, however results at specific income levels would vary depending on the deductions and credits that would be available to each taxpayer. Capital gains tax rates would remain the same under Trump’s plan.

Individual income tax – deductions and misc.

The annual standard deduction gets a small increase in 2017, up to $6,350 for individuals and $12,700 for married couples. The personal exemption amount did not change and remains at $4,050 per person. Taxpayers have the choice of using either the standard deduction or the itemized deduction (whichever is higher).

By Patrice Mastrianni

When we “make the draft” to join a new business team we are pumped up right out of the gate. The rush of mastering new job skills, learning the needs and wants of your teammates, and throwing your ideas in the ring are very energizing …  at least in the first quarter.

As time goes on, we settle into a routine and operate at a steady pace or, in the worst-case scenario, play a critic from the sidelines. Normal game changers, like having to perform tasks not on your job description, tolerating an irritating coworker or dealing with economic ups and downs, deflates our drive in no time.

It’s in every employer’s best interest to make sure their team stays on track and each member is in a position that best fits their skills. It’s the captain’s job to make sure no one sits on the bench and everyone focuses on the same game plan.

Keeping your group driven requires ingenuity and diligence. However, budget restraints and day-to-day business demands can often get in the way of a consistent team-building program. Team exercises can be as ambitious as a full-day golf outing or as small as interoffice games that engage departments or individuals in problem solving, communication and collaboration.

By Kevin M. Hedley, MS, CPA, PFS

As is often quoted “Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.” (Benjamin Franklin, 1789)

With that said, this year is certainly no different. The uncertain part is of course how much if at all our taxes will change this year with a new administration.

President Trump has discussed some new personal tax rates. His suggested tax rates and breakpoints for married-joint filers would be: Less than $75,000, 12 percent; more than $75,000 but less than $225,000, 25 percent; and more than $225,000, 33 percent. Brackets for single filers would be half of these amounts. These three rate brackets would replace our current seven rate brackets which go as high as 39.6 percent.

In addition to the changes in rates he has also called for some other drastic changes including, but not limited to: the Affordable Care Act, 3.8 percent tax on investment income would be repealed; the alternative minimum tax (AMT) would be repealed; the standard deduction for joint filers would increase to $30,000 and the standard deduction for single filers would be $15,000; Personal exemptions would be eliminated; head-of-household filing status would be eliminated; itemized deductions would be capped at $200,000 for married-joint filers and $100,000 for a single filer; standard corporate tax rate would be reduced to 15 percent from the current 35 percent.

BY JEANNINE DUBIAC, FPC

For many business owners, payroll taxes can be confusing and overwhelming.

Payroll doesn’t stop with just issuing checks. Compliance with federal, state and local agencies can be a time-consuming responsibility, requiring detailed record keeping and up-to-date compliance with the ever changing tax laws.

Calculating the employees’ withholdings and determining the employer taxes is just one small piece that a payroll service offers to small businesses. The payroll service becomes the responsible party for maintaining all payroll tax requirements on a consistent basis.

Experienced payroll providers should ensure the job is done right, getting employees paid on time, correctly, every time and allowing the business owner to focus on running their core business.

Payroll services save businesses money by eliminating their tax liability and potential penalties. They provide detailed information regarding tax payments and employee wages to your CPA.

By Christopher W. Meyer President-elect Donald Trump recently observed that no computer is safe from hacking and that the only way to securely convey information is to deliver it by courier.  While experts agree that no computer system can be made 100 percent safe, they also have pointed out that “old fashioned” methods of...

By Rob Snell

Now that we are in the heart of the holiday season, you may be thinking about ways you can put your money where your heart is.

Specifically, you might be pondering which groups you should support with charitable gifts. And as long as you choose groups that meet the right criteria, your generosity can also be rewarding to you, in the form of tax benefits.

To begin with, you’ll want to make sure you are giving to a reputable charity. That means you’ll need to ask some questions.

by Michael Cruz

It’s all about habits. The way we eat is established by patterns or habits. So, after the diet we go back to our established patterns. And guess what? We gain back all, and sometimes more of the weight we lost.

The same is true when we try to change something in our business life. Did you know that it takes at least six months to change an established pattern or habit? And that is why we often fail to be consistent in new business habits.