Tax breaks and other nontax benefits are available for business owners who hire their children this summer. By hiring your child, you may be able to: Realize payroll tax savings, depending on how your business is organized and your child’s age Convert high-taxed income into income that is low-taxed or tax-free Enable retirement plan contributions…

Although President Biden has suggested that he wants to roll back current federal gift and estate tax exemption amounts (reducing the estate tax exemption to $3.5 million, imposing a top estate tax rate of 45%, and reducing the gift tax exemption to $1 million), any proposals would have to be passed in Congress. In the…

You may find that you have questions about your 2020 tax return, even after you’ve successfully filed with the IRS. Here are three quick answers to some of the most frequently asked questions at this time of year. When will I receive my refund? You can check the status of your refund using the IRS’…

The number of workers engaged in the “gig” or sharing economy had already been growing before the COVID-19 pandemic hit, according to several reports. During the pandemic, reductions in working hours have resulted in even more people turning to gig work to make up lost income. People who perform these jobs—which include delivering food, providing…

If you’re one of the many businesses that use independent contractors to help keep down costs, you’ll want to ensure that these workers are classified properly for federal tax purposes. It can be a costly mistake if the IRS reclassifies them as employees. Determining whether a worker is an employee or an independent contractor for…

In recent years, accounting rules have changed, and certain balance sheet items—such as asset retirement obligations, derivatives, and intangible assets acquired in a business combination—must now be reported at “fair value” rather than historical cost. Reporting at fair value brings your company’s financial statements into better alignment with today’s market values, but estimating fair value…

The business energy credit, a valuable federal income tax benefit, is intended primarily for businesses that use alternative energy (other energy tax breaks may apply for the use of alternative energy in the home or production of energy for sale). This tax benefit applies to the acquisition of several types of alternative energy property and…

If your company plans to buy or merge with another business, you’re probably focusing your attention on negotiating deal terms and conducting due diligence. However, you’ll also want to address the transaction’s post-closing financial reporting requirements—otherwise, you may face disappointing financial results, potential lawsuits, and restatements in the future. The following guidance will help you…

Many employees have chosen to postpone using their allotted paid time off until pandemic-related safety concerns subside and COVID-19 restrictions are lifted. As a result, certain employers have seen an increase in accruals. The following guidance can help you evaluate if your company is required to report a liability for “compensated absences”—and how to estimate…

Estate planning isn’t only concerned with what happens after you die—it’s also important to plan for how critical financial or medical decisions will be made if you can’t make them for yourself. With carefully designed powers of attorney for finances and health care, you can designate a trusted person to make medical and financial decisions…

To help employees improve their skills and gain additional knowledge, many businesses provide education fringe benefits. Employees can receive up to $5,250 from their employer for educational assistance each year on a tax-free basis under a “qualified educational assistance program”. For these purposes, “education” is defined as any form of instruction or training that develops…

As many incorporated business owners know, corporations can deduct salaries and bonuses paid to executives, but not dividend payments. Because of this, funds paid as dividends are taxed twice, both to the corporation and to the recipient, while money paid out as compensation is only taxed to the employee receiving the compensation. As such, it’s…