Clear explanation that there are no “1099 employees”

Posted 1 CommentPosted in 401(k), Accounting, Employee Benefits, Small Business, Taxes

I like this clear simple language in Employee Benefit News: “Employers face an uphill battle in classifying a worker as an independent contractor due to DOL guidance that defines ‘employee’ so broadly that such a classification should only be reserved for a narrow subset of workers.” It is amazing how many employers are oblivious of […]

Most workers are employees

Posted 1 CommentPosted in Accounting, Employee Benefits, Taxes

The issue of worker misclassification – where businesses classify workers as independent contractors and local, state and federal authorities call them employees –  is a long-standing problem area for small businesses. Federal and state auditors (not just tax but worker’s compensation as well) have been engaged in an aggressive “crackdown” on misclassified workers. This week […]

Fixing the problems of financial do-it-yourselfers

Posted Leave a commentPosted in Accounting, Financial Planning, Small Business, Taxes

New Jersey financial adviser Michael Kay wrote in yesterday’s Wall Street Journal “Do-it-yourselfers often approach advisers as a last resort when they have an especially complex or urgent financial issue, and advisers should proceed carefully with this type of client.” Since the launch of my own practice six months ago, I notice that a high […]

First case of fraud in small business accounting

Posted Leave a commentPosted in Accounting, Small Business

I’m dealing with my first case of likely fraud in a small business client’s bookkeeping. It apparently stems from the actions of an incompetent or inattentive bookkeeper and an overly trusting business owner. I should not be surprised knowing that $2 out of every $100 passing through the US economy is based on fraud of […]

How much does payroll service cost for a very small business?

Posted 3 CommentsPosted in Accounting, Small Business

How much does payroll service cost for a very small business? This is a simple question without a simple answer. As we might suspect, the answer is wrapped up in the details. 1. Service contract – Who pays penalties for screw-ups and responding to an audit? How reliable is the provider’s assurance? Keep in mind that a […]

“CPA is too expensive” says this woman

Posted Leave a commentPosted in Accounting, Taxes

but ignorance is priceless! A professional tax preparer shared this hilarious story: A single woman with a salaried position was looking for help with her “simple” tax return. She also has a side business as an artist. The art work generates minimal income but much larger tax deductions that resulted in losses of at least […]

Lessons to be learned from Manco and Manco tax evasion case

Posted Leave a commentPosted in Accounting, Small Business, Taxes

Philadelphia area newspapers have been following a high-profile tax evasion prosecution of the owners of South Jersey’s most successful pizza shops. The owners of Manco and Manco pizza are accused of failing to report almost a million dollars of cash receipts over a period of years. I have no intent to comment on the details of […]

Sales tax on interstate accounting services

Posted Leave a commentPosted in Accounting, News and Politics, Small Business, Taxes

The Democrat-led Finance Committee of the Connecticut General Assembly voted yesterday (4/29/2015) to expand its state sales tax to include accounting services. The Senate President Pro Tem said that he supports the changes but there appears to be opposition to the move beyond that. Three states currently tax professional services: New Mexico, Hawaii and South […]