2018 Changes to Employee Benefit Plans

Posted Leave a commentPosted in Employee Benefits, Taxes

This article lists the primary changes triggered by the Tax Cuts and Jobs Act that have an impact on employee benefit plans. They are listed here roughly in the order of impact on small business employers. For example, health benefits changes and work-related travel change impacts most businesses ,whereas compensation above $1 million affects fewer […]

More Q&As on the Qualified Small Employer Health Reimbursement Arrangement (QSERHA)

Posted Leave a commentPosted in Employee Benefits, Health Insurance, Small Business

I normally offer a free mini-consultation by telephone for prospective clients1. This allows us to get to know each other, prove that value provided will exceed the costs incurred, and lower risks of misunderstanding and miscommunication. But this week I had trouble connecting with a small business owner in California so we agreed to a […]

Sample deferred compensation plan

Posted Leave a commentPosted in Employee Benefits, nonprofit, Tax Planning

Following is an annotated copy of the model truck language for a deferred compensation plan under  Rev. Proc. 92-64. TRUST UNDER ____ PLAN OPTIONAL (a) THIS AGREEMENT MADE THIS ___ DAY OF ___, BY AND BETWEEN ____ (COMPANY) AND ____ (TRUSTEE); OPTIONAL (b) WHEREAS, COMPANY HAS ADOPTED THE NONQUALIFIED DEFERRED COMPENSATION PLAN(S) AS LISTED IN […]

2018: The year for a Health Reimbursement Arrangement (HRA)

Posted 1 CommentPosted in Accounting, Affordable Care Act, Employee Benefits

Summary: Small businesses with middle-income employees may use a Health Reimbursement Arrangement t(HRA) o help cover out-of-pocket medical costs or individual insurance premiums as one of the easiest ways to cut 2018 taxes at minimal administrative and setup cost. The Tax Cuts and Jobs Act increases the incentive for middle-income workers to look for alternate ways […]

Unreimbursed partnership expenses revisited

Posted Leave a commentPosted in Accounting, Employee Benefits, Law firm, Small Business, Tax Planning

The Tax Cuts and Jobs Act triggers changes to the tax treatment of unreimbursed partnership expenses for 2018. Partnerships should revisit their policies to ensure that partners and employees maximize tax savings under the new law. Under former law a partner could deduct the expenses of the partnership on his or her individual income tax […]

Home office deduction for employees in 2018

Posted Leave a commentPosted in Employee Benefits, Tax Planning

The Tax Cuts and Jobs Act now in effect for 2018 no longer allows for employee1 home office deductions. This is a significant tax change that, according to the IRS, adds up to billion lost deductions, and increased taxes for over ten million taxpayers. The complete elimination of deduction of employee business expenses is one of […]

Overview of post-ACA federal health insurance law affecting small businesses

Posted 1 CommentPosted in Affordable Care Act, Employee Benefits, Small Business

After the sweeping changes brought by the Affordable Care Act of 2010 that were phased in over the following several years, these federal actions then further molded small business health benefit plans: IRS Notice 2013-54 – restrictions on employer health care reimbursements not coordinated with ACA insurance plans. IRS Notice 2015-17 – restricts an employer […]

The latest on small business health plans

Posted Leave a commentPosted in Affordable Care Act, Employee Benefits, Health Insurance, Small Business

With all of the tax hubbub lately small business owners and their advisors have had a tough time keeping up with all of the changes. Small business health plans have evolved through a rapid succession of changes over the past year and a half. Yet relatively few employers have taken the time to sort through […]

Small business employee benefits under the Tax Cut and Jobs Act

Posted Leave a commentPosted in Employee Benefits, Small Business, Tax Planning

This is the one version of an opening to a group of articles that I am preparing for specific industry or professional groups in my area of concentration: small business employee benefits planning. This version is for CPAs but other versions of the article will be appropriate for small business audiences. In the final weeks […]

Top 7 EASY Tax Saving Strategies for 2018

Posted Leave a commentPosted in Employee Benefits, Tax Planning

The Tax Cuts and Jobs Act of 2017 brought many changes and new opportunities to legally cut the amount of tax that we pay. Just as before, the largest savings are available to those who take deliberate tax saving actions designed to arrange their financial and legal affairs to lower taxes. The tax planning strategies considered […]