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 […]

Tax planning for small business excise tax penalties under IRC 4980D

Posted 2 CommentsPosted in Employee Benefits, Small Business, Taxes

Tax professionals are looking for the best way to approach clients in this environment of uncertainty surrounding new excise taxes for small business health plans. The excise tax affects two types of plans: 1) those that use individual health insurance, and 2) those that reimburse employee out-of-pocket expenses (often called an “HRA”). Those who say […]

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 […]

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 […]

Financial Planning Considerations When Your Business is Losing Money

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

This post was inspired by the stories of some of my neighbors and clients in southern New Jersey. Most were struggling with  a weak economy before super storm Sandy hit in late 2012. Those that re-opened over the next few years face continued business losses and the prospect of continued weakening of the local economy […]

Fixed Asset Accounts in QuickBooks Online

Posted Leave a commentPosted in Accounting, Small Business, Tax Planning

Here is something I learned about the conversion of fixed asset accounts (like machinery or vehicles) from QuickBooks desktop to QuickBooks Online. (While I am a QuickBooks Online ProAdvisor and currently in the middle of studying for advanced certification, many new issues come up on a daily basis that are not obvious or well-documented. This […]