Mobile scanning apps for taxes and accounting

Posted Leave a commentPosted in Accounting, Computers and Internet, Taxes

If you want to handle taxes or accounting on your smartphone or tablet, you need a mobile scanning app installed on your device. The two most popular apps that are completely free, have no premium upgrade option, include optical character recognition, and are available on all cell phone and tablet computer platforms are: Office Lens […]

How to help employees pay for individual health insurance

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

Small business employers often help employees afford the cost of individual health insurance rather than enroll employees in the company’s own health insurance policy. This is often the least expensive way to ensure that employees find the best coverage at the lowest price. For employees this employer involvement is often the best way  – sometimes the […]

What to do if your W-2 includes taxable health benefits

Posted 1 CommentPosted in Accounting, Employee Benefits, Small Business, Taxes

Summary: Employer-paid health benefits included as W-2 taxable wages is an accounting error that appears to flourish this year due to misinterpretation of tax laws surrounding the Affordable Care Act by small business accountants. The error financially hurts employees by overstating tax liability and reducing eligibility for various tax credits. Fix the error by talking to […]

Reviewing income tax returns for accuracy and opportunity

Posted Leave a commentPosted in Accounting, Taxes

Reviewing income tax returns for accuracy is valuable because it can avoid processing delays, prevent errors that would cause audits and trigger penalties. There is a second potentially more valuable reason to review a tax return. and uncover opportunities for tax planning to reduce tax burdens in the future. Many accountants, including myself, offer a […]

How to change the tax reporting of employer health insurance payments

Posted Leave a commentPosted in Employee Benefits, Small Business, Taxes

There is a ‘wrong way’ and a ‘right way’ to report a change in employee health insurance payments to avoid payroll tax liability problems Case 1: The wrong way to change employer reporting of health insurance Tom works for ABC Inc. at a salary of $50,000. ABC has no health insurance plan but agreed to reimburse […]

Employer health insurance payments are not wages

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

Employer-paid health insurance may not be included in employee wages. Doing so, even in error, does not alleviate the employer from possible excise taxes under ACA. This errant accounting practice also creates additional employer tax penalty liabilities for improper reporting of wages. This afternoon I attended a continuing professional education webinar where a fabulous tax expert […]

Explaining the Health Insurance Penalty

Posted Leave a commentPosted in Accounting, Health Insurance, Taxes

Accountants and tax preparers complain that they have been put in the position of enforcing the Affordable Care Act’s insurance mandate without compensation or training as health insurance agents. They are absolutely correct and this system has produced in some bizarre results. This was illustrated when one accountant wrote to me “I have clients that […]