Author: Tony Novak
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Small Business HRA for 2017
Note added after first publication: The deadline for starting a HRA for retroactive tax treatment is March 30, 2017. HRAs can be started any time for expenses in the future. The most significant tax change affecting small businesses in 2017 is the liberalization of certain types of Health Reimbursement Arrangements (HRA) under the American Cures Act enacted in December 2016.…
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Our plans to widen the US wealth gap
The United States is an amazingly rich nation. Our net worth of about one hundred trillion dollars works out to about $300,000 for every person across the country. Of course we know that wealth is not distributed evenly like this. Most of that wealth is held by a few people. Half of our nation’s wealth is controlled…
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Health care planning for small businesses: 2017
This commentary is based on the February 10 draft outline of the Republican health plan that has not yet been presented to Congress. Of course we expect details to evolve. For fast immediate solutions during the transition period, see my post “Alternatives to Obamacare“. If you operate a small business then proposed changes to health care legislation…
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America first is still a dumb idea
This cartoon by Chad Crowe ran in The Wall Street Journal this week with an editorial that said that business leaders know that “America first” is the wrong approach but that they are being politely silent for fear of upsetting the administration. It’s been an obvious economic truth to me, and I do not have any…
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Alternatives to Obamacare
What are consumers doing right now? I had a great telephone conversation with an experienced health insurance executive today. We talked about the hottest topic in the insurance industry: consumer alternatives to Obamacare. I mentioned that I’ve noticed increased consumer demand for products like Core Health Insurance that do not meet Obamacare standards. We discussed that:…
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Vanguard makes investment decisions easy
I used to make a living as a Registered Investment Adviser and worked with Vanguard Group and other investment management firms. Now I provide generic standardized advice on investments when appropriate in the course of other accounting and financial planning services. My work now does not require a separate government registration as an investment adviser. Why…
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Missing the Meaning of Trump (WSJ editorial)
This editorial published Tuesday titled “Missing the Meaning of Trump” is the most persuasive piece I’ve read in a long while. The author, Holman W. Jenkins Jr. (57) is a member of the Wall Street Journal Editorial Board who grew up in Swarthmore, Pennsylvania (near me). Notable excerpts: “the Donald Trump show is likely to remain,…
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Petty Pennsylvania tax penalty
Tax professionals seem to love sharing bizarre stories of the trade especially when the taxpayer or the government acts in some silly manner. I am no exception. Recently I settled a multi-year complex tax problem for a small business client in Pennsylvania. I figured that, as happened in this case, if I can negotiate a…
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Add impact to ‘Not My President’s Day’
Resolve today to take a strong personal stance to avoid paying federal income taxes. Just make sure to do it safely and legally! On this historic “Not My President’s Day” I am reminded that civil protest has its limitations. Don’t get me wrong; I strongly support and encourage civil protest. Consider the old folk song “Charlie…
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Save money on small business payroll processing by removing bundled fees
A no-load approach to small business payroll In the “old days”, small business payroll services were priced based on a formula that was a bit complex. Factors like frequency of payroll, number of employees, type of pay, benefits, and local taxes all factored into the cost. Year-end ad ancillary services were typically priced separately. To me,…