Category: Small Business
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Health care law changes the way we look at personal financial security
February 1, 2016 marked a milestone in the field of tax and financial planning for middle income Americans. The way that we will look at our health care planning and financial liabilities begins to shift today and perhaps forever. Yesterday the open enrollment season for the Obamacare health insurance exchanges closed leaving about 1 in…
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Who is responsible when the payroll service screws up?
A new legal case might give some insight to responsibility for compliance with the maze of federal, state and local laws controlling electronic banking and payroll transactions Most small businesses that pay employees or contractors use a third-party payroll accounting service to handle the required record-keeping and tax payment transactions. These services are inexpensive, typically…
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Eight common financial mistakes in a divorce
The names in these examples are not real but are used to reinforce the point that the stories are taken from real life divorce. The examples were originally developed for use in study materials for an adult education program in financial planning at Delaware Valley University in the early 1990s. Over the years I have…
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How to change the tax reporting of employer health insurance payments
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…
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Employer health insurance payments are not wages
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…
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Still have W2s and 1099s to file?
Today is the day that your 2015 W2 and 1099 forms should be in the mail. This year (2015) the IRS penalties for non-filers is increased. For most small businesses this has become an automated online accounting service that hardly requires any additional effort. If you are reading this and still haven’t met this requirement,…
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20 Rules for Operating a Health Reimbursement Arrangement (HRA)
Update for 2018: Please see “2018: The year for a Health Reimbursement Arrangement (HRA)” Update December 10, 2017: I published an annotated copy of IRS proposed regulations for Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) that should be followed with 2018 QSEHRAs. It makes sense to view this as an additional option and not a replacement…
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More on health insurance without a social security number
Despite the convincing documentation that the federal government has produced – these sources that I cite over and over in my publications – a woman tonight insisted that health insurance companies require a social security number to enroll. Of course I can’t speak for every insurance company under every circumstance. But I can say that…
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Employers may be liable for uninsured Obamacare expenses
Is your small business at risk for failure to notify employees of health coverage options? The Affordable Care Act (ACA) became law in 2010 eventually became synonymous with the term “Obamacare”. The law brought so many changes to individuals, employers, health insurance companies and health care providers that it wouldn’t even be practical to attempt to summarize…
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How to maximize tax savings for business owners
This post is based on a consultation I had today that echos a very common business planning theme: A successful small business owner wishes to begin a retirement savings plan to make the most efficient use of the business’ profits. The goals are simple: Maximize the owner’s account contribution, Maximize tax savings (avoid current income taxation),…