Category: Small Business
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How secure is Dropbox, Google Drive, OneDrive and iCloud?
Editing note: This blog post was first published in August 2015 and updated in September 2016. The concern about hackers is always present but there have been no major data breaches reported for any of these covered services since the date of original publication of the blog post. Meanwhile, data security technology has evolved rapidly over the…
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Clear explanation that there are no “1099 employees”
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…
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Tax planning for small business excise tax penalties under IRC 4980D
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…
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Fixing the problems of financial do-it-yourselfers
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…
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First case of fraud in small business accounting
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…
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How much does payroll service cost for a very 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…
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Lessons to be learned from Manco and Manco tax evasion case
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…
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Sales tax on interstate accounting services
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…
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Who is your employee?
How to distinguish between employees and contractors and the risks of making an incorrect classification
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Financial Planning Considerations When Your Business is Losing Money
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…