Updated 2020 Tax Planning Checklist for Small Business Owners

Posted Leave a commentPosted in Financial Planning, Tax Planning

Begin by forecasting 2020 taxes based on 2019 results – easy with today’s professional tax software Maximize tax-free pandemic relief payments Use a Health Reimbursement Arrangement (HRA) for tax-free payments Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) for insurance assistance Add a Health Savings Account (HSA) for long term health security Adapt an employer-sponsored Education […]

Preserving right of claim for 2016 tax returns

Posted Leave a commentPosted in Affordable Care Act, News and Politics, Tax Planning

The hottest topic in tax planning right now is the protection of right to claim a refund for 2016. It’s likely a hot of hot air about nothing. Beginning on 2016 wealthy people paid additional taxes mandated by the Affordable Care Act. If the Affordable Care Act is deemed unconstitutional, then theoretically the taxes it […]

Average New Jersey tax preparation fees in 2020

Posted Leave a commentPosted in Accounting, Self-employed, Small Business, Tax Planning, Taxes

These are the most recent published average industry prices for tax preparation services in the state of New Jersey as of the date of this blog post. These are not my rates, although I do pay attention to this type of published data when calculating my own pricing. Individual tax returns Most individuals who do […]

Still don’t have a financial plan?

Posted Leave a commentPosted in Financial Planning, Self-employed, Tax Planning

This blog post is a reprint and revision of an article originally posted in 2011. The current pandemic underscores that many people, including many of my small business owner clients, do not have access to any type of financial planning document to serve as a basis of strategy, communication and decision-making. I’ve recently decided to […]

Three simple steps to tax nirvana

Posted Leave a commentPosted in Financial Planning, Tax Planning, Taxes, Wealth Management

Taxes are perceived differently by each individual even though the overall set of chaotic rules is the same for all of us. Yet when it comes to dealing with that chaos in a manner that leads to peace and prosperity, the process always involves the same three steps: Resolve past problems. Old issues don’t go […]

Benefit of 401(k) tax credit for small business that start 401(k) plans

Posted Leave a commentPosted in 401(k), Retirement, Small Business, Tax Planning

My brother John Novak, a well established 401(k) expert, shared some calculations that he made for his own clients illustrating the impact of the SECURE act tax credit for small businesses that want to start a 401(k) plan. This is the first analysis of this type that I’ve seen using “real life” 401(k) plan fees […]

Update on Gig Workers

Posted Leave a commentPosted in News and Politics, Payroll, Small Business, Tax Planning

The evolving saga of “employee vs contractor”, from the small business employer’s perspective, means that you should  revisit the conversation for business planning purposes now. Background In case you’ve been so engrossed with other headlines that you haven’t read any business news: the world of independent contractors, so-called “gig workers” is facing rapid and dramatic […]

Fast paced change brings 2020 opportunities to small businesses

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

After some tweeking (thanks to my peers for the crowd-sourced feedback!) this is the version of the email message that will be used this week: Dear _ : This past year brought more changes for small business owners than any other year in the past generation. This means new opportunities to save money but also […]

Taxes for ministers: Summary of federal income tax planning issues

Posted Leave a commentPosted in Payroll, Self-employed, Tax Planning, Taxes

Planning the federal income tax treatment for ministers1 must consider several topics that are unique to ministers. Employee status A minister is considered an employee under the common law rules and yet payments for services as a minister are considered income from self employment pursuant to IRC §§ 1402(c ) and 3121(b)(8). This is the […]