Common Small-Business Tax Snafus – Employees Versus Contractors One the biggest trouble issues facing new and small businesses is that of employees and independent contractors. It’s cheaper and easier to deal with contractors: you can hire them only as needed, they don’t get benefits, you don’t have to report or pay their payroll taxes, and … Read more
Common Small-Business Tax Snafus – Don’t Be Afraid of the IRS Most people, upon getting any kind of notice from the IRS, immediately feel fear and panic. The horror stories are out there: individuals and companies that were audited and left bankrupt after a grueling investigation that ended with a giant tax, interest, and penalty … Read more
Retirement Plans – Accounting for Contributions Regardless of which type of retirement plan you have, the accounting looks the same. The main difference in your journal entries is between contributions made for you (as the owner, not as an employee of a corporation) or for your employees. Here’s what the entries for company contributions look … Read more
Retirement Plans – Choosing the Right Plan for You The first thing to consider when you are trying to choose a retirement plan for your business is yourself—your financial situation, your goals, your age. After all, this is your company, and you deserve to reap financial benefits. Ask yourself why (despite the administrative and fee-oriented … Read more
Retirement Plans – Keogh Plans As long as your business isn’t incorporated, you can establish a Keogh plan for retirement savings. These plans let you put away more money than either SEPs or SIMPLEs, and they’re also much more flexible; for example, these give the option of either defined benefit or defined contribution, while the … Read more
Retirement Plans – Simplified Employee Pensions (SEPs) When it comes to simple plans, SEPs also fill the bill. These plans were especially designed for small-business owners, with the goal of making it as pain-free as possible for them to offer retirement benefits. In fact, the only IRS form you have to fill out is Form … Read more
Retirement Plans – SIMPLE Plans The name says it all (or at least the acronym does): The Savings Incentive Match Plan for Employees, a.k.a. SIMPLE, is usually easier to manage and easier on the bank account than are many other types of retirement plans. Their drawback is that contributions are limited, and you may not … Read more
Retirement Plans – Individual Retirement Accounts (IRAs) For decades, IRAs have been among the most popular ways to put away money for retirement while getting a current tax deduction. You also don’t have to pay any current income taxes on any money the account earns— until you start taking distributions, that is, and then you … Read more
Retirement Plans – The Best Tax Shelter If you want to minimize your income taxes while maximizing your wealth, consider starting a company retirement plan. Not only will you be able to attract and keep better employees; you’ll also be able to use the plan for your own tax-sheltered retirement savings. Even better, there are … Read more
Unique Issues for Specific Businesses – Building-Construction Transactions As anyone who’s ever been a contractor or hired one knows, construction jobs take some time to complete. Since these jobs can run so long (months, even years), they sometimes call for some special accounting procedures. When a project won’t be completed during the accounting year in … Read more
