Blogging Beyond the Numbers

One of the changes made to the tax laws by the Tax Cuts and Jobs Act (TCJA) was to disallow a tax deduction for qualified transportation fringe benefits businesses provide to their employees.  This nondeductible expense has been dubbed the “Parking Lot Tax”. Items subject to disallowance as a Qualified Transportation Fringe benefits (QTFs) include: Parking expensesCommuter vehicle transport...

Companies with large amounts of tax depreciation could be impacted greatly. Background and Basics of the Business Interest Deduction Limitation As part of the new tax law (Tax Cuts and Jobs Act), there is a new interest limitation for businesses with gross receipts greater than $25 million (*see more details of this limitation below). This was effective for tax years starting after December 31, 2017....

I’m a plan sponsor, now what? A retirement plan can be a great way to attract new employees and offer a benefit to existing employees, but it comes with certain responsibilities. If your company or organization sponsors a retirement plan, you have certain fiduciary responsibilities as the plan sponsor. But, let’s get to know ERISA first. The Employee Retirement Income Security Act of 1974 (ERIS...

As a company grows it more than likely will need to hire employees and pay those employees wages.  An employer that pays wages has a responsibility to pay payroll taxes and report those taxes to the IRS on quarterly and annual forms.  This post will look specifically at Federal Unemployment Tax (FUTA) taxes and ways businesses can attempt to reduce their future FUTA tax liability. Anyone who ...

On September 24, 2019, the Department of Labor (D.O.L.) issued a Final Rule that updates regulations related to wage and hour (i.e. overtime) rules.  Although these regulations were updated on December 2016, those 2016 changes were subsequently invalidated by a Federal court. The effective date of this new Final Rule is January 1, 2020.  What has changed, and what does this mean for employers...

Are you a small employer and wondering if you can provide your employees with a standalone health reimbursement plan which is compliant with the Affordable Care Act (ACA)? A Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) may be the answer. What is a QSEHRA? A QSEHRA is a health reimbursement plan for businesses with less than 50 full-time equivalent employees.  Under a QSEHRA ...

Has your business invested in any capital assets in 2019, or are you considering adding any depreciable assets in the current year? The good news is the Section 179 depreciation deduction for business property is back for 2019 as an effective tax savings strategy. The election has long provided a tax windfall to businesses, enabling them to claim immediate deductions for qualified assets, instead of taking...

Institutional knowledge. What your staff knows is one of the most valuable intangible assets of every organization. It’s often taken for granted and losing it is costly, frustrating, and inefficient. The concept of business continuity is more than having a disaster recovery plan for natural disasters or technology failure. It should also include personnel transitions, which are much more common. How ...

After the stress of busy season, we sometimes forget in the heat of the summer that there are still important tax-related deadlines that occur. Below are some of the common deadlines that hit during the heart of the summer months (3rd quarter of 2019).  Businesses can face penalties and interest if they fail to file and meet these deadlines. July 31 Form 941 for the second quarter of 2019: You ...

It’s not just businesses that can deduct vehicle-related expenses. Individuals can also deduct them on their tax returns in certain circumstances. Unfortunately, the Tax Cuts and Jobs Act (TCJA) might reduce the deduction in comparison to what could have been claimed on prior years’ tax returns. For 2017, miles driven for business, moving, medical and charitable purposes were deductible depending on...