Your business can set up an educational assistance plan that can give each eligible employee up to $5,250 in annual federal-income-tax-free and federal-payroll-tax-free benefits. These tax-favored plans are called Section 127 plans after the tax code section that allows them. Plan basics Sec. 127 plans can cover the cost of almost anything that constitutes education, including … Continue reading “An education plan can pay off for your employees — and your business”
Month: April 2025
EBHRAs: A flexible health benefits choice for businesses
Today’s companies have several kinds of tax-advantaged accounts or arrangements they can sponsor to help employees pay eligible medical expenses. One of them is a Health Reimbursement Arrangement (HRA). Under an HRA, your business sets up and wholly funds a plan that reimburses participants for qualified medical expenses of your choosing. (To be clear, employees can’t … Continue reading “EBHRAs: A flexible health benefits choice for businesses”
Turn a summer job into tax savings: Hire your child and reap the rewards
With summer fast approaching, you might be considering hiring young people at your small business. If your children are also looking to earn some extra money, why not put them on the payroll? This move can help you save on family income and payroll taxes, making it a win-win situation for everyone! Here are three … Continue reading “Turn a summer job into tax savings: Hire your child and reap the rewards”
Mastering a Clean General Ledger: 5 Key Steps
The general ledger is the primary entry point for all of your business’s financial data. As it tracks your assets, equity, liability, revenue, and expenses, the general ledger is the foundation of your business’s accounting and your ability to make data-driven leadership decisions. Any issues or inaccuracies in your general ledger can throw off all … Continue reading “Mastering a Clean General Ledger: 5 Key Steps”
Businesses considering incorporation should beware of the reasonable compensation conundrum
Small to midsize businesses have valid reasons for incorporating, not the least of which is putting that cool “Inc.” at the end of their names. Other reasons include separating owners’ personal assets from their business liabilities and offering stock options as an employee incentive. If you’re considering incorporation for your company, however, it’s essential to … Continue reading “Businesses considering incorporation should beware of the reasonable compensation conundrum”
3 Reasons to Offer Comprehensive Retirement Plans to Your Employees
Small and medium-sized business owners are often forced to wear multiple hats as they strive to balance their priorities and maintain daily operations. One aspect of business employers shouldn’t inadvertently overlook is exploring ways to offer comprehensive employee retirement plans. Offering retirement plans is an important modern business strategy and is beneficial for both employer … Continue reading “3 Reasons to Offer Comprehensive Retirement Plans to Your Employees”
Are you a tax-favored real estate professional?
For federal income tax purposes, the general rule is that rental real estate losses are passive activity losses (PALs). An individual taxpayer can generally deduct PALs only to the extent of passive income from other sources, if any. For example, if you have positive taxable income from other rental properties, that generally counts as passive … Continue reading “Are you a tax-favored real estate professional?”