Hiring independent contractors can offer flexibility for growing businesses, but it also comes with important tax reporting responsibilities. In most cases, you aren’t required to withhold taxes from payments to contractors. However, there are situations in which the ”backup withholding” rules apply. Backup withholding is most commonly required when a contractor fails to provide a […]
An emergency fund is key to long-term financial security. Over time, changes in expenses, income, family needs and financial priorities can affect how much emergency savings you need. Regularly reviewing your reserves can help ensure they’re sufficient to support your lifestyle and broader financial strategy. How much is enough? Financial professionals have long recommended maintaining […]
When you’re not using your vacation home, renting it out can generate extra income. But it can also affect your taxes, depending on how often you rent and use the property personally. The 14-day rule In some situations, renting out a vacation home can generate tax-free rental income. If it’s rented for 14 or fewer […]
Offering employees retirement options can be an effective way for small business owners to attract and retain talent. If you’re concerned about cost and administrative complexity, you’re not alone. Fortunately, several options are available, including a Simplified Employee Pension (SEP) plan. Establishing a SEP plan You can set up a SEP plan for a given […]
When business owners think about risk, they often focus on market pressures or operational challenges. An IRS audit usually isn’t top of mind — but it can be costly, disruptive and time-consuming. Although some taxpayers are randomly selected for an audit, many audits occur because the IRS has identified certain patterns or inconsistencies. Understanding where […]
If your business is like many today, you’re seeking more ways to attract and retain talent. One option is to offer tax-advantaged educational assistance under Internal Revenue Code Section 127. Recent legislative changes have expanded the value of this benefit. How the plans work Employer-sponsored Sec. 127 educational assistance programs allow employees to receive tax-free […]