Cash flow is a top concern for most businesses today. Cash flow forecasts can help you predict potential shortfalls and proactively address working capital gaps. They can also help avoid late payments, identify late-paying customers and find alternative sources of funding when cash is tight. To keep your company’s cash flow positive, consider applying these … Read More
The IRS has provided the inflation-adjusted maximum dollar amount that may be made available for excepted benefit Health Reimbursement Arrangements for the 2021 plan year beginning after Dec. 31, 2020, and before Jan. 1, 2022. For the 2021 plan year, this amount remains $1,800. An HRA is an arrangement that’s paid for by an employer … Read More
Typically, an estate plan includes accommodations for your spouse, children, grandchildren and even future generations. But you may overlook some older family members, such as your parents or in-laws. They may also need your financial assistance and help with their estate planning. How can you best handle the financial affairs of parents in the later … Read More
Certain IRS computers lack adequate security, a recent report said. After an examination of the tax agency’s mainframe computing environment, the Treasury Inspector General for Tax Administration (TIGTA) reported that improvement is needed. “The IRS mainframe platform is not satisfying minimum mainframe security requirements in several key areas,” it stated. TIGTA did confirm that access … Read More
As year-end draws near, many businesses will be not only be generating their fourth quarter financial statements, but also looking back on the entire year’s financials. And what a year it’s been. The COVID-19 pandemic and resulting economic fallout have likely affected your sales and expenses, and you’ve probably noticed the impact on both. However, … Read More
The IRS Whistleblower program gets another “sequestration reduction.” This program pays cash awards to individuals who provide specific or credible information to the IRS about unpaid taxes, if the information is used. For fiscal year 2021 (Oct. 1, 2020 through Sept. 30, 2021), those awards (along with other types of payments) will be reduced by … Read More
If your small business is planning for payroll next year, be aware that the “Social Security wage base” is increasing. The Social Security Administration recently announced that the maximum earnings subject to Social Security tax will increase from $137,700 in 2020 to $142,800 in 2021. For 2021, the FICA tax rate for both employers and … Read More
The Social Security (SS) wage base increases to $142,800 for 2021, up from $137,700. Wages and self-employment income above this threshold aren’t subject to SS tax. The Federal Insurance Contributions Act (FICA) imposes SS tax and a Medicare tax on employees, employers and the self-employed. There’s no threshold for Medicare tax; all wages and self-employment … Read More
People who owe unpaid taxes now have a new, easier way to make payments. As of Oct. 2020, the IRS has added Quick Response (QR) barcode technology to certain notices (Notices CP14 and CP14 IA) sent to 8 million taxpayers who owe taxes each year. They can now scan a QR code with a smartphone, … Read More
If you invest in mutual funds, be aware of some potential pitfalls involved in buying and selling shares. Surprise sales You may already have made taxable “sales” of part of your mutual fund investment without knowing it. One way this can happen is if your mutual fund allows you to write checks against your fund … Read More