Rising Cost of Health Insurance? Here’s How You Can Save

You have eventually sealed the deal with your prospective employee; however, they pop in one final question, “Do you have insurance?” Of course, it’s there, but it has been a pain for as long as you have been paying for the expenses. Maybe you have been considering lowering or even eliminating it. Catering for the welfare of your staff is as important as your productivity and profit generation. Look after them properly, and they are more productive. It is very hard escaping the obligation of managing your employee’s health coverage.

Why Get a Health Cover For Your Staff?

When health insurance is absent from your offer, what’s to stop a prospective employee from moving on to your competition? They offer a similar salary range and employee benefits, and their insurance is probably better. Providing health care coverage to your staff is the key to employee retention. Lack of it will expose you to high employee turnover and fewer hires for your small business. Small business medical insurance is one of the things that offer you a competitive advantage. The following are more reasons why you should go for medical insurance:

  • It is the law: Even if you are a small business, when you possess more than 50 employees, then you are legally obligated to provide your full-time employees with affordable health coverage.
  • Group coverage is better: A personal plan covers only you and your family, but with a group plan, you get some additional insurance advantages.
  • Tax benefits: You can enjoy some tax credits for your business when you have a health coverage for your staff. However, it is integral that you buy a plan via a Small Business Health Options Program Exchange. You can even write-off health insurance premiums as a business expense.
  • Improve your employee’s health: A health insurance plan encourages employees to get yearly checks, which means that they will be healthier and more productive.

Determining the best health insurance for your small firm is a cumbersome process. Many small businesses do not have an HR department to back you up, which means you are the eyes and ears everywhere. Comprehending how medical insurance works is the ultimate solution to eliminating your problem, and landing at the best insurance program for your employees. It can be a capital expense for your firm if you are not careful when choosing. How can you get the best medical insurance as well as cut down on the cost?

High-Deductible Mixed With Health Savings Account (HSA)

Such an approach motivates one to think about their costs at all times. With this, you can use your pretax employee money to cater for unpaid medical cost, and any unused funds are carried forward to the future. You have two options: either fund the account or request the employees to do so. HRA’s (Health Reimbursement Accounts) have high deductible insurance plans. The employer should reserve some money to facilitate the reimbursement of the employee deductibles. Staff can roll over any unused funds.

Buying Cooperatives

Small companies can massively save on their employee’s health insurance by increasing their bargaining power. How can they achieve this? These small businesses can join health-insurance cooperatives. Although the actual savings that a firm can make via joining these cooperatives vary, ultimately, the terms of the health coverage might be better than if the small firm went at it alone. Of course, insurance rates in the open market depend on underwriting laws in your state as well as other factors. Nevertheless, you are guaranteed of getting some extras that you would have paid for even if the insurance were not discounted.

Organization Wellness Program

There are very many initiatives that you can start to ensure that your employees maintain a proper wellness culture. You can offer them a gym membership, free screenings and so much more. Such a program can aid your firm in keeping the health insurance cost at a minimum via promoting better health awareness, as they take better care of themselves.

Write It Off As A Business Expense

Any firm that takes a groups health cover for its employees can claim these as business expenses when they are filing their taxes. How does it work? You might need the services of a CPA for perfect accounting of these expenses; however, it is basic.

Disease Management

The main aim of a disease management program is to cut down the effects of a disease that can be a chronic illness or any other condition via continuous screening. When you have an employee that gets extended stay at the hospital will expose you to huge expenses that will be a huge burden for your small organization. This is even harder when your resources are limited. When you offer your employees some personalized, preventive care, you prevent such an expense via proper disease management.

Entirely comprehending medical insurance is complicated. In fact, there are very many insurance firms that have tweaked plans; however, the expense to your firm will be unmanageable if you don’t tread carefully. You cannot afford to miss one, hence figure out a way to lessen the impact on your returns.

How To Save Money Starting Your Own Business

Starting your own business is an exciting time in your professional career. One of the most important things to do in the early days of your business is to save money. Here are some ways you can save money on your own business:

1. Work Out Of A Spare Room

Working from home is the number one cost saver. Ideally, if you can convert a room or garage into an office, then you will be able to deduct a portion of your home as an essential part of your business. Of course, this also saves time too since commuting involves heading to your office. Additionally, everything you use to decorate this space becomes a business expense. Overhead lighting, desks, file cabinets, computers, even a portion of your internet bill. When finding business expenses, spare no expense and fill your office with all the tools and technology you need to run your business effectively.

Of course, if customers or clients will be visiting your place of business, then you may want to consider an office outside of the main house. Choosing a location such as a remodeled garage, basement or garden office with a separate entrance may be less disruptive to your family — this is especially important for teachers and tutors who expect regular visitors. If that’s not an option, you can always meet a mutual location for clients and then — guess what — that meal or golf session becomes a write off.

2. Buy Used Equipment

One of your biggest expenses is your equipment. The advantage of purchasing used equipment is it prevents you from overspending on equipment that you ultimately do not use. What’s more, chances are your equipment — no matter how new — will be outdated and it’ll become another expense next year.

Saving money on older models of any technology will really help your wallet. Of course, we’re not saying purchase an archaic system, as you don’t want to decrease productivity with a slow machine. Instead, create a checklist for everything you may need. Then visit yard sales, as well as used technology stores (or go online) for items you may need.

3. Watch Video Instruction

There is a plethora of free video instruction by online professionals. You can find experts who aptly demonstrate each step of building your business. Need a website — the best, passive lead generation tools — then follow a how-to on YouTube.

Need a logo? Check out Fiverr. Business cards? Of course there’s Vistaprint.

There are plenty of experts who can teach you how to code or master photoshop or manage an app. These online experts can save you money and teach you skills that you need for your business, especially if you want your business to grow. Eventually, you may want to hire an expert for advanced work, but for now, learn the basics and get the job done.

Speaking of hiring however…

4. Hire Contract Workers

When you are first starting your own business, you have to wear a lot of hats including product producer, marketer and payroll specialist. Eventually, you’ll have to relinquish some of those tasks because you prefer to focus on what you are more interested in working on. That, or you’ll need an experienced person to handle a challenging project.

Before hiring out full time employees, save your some money and utilize contract workers. Contract workers can actually live in your area and come into your work environment. Another option is to hire someone to work on a project virtually. There are many online sources where you can hire out contract employees to take care of graphics, payroll or other tasks.

 

5. Free Software & Apps

There is a cornucopia of software and apps that can jump-start your business and preserve the bottom line — this isn’t even considering the freemium tools out there as almost all apps offer deluxe versions that can give you all of the app’s high tech goodies. The benefit of the free software is you can see how often you use it and if it’s worth investing in the full price.

The types of free software and apps can run the gamut of your business needs including: social media scheduling, payroll processing or team communications. For images there are photo editing software as well as software for logos, infographics, and animations or video. There are even free business form templates and apps for online note taking.

As your business grows, you will want to take advantage of analytics to help discover what’s working for your business and what’s not. This way you can increase your efficiency.

Tax Breaks To Help You Save

Tax season is upon us again, and for most people, that means trying to find ways to save as much money as you possibly can. There are many ways that you can take advantage of the tax breaks the federal government offers; often, it’s simply a matter of knowing what those tax breaks are. While you are probably aware of some of the better known deductions – travel expenses, for example – others are not as widely known and can be just as advantageous for both individuals and small businesses. Here are a few lesser known tax breaks to help you save a pretty penny this tax season:

Going Green

Did you make any upgrades to your home this year? If so, did you take advantage of modern, energy-saving technology? If you did, you may be eligible for a tax break. For example, if you had energy efficient windows installed, this could mean a tax break of up to a few hundred dollars. Similarly, if you had a new and more energy-efficient furnace installed, you could be eligible to knock a few hundred more off of your taxes. If you’re an individual filing your taxes, take a look at part two of Form 5695 and see if you qualify for the Nonbusiness Energy Property Credit.

Job Hunting

If you found yourself seeking a new job this year, you may be able to claim some credits related to your job hunting expenses. While there are very specific rules related to whether you can claim any tax breaks from your job hunt, it’s worth looking into. If you are looking for new employment in your current field, make sure to keep detailed records of everything you have to spend.

For example, any fees you incur for resume preparation, or for employment agencies, are potentially deductible if they exceed 2 percent of your adjusted gross income. This is certainly possible if you are not working much; just make sure to keep a detailed record of all costs related to job-hunting expenses. This includes everything from gas mileage for driving to interviews to printing paper for resumes.

Education

Even if you graduated college a long time ago, you might just be eligible for further tax breaks if you are looking to continue your education. Whether that means signing up for one night class, or going back to class full time to earn an advanced degree, you can often write off up to $2,000 per year. This does depend on how much you have spent on further studies, and it also depends on your income, but is worth looking into as your age does not matter.

Child Care Costs

If you have children, there are a few lesser-known tax breaks you can take advantage of. For example, if you do charitable work and need to hire a babysitter while you’re doing it, you can deduct the cost of that babysitter. While you may be aware that you can deduct day-care fees while you’re working during the school year, did you know you can also deduct the cost of summer day camps once school has ended? As with all the other items on this list, just make sure to keep a detailed record of everything.

Medical Care

Deducting the cost of medical care can get complicated, as what deductions you can make varies widely depending on the work you do and the medical insurance you make use of. For example, if you are self-employed, you can usually deduct 100 percent of your health insurance costs. If you are not self employed, you will need to reach the AGI threshold in order to begin deducting itemized health care costs. This is easier to do if you make sure to keep track of miscellaneous costs such as mileage when traveling to doctor’s appointments.

What Does An Accountant Do With Taxes?

Accountant's desk riddled with forms, calculator, glasses and a sticky note saying tax time

Tax laws are constantly changing and quite frankly trying to keep up with all of these changes can be a complex tax. Tax accountants help companies and also individuals make sure they remain in alignment with tax laws by making sure they file their federal and state income returns. In fact, some tax accountants are even willing to offer tax planning advice to help businesses save more money in taxes.

While this may not be the path that all accountants choose to take it’s important to know that there is still some value in hiring a tax accountant because the wide array of services they tend to offer businesses both large and small.

Tax Return Preparation

Do you find yourself often dreading tax return season? That’s one of the great assets of having a tax accountant. Tax accountants primary responsibility is to meet with clients to help them assess their financial needs. This includes but is not limited to gathering needed documentation, such as pay stubs, investment income statements and other financial documents.

Tax Planning

Every corporate business decision leads to tax ramifications, which is complex in general. Companies who typically do business outside of the United States typically experience complexities much more than other businesses do. In most cases, this leads could lead to a growing need for tax professionals.  

Many tax accountants choose to specialize in tax planning because it helps them develop strategy around their client’s financial situation to minimize income tax. Most companies hire internal and external tax accountants to help them develop long term plans that will ultimately help them save money.

Real Estate or Taxable Investment Dealings

Do you own a rental property? If you do it will be in your best interest to hire a tax accountant. Owning a rental company creates a lot of special tax situations that you’ll want to be sure you are taking advantage of and making sure you aren’t making any mistakes.

The same thoughts can also apply when you are buying and selling a home in addition to other real estate. While these laws are straightforward, it’s important to make sure you are doing things properly.

Help You File Your Taxes

For obvious reasons a tax accountant can help you file your taxes. This does not mean that you shouldn’t know what’s going on with your personal and business taxes.; however, it does mean that you must be willing to admit that you need some additional help as it relates to filing your taxes.

You Don’t Have To Do It On Your Own

It doesn’t matter how long you have been in business, it’s important for you to remember that you don’t have to do everything on your own. When necessary and possible make sure you are delegating anything that you aren’t able to do on your own.  By having someone help you with your taxes along the way you are insuring your businesses success even before the success comes. There is also a great deal of methodology around the idea that says that you shouldn’t wait until you need help to implore the help of a professional.

What Tax Documents Should You Bring To Your Accountant?

Man running from a tidal wave of tax documents

If you are anything like most people and specifically business owners, the idea of having to even do your taxes can be incredibly stressful. In most cases it’s because many are afraid that they don’t know what they are doing and may make numerous errors and in most cases these people are probably right. Not everyone should be managing their own accounting needs especially as a business owner. Because of this many must consider hiring an accountant and if they do here are just a few things you should bring with you.

Your Social Security Card

This is probably unnecessary if you have used the same accountant year after year; however, if the accountant you are meeting with is new you’ll want to make sure you bring in your social security card for identification purposes. Your accountant will want to verify the spelling of your name and bringing your social security card will help with that. You will also want to bring the insurance cards for your spouse and dependents as well. If for some reason you don’t have access to your social security card, it might be worth stopping by your local Social Security Administration Office in order to get a replacement card.

Income Related Documents

Depending on what kind of worker you are you will want to make sure you are bringing in plenty of income related documents. A list  of these documents include but are not limited to:

  • Form W-2 (wage and salary income)
  • Form W-2G (gambling winnings)
  • Form 1099-A (foreclosure of a home)
  • Form 1099-B (sales of stock, bonds, or other invest-ments)
  • Form 1099-C (canceled debts)
  • Form 1099-DIV (dividends)
  • Form 1099-G (state tax refunds and unemployment compensation)
  • Form 1099-INT (interest income)
  • Form 1099-K (business or rental income processed by third-party networks)
  • Form 1099-LTC (benefits received from a long-term care policy)
  • Form 1099-MISC (self-employment and other various types of income)
  • Form 1099-OID (original issue discount on bonds)
  • Form 1099-PATR (patronage dividends)
  • Form 1099-Q (distributions from an education savings plan)
  • Form 1099-QA (distributions from an ABLE account)
  • Form 1099-R (distributions from individual retirement ac-counts, 401(k) plans, and other types of retirement savings plans)
  • Form 1099-S (proceeds from the sale of real estate)
  • Form 1099-SA (distributions from health savings accounts)
  • Form SSA-1099 (Social Security benefits)
  • Form RRB-1099 (Railroad retirement benefits)
  • Schedule K-1 (income from partnerships, S corporations, estates, or trusts)

Expense-Related Documents

  • Form 1097-BTC (bond tax credit)
  • Form 1098 (mortgage interest)
  • Form 1098-C (charitable contribution of vehicles)
  • Form 1098-E (student loan interest)
  • Form 1098-MA (homeowner mortgage payments)
  • Form 1098-T (tuition for higher education)
  • Business expenses (summarized by type and amount)
  • Child care expenses (summarized by provider and amount)
  • Gambling losses
  • Medical expenses
  • Moving expenses
  • Personal property tax, such as car registration paid
  • Real estate tax bills
  • Realized gain/loss report for any stocks, bonds, mutual funds and other capital investments sold during the year
  • Receipts or acknowledgment letters for gifts to charity
  • Rental expenses (summarized by property, type, and amount)

What If I’m Missing a Document?

If you’re missing a document, you can ask your employer to give you a new copy. If you’re missing 1099 contact your client.

Do Self Employers Have To Pay Quarterly Taxes?

A self employed person filling out paperwork with CPA for quarterly taxes

Before one can truly answer the question about do you have to pay quarterly taxes as a small business you must understand what is identified as a self employer. According to the IRS the following things must apply to you:

  • You carry on a trade or business as a sole proprietor or an independent contractor.
  • You are a member of a partnership that carries on a trade or business.
  • You are otherwise in business for yourself (including a part-time business)

What Obligations Do Self Employers Have?

As someone who is self-employed it is often times required that you file an annual return and also pay a tax quarterly fee that is estimated.

Under federal law, the self employed must pay what is referred to as an SE tax in addition to income tax. SE tax is required because it is identified as the social security and medicare tax for individuals who work for themselves. It is often compared to the taxes that are withheld from the pay of wage earners for social security and medicare.  In most cases when you hear someone refer to self employment tax they are primarily talking about social security and medicare taxes.

Before you can decide whether or not you must pay self employment tax and income tax it is important for you to identify your net profit and or net loss.  You can do this by subtracting your business expenses from your business income. If your expenses are less than your income, the difference is net profit and becomes part of your income. If your expenses are more than your income, the difference is a net loss. You usually can deduct your loss from gross income.

Once you are able to determine whether or not you are self employed and how much you must pay in quarterly taxes you are now ready to start marking quarterly payments but now you’re probably wondering how. If you head on over to the IRS website you will be able to identify a form that is called Form 1040-ES. It is used to help you figure out your quarterly taxes. It also contains a worksheet that you will fill out  that can help you estimate how much you should be paying in taxes.

After you determine your quarterly taxes it’s now time for you to start focusing on  how to file your annual return. In order to file your return you will need to use Schedule C.  Schedule C is used to report your income loss from a business you operated or a profession you once practiced. In most cases a Schedule C is used for employees and businesses who have expenses that are less than $5,000.  

Another popular question that is often asked is are you required to file an information return and the answer is yes. If you have made or received a payment as a small business or as a self employer you are required to file an information return which is defined as a mandatory tax document that businesses must use to notify the IRS about such transactions. (For example, IRS Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2 are all information returns.) Informing the agency about reported transactions is mandatory.

At the end of the day it is important that you know the law in your state. By understanding your tax law you will understand which tax forms you need to fill out, what taxes you’re required to pay and most importantly you will be able to identify how the IRS views your business.

Can You Claim Expenses Before A Business Starts?

Glasses on a business expense claim form

When starting a new business most startup founders have to spend a large amount of their own personal money to start the business. While that may be stressful there is good news, you can now take a start up deduction to limit your tax bill. Here’s how:

What Can I Write Off As a Startup Founder?

Once you launch your business the cost of all business expenses become deductible. These business startup costs are capital expenses. These are the costs that you incur to get an asset (a business) that will benefit you for more than one year.

In most cases you are unable to deduct expenses unless you sell or dispose of the business; however, there is a tax rule that will allow you to deduct up to $5,000 in start up expenses a year then after that you can deduct the remainder over the course of 15 years.

Here are examples of start up costs you can write off:

  • Legal and accounting fees
  • Licenses, permit, and other fees
  • The cost of investigating what it would take to create a successful
    business, including research on potential markets or products
  • Advertising costs, including advertising for your business opening and creating a business website
  • Office rent and utilities paid before the business begins operating
  • Rental of business equipment such as computers and office supplies
  • Costs for employee training before the business opens, and
  • Expenses related to obtaining financing, suppliers, customers, or
    distributors.

Can A Small Business Deduct The Cost Of A Computer?

Yes and no which means it depends on the situation. If you purchase a computer for your business and you use that computer exclusively for your business you can deduct the entire cost. If you use it for more than half of the time for your business you can also deduct the cost.

Additionally, you have to take into consideration your personal time. If you use a computer only 60 percent of the time, you can only deduct 60 percent of the expense.

Are There Exceptions to Start Up Cost Deduction?

There are exceptions to start up cost deduction because some costs related to opening a business may not be considered a start up expenses.  A few of these exceptions could include the following:

  • Inventory
  • Mile Tracking
  • Long-Term Assets
  • Research and Development Costs
  • Organizational Costs

When Can You Deduct Business Startup Costs?

Expenses that began as start up expenses are now operating expenses once your business fully launches. An example of this could include supplies such as paper, pens, printers, computers, etc.  These operating costs are the things that keep your business going on a day to day basis.

For Tax Purposes, When Does My New Business Begin?

Many people often ask when does your new business begin and according to tax purposes the IRS says that a venture becomes a business once it acquires all the assets necessary to perform its intended functions. You must also put those assets to work. The moment you start doing business is when you start doing business even if you aren’t yet earning money.

For example, If you have business that provides therapy to customer or clients your business begins when you first take the initiative to offer your services to other people. According to the IRS nobody has to hire you before you can become a full business you just have prove you are available to be hired.

In what ways can you claim expenses before a business starts? We’re always open to new thoughts, leave your comments below.

Small Business Coaching: Tax Basics

small business person accounting their taxes

The best and worst thing about running a small business is that you’re responsible for everything. While there’s a certain freedom that comes with this, there’s also an often overwhelming level of responsibility. Everything from finances, to staffing, to advertising, will fall squarely on your shoulders. You’ll have to be willing to accept the many challenges that come with running your own small business. For entrepreneurs all over America, these challenges are well worth the rewards that come with being your own boss. However, what many small business owners continue to be daunted by is the prospect of handling their company’s taxes. Needless to say, dealing with taxes for a business is a lot more complicated than just filing your personal taxes! We’re here with some of the tax basics for small business to make the task a little bit less stressful.

What Do I Have To Pay? 

Businesses have to pay a variety of taxes, rather than a simple blanket income tax. You’ll be taxed on a variety of aspects of your company; for example, you’ll have to pay unemployment taxes if you have hired people to work for your small business. If you are selling items, such as through a storefront, you’ll also need to calculate the sales tax that you owe. Payroll taxes, Social Security, and Medicare (FICA) will also be required.

In addition to these, there are a few other forms you’ll need to file for your business. First, you’ll want to fill out an SS-4 form to receive an Employer Identification Number, or EIN. You’ll use this number on most of the other forms that you fill out. You’ll fill out a Form 1040-ES to calculate your income tax, form 940 for Federal Unemployment Tax, and you’ll be required to withhold federal income taxes from the wages of your employees.

Who Are My Employees? 

Sometimes, there’s confusion as to who exactly the “employees” of a business are. The rules are different depending on if you have full fledged, W2 employees, or contractors that require a 1099 form. Each employee of your business will be required to fill out a W4 form, informing the IRS of their withholding allowances, any exemptions, and their marital status. You’ll be required to withhold their federal income taxes and pay into Social Security and Medicare. For non-employees who are being paid by your company, including independent contractors, freelancers, and consultants, you’ll have to send them IRS Form 1099 if they made more than $600 from you in any given year. In this case, you’re not required to withhold anything and the contractors themselves will have to report their own income. But how do you tell whether someone working for you is, legally speaking, an employee or a contractor? Usually, an employee is someone who is specially trained to work for your company, on your job site, and regularly receives direction from you. If they receive benefits from your company, then in the vast majority of cases they’ll be considered a W2 employee and not an independent contractor.

Deductions

Another common question is that of deductions. What, exactly, can you deduct? What even is a deduction? Well, if you write an expense off, you’re subtracting it from your total taxable income, meaning you owe the IRS less. Which costs and expenses can be written off on your taxes, and which cannot? Usually, you can deduct any business expenses that come up. What exactly constitutes a “business expense” is pretty broad; travel, equipment, raw materials, and legal fees can all be written off. However, it’s not quite as simple as simply deducting the cost of whatever you spend. You’ll usually only be able to deduct up to $5,000 in the first year for each of your startup cost. Any remaining cost will have to be paid off over the following years. We highly recommend seeking the help of a tax professional if you have complex expenses that you have questions about.

Getting Further Help

Seeking the help of a professional tax adviser is highly recommended to maximize your deductions and minimize the amount you owe, especially when you’re just starting out. A professional tax adviser will make use of the most up-to-date software, be aware of the latest laws and regulations, and be able to make educated, professional recommendations regarding your company. This will leave you free to make other critical business decisions, without spending a lot of manpower stressing over your taxes.

Process Payroll Quickly And Efficiently

Hand Writing Payroll With Blue Pen On Glass For Huddleston Tax CPAs Blog

Many businesses, in particular small businesses, waste a lot of valuable company resources as a result of mismanaged payroll. For anyone used to navigating the ins and outs of payroll, it’s not hard to understand why it can be such a challenge. However, it doesn’t have to be; an efficient, quick payroll system is certainly possible for a business of any size. Actually, it’s not only possible – it’s critical. An improperly managed payroll system can be a woeful drain on your company’s resources, in terms of both time and money. With that in mind, here are a few tips on how to process payroll quickly and efficiently:

Go Digital

In today’s modern, hi-tech world, one of the quickest and simplest ways to streamline your payroll is to simply go paperless. Paper timecards, paychecks, and pay stubs all cost money and have to be kept track of, costing time. It’s not just the cost of paper that you’ll save on; equipment such as printers, photocopiers and scanners are all expensive and you’ll be able to reduce that cost as well. Going paperless is a relatively simple process. The majority of workers you employ today will own smartphones; they can use these to clock in and out and keep track of their hours; just one example of a way you can start digitizing your payroll system. Keeping all of your financial information on paper is also a potential security risk that you can help to eliminate by switching to digital. Digitize as much of your payroll process as you can to save money, improve efficiency, and reduce waste.

Use The Most Up-To-Date Software

Whether you’ve already gone fully paperless, or are in the process of doing so, your payroll software should always be fully up-to-date. Whenever upgrades become available, you should take advantage of them in order to keep your payroll quick, efficient, and inexpensive. As your company grows, you’ll need to ensure your software keeps up; for example, you may need a program that can automatically generate 1099 forms if you employ independent contractors. The right program can do pretty much anything you’ll need; for example, many of them can streamline your HR and handle your taxes as well.

Keep Yourself, And Your Staff, Informed

Keeping yourself and your workforce properly informed is another critical step in the process of streamlining your payroll. It’s not enough to train your workforce once and decide that’s enough; as your business grows, your needs evolve, laws change, and technology improves, you’ll need to continuously update your staff. Occasionally, this will mean bringing in professionals to hold formal companywide trainings; sometimes, it will simply mean required reading material or training videos. Either way, keeping everyone in your company informed of all updates and changes is a must to maintain a quick payroll process.

Outsource, If Necessary

While following the advice given in this article will help you save a great deal of time and money, it’s also a lot for a small business owner to have to keep in mind. In many cases, you may be better off if you choose to outsource your payroll. A reputable payroll company can handle nearly everything for you. They’ll keep track of your staff and make sure they’re paid correctly and on time. They’ll also always have access to the latest software and be educated on the latest legislation regarding payroll in your state. When it comes to compensating your workers, one of the biggest challenges is the proper handling of payroll taxes. Outsourcing means that your taxes will be in the hands of educated professionals. Of course, choosing the right company to handle your payroll isn’t always easy. Make sure that you carefully vet any potential firms you are considering. Read reviews, check references, and don’t be afraid to ask questions! If you’re unsure of anything, a great payroll company will be able to put your mind at ease.

 

 

 

 

 

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Tips To Finding A Good Tax Adviser

Cartoon Man At Crossway With Three Arrows Pointing In Different Directions for Huddleston Tax CPAs Blog About Finding A Good Tax Advisor

 

No matter what your tax situation, tax season can be a huge headache. The more complex your financial situation is, the more difficult filing your taxes can be. This can be doubly true if you’re a business owner; trying to handle all of the credits, deductions, and various incomes for a business can be absolutely overwhelming. One of the ways you can take charge of your tax situation is to hire a tax adviser. However, there are many tax advisers out there and many of them aren’t exactly reputable. This article will offer a few tips for finding a good tax adviser for yourself or your business.

 

What Will A Good Tax Adviser Do For Me?

 Before we get too deep into offering advice, we should define what exactly it is that a tax adviser does. A tax adviser – a good tax adviser, anyway – is someone highly educated in local and federal tax laws, preferably a credentialed CPA, who will file your taxes for you and minimize your risk of audit. While there are many people, in a variety of professions, who can bring a lot of tax knowledge to the table, you should look for someone with one or more certifications. The first thing you should look for is a Preparer Tax Identification Number, or PTIN. Anyone who prepares tax returns professionally is required by the IRS to have a PTIN, so this the most basic requirement when looking for a tax adviser. You’ll want someone who has more than just this, however; find a professional who is credentialed in some way. While a CPA is the best option, an enrolled agent or licensed attorney can also be good options. 

 

Do I Need One?

 Whether you need a tax advisor or not largely depends on how complex your taxes are. If you are simply filling out a 1040EZ form, chances are you can handle it on your own pretty easily. However, if it gets much more complicated than that, you will probably benefit from making use of a tax adviser. If you’re in business for yourself, it gets more and more critical that you make use of a professional to file your taxes. Whether you own a business, are self-employed, or own property that you rent out to paying customers, your tax situation can veer towards the confusing and having your taxes filed professionally can decrease your audit risk significantly.

 

How Much Will It Cost?

 There are a lot of untrustworthy people out there claiming to be tax advisers, while in fact they’re scam artists trying to swindle you out of your money and perhaps even make off with your tax refund. You’ll have to be cautious when looking for a tax adviser; one of the things that you should keep an eye on when looking for someone to prepare your taxes is the fee. A professional CPA will usually charge an hourly rate; if a so-called “tax adviser” wants to charge you a flat rate, or take a cut of your refund, then there’s a good chance it’s a scam.

 

How Do I Find The Best Tax Adviser Out There For My Money?

 Even after you filter through all of the tax advisers that are obviously scams, you’ll still be left with a lot of people claiming that they’ll do the best job handling your taxes. Choosing the best one involves a little research, and a willingness to vet anyone you’re considering. First, look for someone who specializes in your specific needs; for example, if you’re a business owner, you’ll want to find someone who is an expert in business tax. When you find someone who has the proper credentials, make sure you read reviews online and check their references. Finding out if your prospective tax adviser has a lot of other satisfied customers will go a long way toward your own peace of mind. Make sure whoever you choose is well versed in all of the IRS laws when it comes to filing; for example, they have to provide their PTIN number when they file your taxes. They should also e-file when they submit your return; not only should this be expected of any reputable tax prep company working in the modern day, it’s also IRS law for any preparer that files more than 10 returns and receives compensation for their work.

 

 

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