March 8th, 2020 by Kim Chen
Just as you presumably visit your doctor annually for a checkup, you should review the administrative processes and fiduciary procedures of your 401(k) plan at least once a year. Study your plan’s investment choices to determine whether the selection available to participants is appropriate. Calculate the amount of current participant fees associated with your plan’s […]
December 23rd, 2019 by Kim Chen
July 13th, 2019 by Kim Chen
Moving to the cloud? Under current accounting rules, when a cloud computing (or hosting) arrangement includes a software license, it’s capitalized over the term of the contract. If not, the setup costs are expensed as incurred. Businesses told the FASB there’s no difference between on-site software applications and those managed in the cloud. So, starting […]
June 28th, 2019 by Kim Chen
In today’s tightening job market, to attract and retain the best employees, small businesses need to offer not only competitive pay, but also appealing fringe benefits. Those that are tax-free are especially attractive to employees. Examples include many types of insurance (health, disability, long-term care, life) and assistance plans (dependent care, adoption and educational), subject […]
June 20th, 2019 by Kim Chen
If you own a business and don’t have a tax-advantaged retirement plan, it’s not too late to establish one and reduce your 2018 tax bill. A Simplified Employee Pension (SEP) can be set up for 2018 as long as you do it before your 2018 income tax return filing deadline. You have until the same […]
June 11th, 2018 by Kim Chen
“Blockchain” may sound like something that goes on your car, but it’s actually a digitally distributed ledger typically shared on a peer-to-peer network. Entries are stored in blocks, with each block containing a timestamp and providing a link to the previous block. Nothing can be altered without changing every block under the approval of most […]
May 7th, 2018 by Kim Chen
A Texas domestic nonprofit corporation, established to deliver quality management consulting services to medical providers and advance government programs through patient safety initiatives, was denied tax-exempt status. The entity was to provide low-income housing to individuals, “uplifting services for the elderly and veterans,” and internal auditing services. IRC Sec. 501(c)(3) provides that an organization be […]
November 15th, 2017 by Kim Chen
One important step to both reducing taxes and saving for retirement is to contribute to a tax-advantaged retirement plan. If your employer offers a 401(k) plan, contributing to that is likely your best first step. If you’re not already contributing the maximum allowed, consider increasing your contribution rate between now and year end. Because of […]
November 10th, 2017 by Kim Chen
Tax planning for executive compensation such as restricted stock, stock options and nonqualified deferred comp is generally more complex than for salaries, bonuses and traditional employee benefits, especially if you could be subject to the additional 0.9% Medicare tax or the 3.8% net investment income tax. These taxes apply when certain income exceeds the applicable […]
November 7th, 2017 by Kim Chen
If your estate plan includes one or more trusts, review them in light of income taxes. For trusts, the income threshold is very low for triggering the: Top income tax rate of 39.6%, Top long-term capital gains rate of 20%, and Net investment income tax (NIIT) of 3.8%. The threshold is only $12,500 for 2017. […]
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