Category: Business Practices

Employer-provided tuition assistance programs must meet requirements

An employer-provider educational assistance program is a separate written plan that provides educational assistance only to employees*. For Employers: The program qualifies only if all of the following tests are met: The program doesn't favor highly-compensated employees**. To determine whether...

SR Client Question: Is a salary advance taxable?

Some employers offer employees the option of requesting a salary advance ahead of the standard payment date; for instance, the paycheck would be issued on the first of the month, as opposed to the standard payday of the 15th of...

Employee Retention Tax Credits still available for some businesses

Your business may be eligible for an employee retention tax credit, though the program expired in September. There’s still time to file a claim for up to $28,000 per employee, even if you received a PPP loan. Certain startups and...

New round of grants available to Michigan businesses hurt by pandemic

The Michigan Department of Treasury is administering a $409 million business grant relief program designed to help certain Michigan businesses that have experienced a financial hardship due to the COVID-19 public health emergency. Under the Afflicted Business Relief Grant Program,...

SR Client Question: Do I issue a Form 1099 to a law firm collecting fees for my medical practice?

When a medical practice or other business engages, on a contingent basis, a law firm or other third party to collect outstanding fees or invoices on its behalf, there are two different tax code sections that are relevant. Assuming that...

SR Client Question: Are disability benefits paid out under an employer group disability plan taxable to the employee?

If the employer provides group term disability insurance as a nontaxable fringe benefit to the employee, then benefits received under the plan are taxable to the employee.  However, per IRS Revenue Ruling 2004-55, the employer can have the plan allow...

Last minute rule changes could affect tax payments made by partnerships and S-Corps

Michigan Governor Gretchen Whitmer recently signed into law the ability for pass-through entities (partnerships and S-Corps) to elect and pay an entity-level tax.  This would allow for the pass through business owners to take a state income tax deduction at...

Net Operating Loss (NOL) carry-forward requires careful record-keeping

Taxpayers who claim a net operating loss (NOL) on a tax return must keep careful records to substantiate the claim, including past tax returns that show consistent treatment of NOLs and financial data (or strong corroborating testimony and recreated records), or...

Determining nexus for multi-state income tax filings for businesses

Establishing "nexus" of a corporation's business activity determines the state or foreign country which has jurisdiction to impose an income tax or franchise tax measured by net income.  For businesses generating revenue in multiple states, or doing activities that generate...

Infrastructure Bill ends ERTC for employers early

The recently passed $1.2 trillion Infrastructure Investment and Jobs Act includes key provisions affecting American employers, including an early end to the Employee Retention Tax Credit (ERTC), also referred to as the Employee Retention Credit (ERC).  The ERTC was created in...