Category: Business Practices

Ten questions every business owner should ask before hiring a CPA firm

Ten questions every business owner should ask before hiring a new CPA firm: How long has the firm been in business? Demonstrated longevity and stability are important factors to consider. What is the experience of the staff members who will...

Investigatory and acquisition costs when starting or buying a new business may be deductible

Many business owners know their business-related expenses may be deductible, but there are different tax rules for business start-up or acquisition costs.  Investigatory costs, start-up costs, organization costs, capitalized costs and expansion costs are treated by the IRS as follows:...

IRS offers penalty relief to ERTC claimants

The IRS recently reminded employers of penalty relief related to claims for the Employee Retention Tax Credit (ERTC).  The situation may arise when additional income tax is owed because the deduction for qualified wages is reduced by the amount of a...

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...