Category: SR Client Questions
SR Client Question: How do I compensate nonexempt employees for travel time?
Time spent traveling during normal work hours is considered compensable work time. Normal work hours are defined as the standard hours a company is posted open, or in the case of flexible company hours, the standard hours an employee typically...
SR Client Question: Are business-issued cell phones considered a fringe benefit?
The value of the business use of an employer-provided cell phone, provided primarily for non-compensatory business reasons, is excludable from an employee's income as a working condition fringe benefit. Personal use of an employer-provided cell phone, provided primarily for non-compensatory...
SR Client Question: Does our HOA need to file a tax return?
Yes, Homeowner Associations (“HOAs") must file a tax return every year. To qualify as an HOA, 60% of revenues and 90% of expenses must relate to the management and maintenance of the properties. Any income that is not from members (i.e.,...
SR Client Question: Are theft losses deductible?
Theft losses are NOT deductible under the current law, which was enacted as part of President Trump's 2017 Tax Cuts and Jobs Act. If a person is scammed out of their retirement savings, they have to pay taxes on the...
SR Client Question: Is there a time limit on claiming a tax credit or refund?
Answer: The latest date, by law, you can claim a credit or federal income tax refund for a specific tax year is generally the later of these two dates: 3 years from the date you filed your federal income tax...
SR Client Question: Is a salary advance taxable?
Some employers allow employees to request a salary advance, receiving their paycheck earlier than the standard payday. For example, if a paycheck is issued on the 1st of the month instead of the usual 15th, the advance received on the...
SR Client Question: Do I issue a Form 1099 to a law firm collecting fees for my medical practice?
When a medical practice or another business hires a law firm or third party on a contingent basis to collect overdue fees or invoices, it triggers obligations under two distinct sections of the tax code. If the law firm or...
SR Client Question: Do I owe Michigan sales tax when I buy a vehicle from a business I own?
The transfer of vehicles from a business entity to the owner of the business is addressed in Revenue Administrative Bulletin 1991-1 and makes, in most instances, the transfer or "sale" of a vehicle from a business to its owner exempt from owing State...
New year is good time to review basic rules surrounding Forms 1099-MISC and W-9
January marks the annual period when most businesses complete Forms 1099-MISC, prompting a review of essential details about this standard reporting process. Generally, payments exceeding $600 made in the course of business to a non-corporate entity or individual must be...
SR Client Question: Do I need to refile my unemployment claim to receive extended benefits?
The newly passed COVID-19 Relief Bill offers extended federal unemployment benefits for states like Michigan. It appears, at least at this time, that recipients currently receiving unemployment benefits do NOT need to refile to be eligible for the extension. There...