Returning Value Blog

Distinguishing between independent contractors and employees is important for both tax and financial reasons. In order to comply with federal tax laws, you've got to be crystal clear about your workers' status and keep accurate records no matter what. Here's how to distinguish between independent contractors and employees – and why it's important.

Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund, maybe your key to getting all the Covid relief your business is entitled to. It's a 30-page form, and the rules are complex, but here are the basics.

Health savings accounts are paired with high-deductible health plans for an especially adaptable insurance and savings program. HDHPs have large deductibles that members must meet before receiving coverage. Participants meet those deductibles by contributing their own money to HSAs. The government does not tax these funds as long as they're used to pay for qualified medical expenses.

Do you outsource HR and IT but feel squeamish about letting someone else get too close to your numbers? You probably have a fluctuating need for a bookkeeper, an accountant, a controller, and a chief financial officer. You could hire all these people, but outsourcing can provide these services when you need them at significant cost savings.

In most offices, someone from HR hangs the relevant Labor Department posters in the company breakroom, and that's that. But in this new remote world, what are the requirements? Send the posters to each employee and tell them they have to hang them in their kitchens? Actually, that's not necessary, but the DOL has published some guidance for companies that are partially or entirely remote.

According to a statement on the Centers for Medicare & Medicaid Services website, most consumers with private health coverage can go online or to a pharmacy or store, buy a test, and have their health plan pay for it, either upfront or after submitting a claim. "This requirement incentivizes insurers to cover these costs upfront and ensures individuals do not need an order from their health care provider to access these tests for free." The policy took effect on Jan. 15. The full details of the policy are available on the CMS website.

When you manage a nonprofit, spending money is always an issue. After all, your company is funded by grants and donations, many of which have strings attached. It's your obligation to keep the organization lean and the overhead low. However, the bigger a company gets, the more money it can save by having a centralized department that manages payroll and staffing. It's also a good way to keep employees happy, thereby reducing turnover. So what should you consider as you decide how to add human resources services to your organization?

The need for innovation and creativity is not going away now that businesses and workplaces are opening up again. Business leaders need to consider how they can continue encouraging these traits as they navigate to a new normal. One way to accomplish this is by ensuring your business is a psychologically safe space where employees can feel free to be themselves, be right or wrong, and present out-of-the-box ideas without feeling threatened or diminished.

Documentation is key to wage and hour compliance. Simplify time tracking by automatically calculating hours worked as well as vacation time, holidays, sick days, and overtime. There was a time, not so long ago, when timesheets were filled in manually. Spreadsheets were the next development, but today, managers can choose among a variety of software options that can solve a variety of problems.

Many businesses provide education fringe benefits so their employees can improve their skills and gain additional knowledge. On a tax-free basis, an employee can receive up to $5,250 each year from his or her employer for educational assistance under a “qualified educational assistance program.”