Returning Value Blog

Many employers sponsor 401(k) plans to help employees save for retirement. But sometimes those employees need access to plan funds well before they retire. In such cases, if the plan allows it, participants can make a hardship withdrawal.

Once an employer identifies a prospect for an open position and sets up an interview, another great challenge arises: How do you effectively use the interview to determine whether this person is right for your organization?

Financial statements help investors and lenders monitor a company’s performance. However, financial statements may not provide a full picture of financial health. What’s undisclosed could be just as significant as the disclosures. Here’s how a CPA can help stakeholders identify unrecorded items either through external auditing procedures or by conducting agreed-upon procedures (AUPs) that target specific accounts.

It’s easy to get frustrated when an employee is failing to produce the volume or quality of work you’re looking for. A business owner or department manager may even give in to the temptation to play the blame game, pointing a finger at the struggling worker and only exacerbating the situation.

Are you reporting the value of your frequent flyer miles as taxable income?

Most of the health and welfare plans offered by employers today are subject to the Employee Retirement Income Security Act of 1974 (ERISA). Generally, ERISA envisions that employee benefit plans will have both a plan document and a summary plan description (SPD). But, in some cases, a single document may serve both purposes. Let’s look at the difference between the two and under what circumstances they may be combined.

Meal, vehicle, and travel expenses are common deductions for businesses. But if you don’t properly document these expenses, you could find your deductions denied by the IRS.

For tax years beginning in 2018 and beyond, the Tax Cuts and Jobs Act (TCJA) created a flat 21% federal income tax rate for C corporations. Under prior law, C corporations were taxed at rates as high as 35%. The TCJA also reduced individual income tax rates, which apply to sole proprietorships and pass-through entities, including partnerships, S corporations, and, typically, limited liability companies (LLCs). The top rate, however, dropped only slightly, from 39.6% to 37%.

There are several different types of tax-free weekend events in the U.S. Some apply to Energy Star products or hurricane preparedness, or back-to-school shopping needs. This year the State of Alabama will be participating in the Back-to-School Sales Tax Holiday Weekend beginning Friday, July 20 through Sunday, July 22. Alabama’s 13th Back-to-School Sales Tax Holiday will begin at 12:01 a.m. on Friday, July 20, and end at midnight on Sunday, July 22.

The Tax Cuts and Jobs Act (TCJA) provides a valuable new tax break to noncorporate owners of pass-through entities: a deduction for a portion of qualified business income (QBI). The deduction generally applies to income from sole proprietorships, partnerships, S corporations and, typically, limited liability companies (LLCs). It can equal as much as 20% of QBI. But once taxable income exceeds $315,000 for married couples filing jointly or $157,500 for other filers, a wage limit begins to phase in.