Our Accounting Articles

Hire Your Kids the Right Way: Avoid Tax Pitfalls

Have you heard of the Kiddie Tax? Before 1986, wealthy taxpayers shifted some of their wealth to their children to take advantage of their lower tax bracket. The Kiddie Tax, which was a part of the Tax Reform Act of 1986, put an end to that tax-avoidance loophole.

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The Key Functions: Employee Benefits Plan Audit

Companies that provide retirement benefits to at least 100 employees must conduct an annual audit of their plan. The complexity of the regulations and the requirements can be so overwhelming. The Employee Benefits Security Administration recently performed a study to assess the quality of employee benefit plan audits. They determined that 39% of audits conducted contain major deficiencies.

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Use Depreciation to Your Benefit

Think back to your college days. You went to the college book store at the start of the semester to buy your books, and went back just four short months later to sell them. The value was never the same. Not even close. As a penny-pinching college student, depreciation was your enemy. As a business owner, depreciation is your friend.

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A Second PPP Loan

On December 27th, Congress passed a new pandemic relief bill. In addition to stimulus checks, enhanced unemployment benefits, rental assistance, and more, the bill provides a second round of Payment Protection Program (PPP) loans to help small businesses. For small business owners who want to apply for these second draw loans, or PPP2 as they’ve been aptly nicknamed, here’s what you need to know.

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