Profit sharing is a compensation strategy that allows businesses to distribute a portion of their profits to employees, creating a direct link between employee performance and company success. This approach not only incentivizes employees to work harder but also fosters a sense of ownership and alignment with the company’s goals. Profit-sharing plans can vary widely … Read more
A leave of absence (LOA) is a formal arrangement that allows employees to take an extended period away from work while maintaining their employment status. This type of leave can be utilized for various reasons, including personal health issues, family emergencies, educational opportunities, or military service. Depending on the circumstances surrounding the LOA, it can … Read more
The U.S. Department of Labor (DOL) has implemented significant updates to overtime regulations under the Fair Labor Standards Act (FLSA), making millions of salaried employees eligible for overtime pay. As of July 1, 2024, the salary threshold for overtime eligibility increased to $43,888 annually ($844 per week), with a further increase to $58,656 annually ($1,128 … Read more
A Safe Harbor 401(k) is a type of retirement savings plan designed to simplify compliance with IRS nondiscrimination rules while offering significant benefits to both employers and employees. Unlike traditional 401(k) plans, a Safe Harbor plan requires employers to make mandatory contributions to employees’ accounts, which are immediately vested. This eliminates the need for time-consuming … Read more
Licensing your business means obtaining the necessary permits or approvals from local, state, or federal authorities to legally operate within a specific jurisdiction. A business license not only legitimizes your operations but also ensures compliance with regulations that protect public safety, maintain industry standards, and enable accurate tax collection. Whether you’re running a small home-based … Read more
The EFIN (Electronic Filing Identification Number) is a critical identifier issued by the IRS to tax professionals and businesses authorized to electronically file tax returns. Whether you’re a tax preparer starting your business or an experienced professional who misplaced this number, knowing how to find your EFIN for free is essential. The process can seem … Read more
When discussing the intricacies of investment funds, a key topic is what does carried interest mean for a K-1? Carried interest represents a share of profits allocated to general partners of private equity, venture capital, or hedge funds as compensation for their management efforts. This form of income is typically treated as a capital gain … Read more
When discussing tariffs, a critical question arises: Who pays for tariffs, and how do they affect the economy? Tariffs are taxes imposed by governments on imported goods, typically paid by importers when the goods cross national borders. However, the financial burden of these taxes often extends far beyond the initial payer. While governments collect revenue … Read more
Form 8958 is designed for individuals who are subject to community property laws and file separate federal income tax returns. It helps in accurately reporting community and separate income, deductions, credits, and other relevant amounts. Each spouse or RDP must report half of all community income and their own separate income. Step-by-Step Instructions Additional Notes … Read more
Office expenses encompass a wide range of costs incurred in the day-to-day functioning of a business. These expenses are distinct from office supplies, which are tangible items that are regularly used and replenished, such as pens and paper. Office expenses, on the other hand, include non-tangible services and certain hardware that support business operations but … Read more