Offering paid family and medical leave (PFML) can help businesses attract and retain employees while providing workers with financial support when they need time away to care for themselves or their families. The Section 45S PFML tax credit can help eligible employers offset some of the costs. The One Big Beautiful Bill Act (OBBBA) made […]
Employers often face tough staffing choices. If you decide to let someone go because of budget cuts, restructuring or other circumstances, offering severance may seem like the right thing to do. It can offer the individual some temporary financial support while helping you manage a difficult transition. But such payments can also create unexpected costs […]
Shareholders sometimes provide funds to their businesses outside of their initial investment or regular capital contributions. These transfers — commonly referred to as shareholder advances — raise an important accounting question: Under U.S. Generally Accepted Accounting Principles (GAAP), should the business report the advance as a liability or as equity? The term “shareholder” technically refers […]
When valuing a closely held business, events that happen after the valuation date are generally off limits. However, there are some key exceptions. Here’s a closer look at when business valuation professionals might need to address subsequent events, also known as ex post facto information, in their analyses. Reasonably foreseeable events The first exception relates to subsequent events that […]
Executives and key employees often receive stock-based compensation in addition to salaries and bonuses. If restricted stock is part of your compensation, considering the potential tax consequences well before December 31 is a good idea. You may have decisions to make if: 1) you’ve recently received an award or are expecting one soon, 2) your […]
A profitable business can still run short of cash. Receivables may take time to collect, inventory can tie up funds and bills may come due before customers pay. Effective working capital management can help your business maintain liquidity and remain prepared for growth opportunities or unexpected challenges. What are the components of working capital? Working […]
Hiring independent contractors provides your business with valuable flexibility, particularly when you require specialized expertise or help with a short-term project. But calling someone an independent contractor doesn’t automatically make them one. Worker status depends on your actual working relationship. And getting it wrong can expose your business to tax liabilities and other consequences. What’s […]
Contributing as much as possible to tax-deferred retirement accounts such as traditional 401(k)s and IRAs is a common recommendation. Contributions generally are pretax or deductible, and the power of tax-deferred compounding can help turbocharge growth. But some taxpayers can reach a point where maximizing tax deferral may become counterproductive. Potential downsides of tax-deferred saving After […]
Occupational fraud can occur at any level of an organization. But misconduct by owners and senior executives can be particularly costly because they usually have greater authority and can override internal controls. According to the Association of Certified Fraud Examiners’ (ACFE’s) Occupational Fraud 2026: A Report to the Nations, owners and executives account for 16% of […]
Every time your small business pays an employee, you’re responsible for both issuing an accurate paycheck and withholding, paying and reporting an assortment of taxes. Fully understanding your obligations can help you better manage cash flow, maintain compliance and avoid costly surprises. Let’s review the fundamentals. Federal, state and local Employers must withhold federal income tax from […]
Disability insurance is a valuable benefit provided by many employers. It replaces a portion of the insured person’s income — typically 45% to 65% of pre-disability earnings — after a specified waiting period that starts when the person becomes disabled (as defined by the policy’s terms). Whether you’re just beginning to receive disability benefits or you’re […]
It’s easy to regard unemployment taxes, whether federal or state, as fixed costs. But you may be able to control these costs and other claims-related expenses more than you might think. Let’s explore some practical strategies for doing just that. Double down on retention Employers are commonly urged to strengthen employee retention. And for good […]