Recent News 2017-07-03T16:34:54+00:00

New and Newsworthy

QBI Deduction Provides Tax Break to Pass-Through Entity Owners

The IRS recently issued proposed reliance regulations to help clarify the new qualified business income (QBI) deduction that was introduced as part of the Tax Cuts and Jobs Act. This guidance is complex and hundreds of pages long. As part of the proposed regs, the IRS explained that, if certain requirements are met, individuals, estates and trusts (all referred to as "individuals" by the proposed regs) that own interests in more than one qualifying trade or business can (but aren't required to) aggregate them, by treating them as a single trade or business. The regulations [...]

By | September 6th, 2018|Categories: Articles, HRP Blog|0 Comments

Take Special Care with Uncashed Paychecks

The Scenario: Your company issues a final paycheck to an employee who is moving out of town and leaves only a forwarding address. A year later, the check still hasn't been cashed despite several letters your company has sent offering to void the original and reissue the check. You know that your bank won't cash the check now and you would like to just void it in your records and return the money to your general account The Reality: You can't do that. Uncashed paychecks are a business liability that can be extinguished only when they [...]

By | September 6th, 2018|Categories: Articles, HRP Blog|0 Comments

The Ins and Outs of Garnishing

Garnishing an employee's wages can be inconvenient, but there is little you can do about it. When one of your employees fails to pay a debt or owes the government money, a court may issue an order to withhold income, which means your company takes money from the employee's paycheck and forwards it to the debtor. Courts typically order garnishments on, among other debts, child support, unpaid taxes, and defaulted student loans. When your company receives a garnishment order, federal and state laws kick in to protect the employee. For example, Title III of the [...]

By | August 21st, 2018|Categories: Articles, HRP Blog|0 Comments

How Tax Reform Affects Tax Planning for C Corporations

One of the biggest changes under the Tax Cuts and Jobs Act (TCJA) is the permanent installation of a flat 21% federal income tax rate for C corporations for tax years beginning after 2017. The new 21% rate applies equally to personal service corporations (PSCs). (Under prior law, PSCs were taxed more heavily than other C corporations.) This is great news if you own or manage a C corporation, including a PSC. Here are some specific tax planning considerations for these entities under the TCJA. Defer Business Income With the reduced federal income tax rate [...]

By | August 21st, 2018|Categories: Articles, HRP Blog|0 Comments

Is an Association Health Plan Right for Your Company?

Association health plans (AHPs) are health benefit policies made available to small employers through a group purchasing arrangement for the benefit of association members and their employees. Under the old rules, AHP availability was limited to tightly linked employers (such as parent-child companies). Under new regulations issued by the Department of Labor on June 19, "an AHP now could offer coverage to some or all employers in a state, city, county, or a multi-state metro area, or it could offer coverage to businesses in a trade or industry group nationwide." The term "now" in that [...]

By | August 1st, 2018|Categories: Articles, HRP Blog|0 Comments

Effects of the Tax Law Vary Based on Major Life Events

Change is part of life. The Tax Cuts and Jobs Act (TCJA) has brought sweeping changes to the federal income tax rules for individuals. But how will you and your family be affected? That depends on your specific circumstances. Major life changes — from marriage and birth to divorce and death — can provide opportunities and pitfalls under the tax law. Here's an overview of some TCJA provisions that may be relevant during different life events. Marriage Your marital status for the 2018 tax year will depend on whether you're married on December 31, 2018. [...]

By | August 1st, 2018|Categories: Articles, HRP Blog|0 Comments

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