New and Newsworthy
Claiming Your Parent as a Dependent
If you pay over half the cost of supporting a parent, he or she is considered your dependent for federal income tax purposes — which may qualify you to some significant tax breaks. Here are the details. New Credit for a Dependent Parent For 2018 through 2025, your dependent parent may qualify you for a new $500 tax credit under the Tax Cuts and Jobs [...]
Can You Require a Switch to Direct Deposit?
It may not be long before paper paychecks go the way of the five-and-dime store and the VCR. They may soon become obsolete as "direct deposit" into bank accounts is the predominant method of paying employees. And why not? All of the banking — including depositing the amounts into the employee's account and acceptance of the funds — can be completed with just a few clicks of a [...]
How Often Do You Pay Your Workers?
When you're running a business, you get to call the shots regarding your payroll practices, but only within limits. And by "within limits," we mean according to the laws in your state. For instance, you can pay employees on an hourly or salary basis according to federal law, but the prevailing state laws dictate the frequency of payments. In other words, if you prefer to pay employees just [...]
Another Massive Data Breach: How to Help Protect Yourself
The news of another massive online data breach may make you feel powerless to safeguard your financial privacy. But you can take some concrete steps to protect yourself in the aftermath of the recent Capital One case, as well as other breaches. "If you needed yet another nudge to start keeping an eye on your credit report to protect against identity theft, Capital One has delivered it," explains [...]
Nine Ways to Avoid Wrongful Discharge
An ex-employee's wrongful discharge action against an employer is more likely today. That's because laws and court decisions, protecting employees and expanding on employees' rights, have increased. So, what are the employer, manager and supervisor to do? Begin by understanding the concept of wrongful discharge. Wrongful, as in illegal and unfair. And discharge, as in termination. So the ex-employee, in filing a legal action against an employer and [...]
IRS Explains the Differences Between Tips and Service Charges
Employers in the restaurant, hotel, casino and other service industries must comply with laws associated with tips, including the Fair Labor Standards Act and the Internal Revenue Code. To assist them, the IRS issued Fact Sheet 2017-8 that explains the differences between tips and service charges for tax purposes. Are the Payments Discretionary? The IRS emphasizes that tips are discretionary (optional or extra) payments determined by a customer [...]
