An annuity is a contract between you and an insurance company that is marketed to provide predictable income in retirement, often to address the risk of outliving savings. The insurance company pays you a fixed or variable income, often through guaranteed periodic payments for either a specified period or your lifetime. Annuities shift a portion […]

Every employer covered by the Fair Labor Standards Act must keep records for each covered nonexempt worker. There’s no required form, but the records must include accurate data about the employee and hours worked plus wages earned. Once you’ve complied on a federal level, thoroughly research your state-specific requirements for each location you operate in. […]

As the IRS explains, a 2% shareholder is someone who directly or indirectly owns more than 2% of the corporation’s stock or stock with more than 2% of the voting power. The business must treat a 2% shareholder as a partner in a partnership for fringe benefit purposes. What does this mean for life insurance? […]

There may be circumstances under which you would want to move assets from a traditional IRA to a Roth IRA. Only people who already have a Roth IRA can complete a Roth IRA conversion, but the conversion can be made even if your current income makes you ineligible for direct contributions to the Roth IRA. […]

The IRS’s annual “Dirty Dozen” memo lists 12 scams you should watch out for. This education effort wants to protect you from tax traps like identity theft or being misled into claiming tax credits you’re not entitled to. Let’s look at these threats, often fueled by social media: Email phishing scams—Email and text scams target […]

If you’re thinking about offering ESOPs to your employees, you might find them appealing because of the way they can help reward those employees who helped you build your business. After all, an ESOP is an aspect of an employee’s retirement plan, and like other tax-advantaged retirement accounts, your employees won’t owe taxes on any […]

As you approach retirement age, you may wonder when you should elect to receive Social Security. How much you receive is based both on your lifetime earnings and when you start receiving payments. If you wait to take Social Security until you reach full retirement age, which is defined by the federal government, you’ll receive […]

As the IRS explains, a 2% shareholder is someone who directly or indirectly owns more than 2% of the corporation’s stock or stock with more than 2% of the voting power. The business must treat a 2% shareholder as a partner in a partnership for fringe benefit purposes. What does this mean for life insurance? […]

The Department of Labor’s final rule for employee or independent contractor classification under the Fair Labor Standards Act rescinds the 2021 Independent Contractor Rule, replacing it with guidance on analysis that’s more consistent with the FLSA as interpreted by longstanding judicial precedent, and was scheduled to take effect March 11, 2024. The final rule reduces […]

Want to make sure your tax paperwork is organized? Keep excellent records all year. That way, after the end of the year, you just gather applicable tax documents that arrive in the mail or become available online. Ensure you’ve received all your information forms before filing to avoid having to file an amended return later. […]