Independent Contractor or Employee – The Distinction Matters to the IRS

If you’re a business owner, you have financial incentive to want to classify workers as independent contractors rather than as employees. For example, you’re required to withhold and pay taxes on employee wages, and you may need to offer employee benefits such as paid time off and pension contributions. None of these are required with…

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Plan Today for Future Long-Term Care Costs

According to the U.S. Department of Health and Human Services, nearly 70% of people turning age 65 will require long-term care, such as assistance with basic personal activities during their lifetimes. With costs of this care ranging from $6,000 to $10,000 a month or more, planning to address that risk is a smart move. One…

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Cash or Accrual : What’s the Difference?

cash or accrual

When you start a business, you have many decisions to make. One is the method of accounting your business will use for reporting income and expenses on your tax return- cash or accrual. Two methods generally used are “cash” and “accrual.” The cash method is the easiest to implement. Under the cash method, you recognize…

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The Affordable Care Act – Know the Terms

Are you still unclear about your responsibilities as an employer under the Affordable Care Act (ACA)? Do you find the definition of ACA terms confusing? Here’s a plain English guide to selected terms employers are likely to hear. Applicable large employer. A large employer is defined as an employer with at least 50 full-time employees…

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Post 5 of 5: How to Prevent Fraud In Your Business

How to Prevent Fraud in Your Business

In our 4th post on fraud, we covered the opportunities for fraud in a business. After covering material that is negative in many ways, let’s discuss something positive: How to PREVENT fraud in your business! Separation of Duties Separation of duties is a cornerstone concept of accounting. In a small business, this critical separation can be…

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Post 2 of 5: More Fraudulent Disbursement Schemes

Fraudulent Dispersement Schemes

Fraudulent disbursement schemes provide a unique opportunity for the fraudster. The company is essentially “tricked” into making a legitimate- looking disbursement. Unlike larceny or skimming schemes, the employee is not even physically required to take custody of the funds; the money can be converted indirectly by the employee through a third source, such as a shell…

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