It seems like a simple question: How many full-time workers does your business employ? But, when it comes to the Affordable Care Act (ACA), the answer can be complicated.
The number of workers you employ determines whether your organization is an applicable large employer (ALE). Just because your business isn’t an ALE one year doesn’t mean it won’t be the next year.
50 is the magic number
Your business is an ALE if you had an average of 50 or more full time employees — including full-time equivalent employees — during the prior calendar year. Therefore, you’ll count...
With health care costs continuing to climb, tax-friendly ways to pay for these expenses are more attractive than ever. Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs) and Health Reimbursement Accounts (HRAs) all provide opportunities for tax-advantaged funding of health care expenses. But what’s the difference between these three accounts? Here’s an overview:
HSA. If you’re covered by a qualified high-deductible health plan (HDHP), you can contribute pretax income to an employer-sponsored HSA — or make deductible contributions to an HSA you set up yourself — up to $3,350 for self-only coverage and $6,750 for family coverage for 2016. Plus, if you’re...
This year’s stock market volatility can be unnerving, but if you have a traditional IRA, this volatility may provide a valuable opportunity: It can allow you to convert your traditional IRA to a Roth IRA at a lower tax cost.
Contributions to a traditional IRA may be deductible, depending on your modified adjusted gross income (MAGI) and whether you participate in a qualified retirement plan, such as a 401(k). Funds in the account can grow tax-deferred.
On the downside, you generally must pay income tax on withdrawals, and, with only a few exceptions, you’ll face a penalty if you...
Many businesses host a picnic for employees in the summer. It’s a fun activity for your staff and you may be able to take a larger deduction for the cost than you would on other meal and entertainment expenses.
Generally, businesses are limited to deducting 50% of allowable meal and entertainment expenses. But certain expenses are 100% deductible, including expenses:
- For recreational or social activities for employees, such as summer picnics and holiday parties,
- For food and beverages furnished at the workplace primarily for...
If disaster struck your company tomorrow, would you know how to quickly reach employees and their families? Would you be able to talk to them quickly and efficiently? If the answer to those questions is anything but a resounding "yes," it's time to create or review your crisis communication plan.
One of the most important ingredients for emergency preparedness is also the thing that many companies pay minimal attention to: employee contact information. Although organizations typically ask new hires for these details, they often forget to update the data. So make it a habit to ask employees to refresh their contact information at least once a year. To help you remember, tie it...
Yeo & Yeo CPAs & Business Consultants, a leading Michigan accounting firm, is pleased to announce that Payroll Specialist Megan Tuckey has earned the Fundamental Payroll Certification (FPC) designation from the American Payroll Association. The certification is exam-based and proves extensive knowledge of payroll and how it relates to tax laws and regulatory compliance.
Tuckey’s areas of specialization include calculation of payroll taxes, filing and submitting payments for payroll taxes, processing payroll, and time management. She is a member of the board of directors of the Great Lakes Bay Chapter of the American Payroll Association. She holds a bachelor’s degree from...