Staying Secure During Seasonal Scam Spikes

As online shopping, shipping activity, and digital payments increase at the end of the year, so do fraud attempts. The FBI reports that scammers consistently use this period to target both individuals and businesses with more sophisticated, multi-channel attacks. For many organizations, this can lead to financial loss, data exposure, and operational disruption.

This article highlights the most common scams seen this time of year and the steps your business can take to stay protected.

Scam Tactics on the Rise

According to recent FBI warnings, attackers are focusing on several high-impact methods:

Non-delivery scams: You pay for goods or services that never arrive.
Non-payment scams: Your business delivers a product or provides a service, but the buyer never pays.
Fake online stores and marketplace listings: Scammers use look-alike websites, cloned product pages, or social media storefronts to collect payment and disappear.
Phishing and spoofed delivery notices: Emails and texts impersonate trusted retailers or shipping companies, prompting recipients to click a link, “resolve” a delivery issue, or update billing information.
Gift-card payment schemes: Fraudsters demand payment through gift cards or prepaid cards — a method chosen because it’s difficult to trace or reverse.

The FBI notes that non-delivery and non-payment scams alone resulted in hundreds of millions of dollars in losses last year, with a significant increase in fraudulent purchase activity reported across major platforms.

What This Means for Businesses

Many businesses operate in environments where purchasing, invoicing, shipping, and online transactions are routine and seamless. That creates opportunities for scammers, especially when employees are moving quickly or managing a higher-than-usual volume of orders and communications.

Common risks include:

Employees clicking spoofed shipment or invoice links
Purchases from fraudulent vendors
Business email compromise tied to fake order confirmations
Stolen credentials through cloned login pages
Unverified payment requests sent to accounting teams

Even well-trained users can miss subtle red flags when messages appear legitimate, and urgency is implied.

How to Reduce Your Risk

The best defense is a mix of awareness, verification, and strong security controls. YYTECH recommends the following:

Verify unexpected messages. If an email or text asks you to confirm an order, resolve a delivery issue, or update your payment information, go directly to the vendor’s website rather than using the provided link.
Check URLs carefully. Look for misspellings, unusual domain extensions, or slight variations of well-known brands.
Use official tracking tools. For shipments, log in through the carrier’s app or website instead of following links.
Enable multi-factor authentication (MFA). MFA adds a strong layer of protection even if credentials are compromised.
Keep systems updated. Unpatched devices make it easier for scammers to deploy malicious attachments or exploit known vulnerabilities.
Provide quick refresher training. A reminder to your team about common scams can significantly reduce mistakes.

Final Guidance

Cybercriminals take advantage of the higher transaction volume and lower vigilance that typically occurs at this time of year. With intentional verification and the right technical safeguards in place, your organization can significantly reduce its exposure to these scams.

If your team would benefit from phishing-resistance tools, security awareness training, or a deeper review of your environment, Yeo & Yeo Technology can help you strengthen your defenses.

As the year draws to a close, it’s a great time to revisit your gifting strategy — especially if you want to transfer wealth efficiently while minimizing future estate tax exposure. One of the simplest and most powerful tools available is the gift tax annual exclusion. In 2025, the exclusion amount is $19,000 per recipient. (The amount remains the same for 2026.)

Be aware that you need to use your annual exclusion by December 31. The exclusion doesn’t carry over from year to year. For example, if you don’t make an annual exclusion gift to your granddaughter this year, you can’t add the unused 2025 exclusion to the 2026 exclusion to make a $38,000 tax-free gift to her next year.

How can you leverage the annual exclusion?

Making annual exclusion gifts is an easy way to reduce your potential estate tax liability. For example, let’s say that you have four adult children and eight grandchildren. In this instance, you may give each family member up to $19,000 tax-free by year end, for a total of $228,000 ($19,000 × 12).

Furthermore, the gift tax annual exclusion is available to each taxpayer. If you’re married and your spouse consents to a joint gift, also called a “split gift,” the exclusion amount is effectively doubled to $38,000 per recipient for 2025 and 2026.

Bear in mind that split gifts and large gifts trigger IRS reporting responsibilities. A gift tax return is required if you exceed the annual exclusion amount or you give joint gifts with your spouse. Unfortunately, you can’t file a “joint” gift tax return. In other words, each spouse must file an individual gift tax return for the year in which they both make gifts.

Also, beware that some types of gifts aren’t eligible for the annual exclusion. For example, gifts must be of a “present interest” to qualify.

What’s the lifetime gift tax exemption?

If you make gifts in excess of the annual exclusion amount (or gifts ineligible for the exclusion), you can apply your lifetime gift and estate tax exemption. For 2025, the exemption is $13.99 million. The One Big Beautiful Bill Act permanently increases the exemption amount to $15 million beginning in 2026, indexing it for inflation after that.

Note: Any gift tax exemption used during your lifetime reduces the estate tax exemption amount available at death.

Are some gifts exempt from gift tax?

Yes. These include gifts:

From one spouse to the other (as long as the recipient spouse is a U.S. citizen),
To a qualified charitable organization,
Made directly to a health care provider for medical expenses, and
Made directly to qualifying educational institution for a student’s tuition.

For example, you might pay the tuition for a grandchild’s upcoming school year directly to the college. The gift won’t count against the annual exclusion or your lifetime exemption.

Review your estate plan before making gifts

If you’re considering year-end giving, it may be helpful to review your overall estate plan and determine how annual exclusion gifts can support your long-term goals. We can help you identify which assets to give, ensure proper documentation and integrate gifting into your broader wealth transfer strategy.

Unanticipated crises can threaten even the most well-run company. And the risk is often greater for small to midsize businesses where the owner wears many hats. That’s why your company needs an emergency succession plan.

Unlike a traditional succession plan — which focuses on the long-term and is certainly important, too — an emergency succession plan addresses who’d take the helm tomorrow if you’re suddenly unable to run the business. Its purpose is to clarify responsibilities, preserve operational continuity and reassure key stakeholders.

Naming the right person

When preparing for potential disasters in the past, you’ve probably been urged to devise contingency plans to stay operational. In the case of an emergency succession plan, you need to identify contingency people.

Larger organizations may have an advantage here. After all, a CFO or COO may be able to temporarily or even permanently replace a CEO relatively easily. For small to midsize companies, the challenge can be greater — particularly if the owner is heavily involved in retaining key customers or bringing in new business.

For this reason, an emergency succession plan should name someone who can credibly step into the leadership role if you become seriously ill or otherwise incapacitated. Look to a trusted individual whom you expect to retain long-term and who has the skills and personality to stabilize the company during a difficult time.

After you identify this person, consider the “domino effect.” That is, who’ll take on your emergency successor’s role when that individual is busy running the company?

Empowering your pick

After choosing an emergency successor, meet with the person to discuss the role in depth. Listen to any concerns and take steps to alleviate them. For instance, you may need to train the individual on certain duties or allow the person to participate in executive-level decisions to get a feel for running the business.

Just as important, ensure your emergency successor has the power and access to act quickly. This includes:

Signatory authority for bank accounts,
Access to accounting and payroll systems, and
The ability to execute contracts and approve expenditures.

Updating company governance documents to reflect temporary leadership authority is a key step. Be sure to ask your attorney for guidance.

Centralizing key information

It’s also critical to document the financial, operational and administrative information your emergency successor will rely on. This includes maintaining a secure, centralized location for key records such as:

Banking credentials,
Vendor and customer contracts,
Payroll records and procedures,
Human resources data,
Tax filings and financial statements, and
Login details for essential systems.

Without this documentation, even the most capable interim leader may struggle to keep the business functioning smoothly.

Also, ensure your successor will have access to insurance records. Review your coverage to verify it protects the company financially in the event of a sudden transition. Key person insurance, disability buyout policies, and the structure of ownership or buy-sell agreements should align with your emergency succession plan’s objectives.

Getting the word out

A traditional succession plan is usually kept close to the vest until it’s fully formulated and nearing execution. An emergency succession plan, however, must be transparent and communicated as soon as possible.

When ready, inform your team about the plan and how it will affect everyone’s day-to-day duties if executed. In addition, develop a strategy for communicating with customers, vendors, lenders, investors and other stakeholders.

Acting now

If you haven’t created an emergency succession plan, year end may be a good time to get started. Already have one? Be sure to review it at least annually or whenever there are significant changes to the business. We’d be happy to help you evaluate areas of financial risk, better document internal controls and strengthen the processes that will keep your company moving forward — even in the face of the unexpected.

Choosing the right bookkeeper is one of the most important staffing decisions your business will make. A skilled bookkeeper maintains accurate financial records, manages cash flow, and ensures compliance with accounting and tax requirements. But finding the right person can be challenging, especially in today’s competitive job market. Whether you’re replacing a long-time team member or hiring for the first time, here are some key factors to consider when interviewing candidates.

Education and experience

A good starting point is evaluating each candidate’s educational background. Some bookkeepers have degrees in accounting, finance or business, while others have completed bookkeeping training programs or earned software certifications. Advanced training isn’t required, but it can demonstrate professionalism and a commitment to maintaining current skills.

Experience and up-to-date accounting knowledge also matter. Most small businesses benefit from hiring someone with several years of bookkeeping experience, ideally in a similar industry or in a business of comparable complexity. Familiarity with U.S. Generally Accepted Accounting Principles and applicable tax laws is valuable, even if a candidate isn’t a formally trained accountant. Because accounting and tax rules change frequently, you’ll want someone who stays current on the latest developments.

Technical skills

Modern bookkeepers rely heavily on technology. Ask candidates about their experience with your specific accounting program and related tools, such as payroll systems, tax software, budgeting applications, artificial intelligence tools and spreadsheet programs.

If you’re open to changing systems, experienced bookkeepers can often recommend software solutions that improve efficiency and visibility. A bookkeeper’s ability to adapt to new technology or automate manual processes is often just as valuable as his or her ability to keep the books balanced.

Compliance awareness is another important factor. Many bookkeepers manage or assist with payroll filings, sales tax reporting, Form 1099 preparation and other compliance tasks. Even if you rely on a CPA firm for final tax returns, your bookkeeper’s understanding of the underlying rules drives the work’s accuracy and timeliness. Someone who’s handled these responsibilities in previous roles will likely require significantly less training and supervision.

Oversight and planning abilities

Strong bookkeepers do more than record transactions — they can also help streamline daily operations. Ask candidates about their experience closing the books each month, preparing timely financial statements, reconciling accounts, minimizing workflow bottlenecks and supporting audit requests.

Some bookkeepers also take on higher-level financial responsibilities. For instance, they may prepare budgets, forecasts or weekly management summaries. These skills can be particularly valuable because they may help relieve you of some strategic planning tasks and provide a sounding board for major business decisions. Some candidates may even have training in forensic accounting, which you can leverage to tighten internal controls and reduce fraud risks.

Soft skills

Technical skills are only part of the hiring equation. A bookkeeper works with sensitive financial data, so trustworthiness, confidentiality and sound judgment are essential.

A bookkeeper also interacts with vendors, employees, customers and your outside accounting firm, so strong communication and collaboration skills matter. Consider whether candidates can explain financial concepts clearly, are organized and proactive, and maintain professionalism. Discuss how they’ve handled reporting discrepancies or audit adjustments in previous roles. You might even present a recent accounting challenge from your business and ask how they’d address it. When assessing competency, you may find that a candidate’s problem-solving approach often reveals as much as his or her resumé.

Long-term potential

Even the most experienced bookkeeper may struggle if their working style doesn’t align with your business or mesh well with your existing staff. The ideal candidate will demonstrate leadership qualities, a willingness to take initiative and a desire to grow with your company.

When searching for the right candidate for this critical position, a thoughtful hiring process can prevent costly turnover, reporting errors and frustration down the road. In addition to helping brainstorm questions and referring qualified candidates, we can temporarily handle your bookkeeping tasks. Contact us for guidance during your search.

The word “affordability” is getting a lot of play in the news and elsewhere these days. But if you’re an employer that sponsors a health insurance plan, you may already be familiar with the concept in a more specific sense.

Under the Affordable Care Act (ACA), applicable large employers (ALEs) must offer full-time employees health coverage that meets the law’s “affordability” standards. With updated inflation-adjusted thresholds taking effect in 2026, now’s a good time to revisit the rules and determine what the upcoming year’s numbers may mean for your organization.

Employer shared responsibility

For ACA purposes, an employer’s size is determined annually based on its average number of employees in the previous year. Generally, if your organization had an average of 50 or more full-time or full-time equivalent employees during the previous calendar year, you’ll be classified as an ALE for the current year. A full-time employee is one who averages at least 30 hours of service per week.

Under the ACA’s employer shared responsibility provision, ALEs must offer minimum essential coverage that’s affordable and provides minimum value to full-time employees (or equivalents) and their dependents. Affordability is measured using an annually indexed percentage of an employee’s household income. An ALE may be penalized if at least one full-time employee receives a premium tax credit for buying individual coverage through a Health Insurance Marketplace (commonly referred to as an “exchange”) and it fails the affordability or minimum value tests.

Premium tax credit

It’s worth noting that the enhanced premium tax credit rules — originally expanded under the American Rescue Plan Act (ARPA) and later extended by the Inflation Reduction Act (IRA) — are set to expire after 2025. Unless Congress acts, the Marketplace subsidies available to employees and their families will shrink substantially in 2026. Although this doesn’t change an employer’s ACA responsibilities, it may affect the appeal of Marketplace coverage compared with your organization’s health insurance plan.

Under the ACA’s original framework, eligibility for a premium tax credit is limited to taxpayers with household incomes between 100% and 400% of the federal poverty line who buy coverage through a Marketplace. The ARPA temporarily removed the upper-income limit and increased the credit by lowering the percentage of household income individuals are expected to contribute. However, if ARPA and IRA enhancements expire as scheduled, the ACA’s original premium tax credit caps and formulas will return.

Next year’s numbers

For plan years beginning in 2026, the required contribution percentage used to determine whether employer-sponsored health coverage is affordable will increase from the 9.5% statutory baseline to 9.96% (up from 9.02% for 2025 plan years). This percentage determines the maximum amount an eligible employee can be required to pay toward the employee-only premium for the employer’s lowest-cost plan providing minimum value.

The ACA’s employer shared responsibility penalty amounts for ALEs have also been indexed for inflation. The penalty for offering coverage deemed unaffordable or that fails to provide minimum value will increase to $5,010 per applicable employee for 2026 plan years (up from $4,350 for 2025). Meanwhile, the separate “no offer” penalty — triggered when an ALE fails to offer coverage to at least 95% of full-time employees — will rise to $3,340 per applicable employee for 2026 plan years (up from $2,900 for 2025).

Compliant and competitive

Rising affordability thresholds, shifting Marketplace subsidies and increased penalty amounts could all potentially affect your organization’s benefits strategy and future decision-making. We can help you test affordability, model scenarios and ensure your plan remains both compliant and competitive in the years ahead.

Year-round tax planning generally produces the best results, but there are some steps you can still take in December to lower your 2025 taxes. Here are six to consider:

1. Postpone invoicing. If your business uses the cash method of accounting and it would benefit from deferring income to next year, wait until early 2026 to send invoices.

2. Prepay expenses. A cash-basis business may be able to reduce its 2025 taxes by prepaying certain 2026 expenses — such as lease payments, insurance premiums, utility bills, office supplies and taxes — before the end of the year. Many expenses can be deducted even if paid up to 12 months in advance.

3. Buy equipment. Take advantage of 100% bonus depreciation and Section 179 expensing to deduct the full cost of qualifying equipment or other fixed assets. Under the One Big Beautiful Bill Act, 100% bonus depreciation is back for assets acquired and placed in service after January 19, 2025. And the Sec. 179 expensing limit has doubled, to $2.5 million for 2025. But remember that the assets must be placed in service by December 31 for you to claim these breaks on your 2025 return.

4. Use credit cards. What if you’d like to prepay expenses or buy equipment before the end of the year, but you don’t have the cash? Consider using your business credit card. Generally, expenses paid by credit card are deductible when charged, even if you don’t pay the credit card bill until next year.

5. Contribute to retirement plans. If you’re self-employed or own a pass-through business — such as a partnership, S corporation or, generally, a limited liability company — one of the best ways to reduce your 2025 tax bill is to increase deductible contributions to retirement plans. Usually, these contributions must be made by year-end. But certain plans — such as SEP IRAs — allow your business to make 2025 contributions up until its tax return due date (including extensions).

6. Qualify for the pass-through deduction. If your business is a sole proprietorship or pass-through entity, you may be able to deduct up to 20% of qualified business income (QBI). But if your 2025 taxable income exceeds $197,300 ($394,600 for married couples filing jointly), certain limitations kick in that can reduce or even eliminate the deduction. One way to avoid these limitations is to reduce your income below the threshold — for example, by having your business increase its retirement plan contributions.

Most of these strategies are subject to various limitations and restrictions beyond what we’ve covered here. Please consult us before implementing them. We can also offer more ideas for reducing your taxes this year and next.

The “fraud triangle” is a three-legged model that explains the generally required conditions for a worker to commit occupational fraud: 1) incentive, 2) opportunity and 3) rationalization. Twenty years ago, fraud professionals expanded the triangle to include another leg — capability — and the “fraud diamond” was born. Since then, the diamond framework has gained considerable support among forensic accountants. Understanding its principles can also help business owners prevent financial crimes in their companies.

From triangle to diamond

The triangle’s basic conditions are simple to unpack. Incentive refers to the motivations that fraud perpetrators experience. They can be personal (such as debt, addiction or a costly lifestyle) or professional (such as pressure to meet certain sales goals or revenue targets). Opportunity generally means that fraudsters believe they can get away with committing crimes. Poor internal controls, weak management oversight and failure to audit may be to blame. Rationalization is the perpetrator’s mental justification. The employee might feel underpaid or mistreated, believe that “everybody does it” or think the employer can afford the financial loss.

Capability, introduced in the diamond model, represents a broader set of material and psychological conditions. It dictates that an individual capable of fraud is typically someone with all or most of the following:

An elevated job position or access to financial functions,
Intelligence,
Confidence,
Resilience to stress and guilt,
Authority to lead and even coerce others, and
Ability to lie and conceal activities.

As you probably recognize, many qualities that can make someone an effective thief can also make that person a successful executive.

Don’t let opportunity knock

Several studies have shown that fraud professionals using the diamond model are better at predicting workplace fraud than those using the triangle framework alone. Because fraud is essentially a people problem, you should carefully screen new hires and get to know employees on a personal level to assess their capacity to commit fraud. That said, it’s important to recognize that most capable individuals don’t ever steal or falsify data — even if other factors would seem to encourage it.

Some capability traits — such as intelligence, confidence and resilience — generally are desirable qualities in an employee. So perhaps a better way for business owners to prevent fraud is to concentrate on opportunity factors. Make financial crimes more difficult to commit by implementing and consistently following robust internal controls that address your organization’s greatest vulnerabilities. This includes ensuring that managers are properly trained and provide adequate employee oversight, and that audits are conducted regularly.

Partner with us

It’s essential to identify and strengthen weaknesses in your company’s defenses and investigate any suspicious behaviors. Contact us to help protect your business from fraud.

More than a century ago, Yeo & Yeo’s founders laid the groundwork for a culture of community service. Today, their legacy continues to thrive through the efforts of our people, including the Yeo Young Professionals (YYP) group. Each year, the YYPs lead a firm-wide service project, uniting the firm to raise funds and volunteer for a designated nonprofit organization. By taking the lead in organizing events and rallying support, these emerging leaders demonstrate that service is a powerful avenue for personal and professional growth.

This year, our YYP service project supported the Greater Michigan Chapter of the Alzheimer’s Association. Professionals across our Yeo & Yeo companies and offices participated in Walks to End Alzheimer’s and FUNdraising initiatives, raising more than $3,400 for the cause. Combined with the $9,500 allocated by the Yeo & Yeo Foundation, the firm’s total contribution reached $13,370 in support of Alzheimer’s care and research.

“Alzheimer’s has unfortunately impacted so many of our lives,” said Michael Wilson II, CPA, Manager and Foundation Board Young Professionals Service Chair. “This firm-wide initiative gave us a chance to acknowledge those experiences while doing something positive together. It was incredible to see our people unite around such an important cause.”

Yeo & Yeo’s dedication to giving back is more than a tradition—it is a defining part of our company’s culture and identity. Established in 2018, the Yeo & Yeo Foundation is an employee-run organization dedicated to supporting charitable causes throughout Michigan. Since its inception, the Foundation has allocated funds to support the YYP service project, benefiting organizations such as the American Cancer Society, Special Olympics Michigan, and Habitat for Humanity.

This Giving Tuesday, and every day, we are proud to give our time, talent, and resources to uplift others. Beyond the Foundation’s grants and service projects, Yeo & Yeo professionals serve on numerous boards and committees throughout the state, lending their expertise to nonprofits that strengthen our communities. Additionally, through our Nonprofit Services Group, we help nonprofit organizations thrive by providing specialized accounting, audit, HR, technology, and advisory services so they can focus on advancing their missions.

Whether through volunteering, professional service, or charitable giving, the Yeo & Yeo team continues to demonstrate that community building is at the heart of who we are. This year’s YYP service project is one more example of that commitment—and a reminder that when we come together, actions create lasting impact.

As year-end approaches, it’s important for employers to review upcoming payroll and compliance changes that could affect their reporting, employee communication, and filing requirements in 2025. Following are three major updates from the IRS that all businesses—large and small—should be aware of as they prepare for W-2s, ACA filings, and electronic reporting.

1. Overtime Reporting on Form W-2: Transition Relief for 2025

The IRS has issued transition relief for tax year 2025, meaning employers are not required to separately report overtime pay on Form W-2 this year. However, employees may still need this information to claim deductions under the One Big Beautiful Bill Act (OBBBA).

Employer Options for 2025

Report overtime in Box 14 of Form W-2
Pros: Helps employees claim deductions easily; proactive for future compliance.
Cons: Requires payroll system updates; adds administrative steps.
Provide a separate year-end statement to employees
Pros: Gives employees clear documentation for deductions; flexible format.
Cons: Additional administrative effort; must ensure accuracy.
Do not report overtime separately
Pros: No penalty for 2025; avoids system changes now.
Cons: Employees may lack documentation for deductions; could lead to inquiries.

What Counts as “Qualified” Overtime?

Only the premium portion of overtime required under the Fair Labor Standards Act (FLSA) is deductible. If an employee earns $20/hour and works 50 hours in a week:

Regular pay: 40 × $20 = $800
Overtime pay: 10 × $30 = $300
Qualified deduction: (10 hrs. × $10 premium) = $100

The maximum annual deduction is $12,500 for single filers or $25,000 for joint filers. Amounts phase out at higher income levels.

2. Electronic Filing Threshold: 10-Return Rule

Beginning last year, the IRS significantly lowered the threshold for mandatory electronic filing. Employers who file 10 or more combined information returns must file electronically—including W-2s, 1099s, 1098s, and other similar forms.

Action Steps for Employers

Count all information returns across all categories.
Register for an IRS-approved e-filing system:
- SSA Business Services Online
- IRS IRIS Portal
Obtain a Transmitter Control Code (TCC) if needed.

If your organization has traditionally filed paper returns, now is the time to ensure your systems and processes support electronic filing ahead of 2025 deadlines.

3. Affordable Care Act Filing Requirements & ALE Status Determination

If your organization averaged 50 or more full-time employees and full-time equivalents (FTEs) in 2024, you are considered an Applicable Large Employer (ALE) for 2025.

ALE Responsibilities Include:

Offering affordable, minimum essential health insurance coverage to full-time employees and dependents
Filing Forms 1094-C and 1095-C with the IRS
Providing Form 1095-C to employees

Calculating ALE Status

Count all full-time employees and FTEs each month of 2024.
Add them together.
Divide by 12. Employees working 30+ hours/week or 130+ hours/month count as full-time.

This calculation is critical—incorrectly assuming you are not an ALE could lead to penalties.

Next Steps for Employers

As you prepare for year-end filings, consider the following:

Decide if and how you will provide overtime information to employees.
Confirm you are set up for the required electronic filing.
Determine 2025 ALE status and begin preparing 1094/1095 forms if required.

Yeo & Yeo’s payroll and compliance professionals are here to assist with your year-end reporting needs.

Download the 2026 Payroll Brief

For a deeper look at payroll updates and year-end requirements, download Yeo & Yeo’s 2026 Payroll Planning brief.

A living trust is one of the most versatile estate planning tools available. It offers a streamlined way to manage and transfer assets while maintaining privacy and control. Unlike a traditional will, a living trust allows your assets to pass directly to your beneficiaries without going through probate. By placing assets into the trust during your lifetime, you create a clear plan for how they should be distributed, and you empower a trustee to manage them smoothly if you become incapacitated. This combination of efficiency and continuity can provide significant peace of mind for you and your family.

However, even the most carefully created living trust can’t automatically account for every asset you acquire later or forget to transfer into it. That’s where a pour-over will becomes essential.

Defining a pour-over will

A pour-over will acts as a safety net by directing any assets not already held in your living trust to be “poured over” into the trust at your death. Your trustee then distributes the assets to your beneficiaries under the trust’s terms. Although these assets may still pass through probate, the pour-over will ensures that everything ultimately ends up under the trust’s umbrella, following the same instructions and protections you’ve already put in place.

This setup offers the following benefits:

Convenience. It’s easier to have one document controlling the assets than it is to “mix and match.” With a pour-over will, it’s clear that everything goes to the trust, and then the trust document determines who gets what. That, ideally, makes it easier for the executor and trustee charged with wrapping up the estate.

Completeness. Generally, everyone maintains some assets outside of a living trust. A pour-over will addresses any items that have fallen through the cracks or that have been purposely omitted.

Privacy. In addition to conveniently avoiding probate for the assets that are titled in the trust’s name, the setup helps maintain a level of privacy that isn’t available when assets pass directly through a regular will.

Understanding the roles of your executor and trustee

Your executor must handle specific bequests included in the will, as well as the assets being transferred to the trust through the pour-over provision before the trustee takes over. (Exceptions may apply in certain states for pour-over wills.) While this may take months to complete, property transferred directly to a living trust can be distributed within weeks of a person’s death.

Therefore, this technique doesn’t avoid probate completely, but it’s generally less costly and time consuming than usual. And, if you’re thorough with the transfer of assets made directly to the living trust, the residual should be relatively small.

Note that if you hold back only items of minor value for the pour-over part of the will, your family may benefit from an expedited process. In some states, your estate may qualify for “small estate” probate, often known as “summary probate.” These procedures are easier, faster and less expensive than regular probate.

After the executor transfers the assets to the trust, it’s up to the trustee to do the heavy lifting. (The executor and trustee may be the same person, and, in fact, they often are.) The responsibilities of a trustee are similar to those of an executor, with one critical difference: They extend only to the trust assets. The trustee then adheres to the terms of the trust.

Creating a coordinated estate plan

When used together, a living trust and a pour-over will create a comprehensive estate planning structure that’s both flexible and cohesive. The trust handles the bulk of your estate efficiently and privately, while the pour-over will ensures that no assets are left out or distributed according to default state laws. This coordinated approach helps maintain consistency in how your estate is managed and can reduce stress and confusion for your loved ones.

Because living trusts and pour-over wills involve legal considerations, we recommend working with an experienced estate planning attorney to finalize the documents. We can assist you with the related tax and financial planning implications. Contact us to learn more.

As a small to midsize business grows, demands on its time, talent and resources inevitably expand right along with it. Many business owners reach a point where continuing to do everything in-house — or even themselves — begins to slow progress or expose the company to unnecessary risk. Have you reached this point yet? If so, or even if you’re getting close, outsourcing could be a smart move.

Common candidates

Many business activities can be outsourced. The key is identifying functions that, if handled by an external provider, would improve efficiency, strengthen compliance, and give you and your team more time to focus on revenue-generating work. Here are some common candidates:

Accounting and financial reporting. A reputable provider can manage your books, collect payments, pay invoices and keep accounting technology up to date. It should also be able to prepare financial statements that meet the standards expected by lenders, investors and other outside parties.

Customer service. This may seem an unlikely candidate because you might believe that someone must work for your business to truly represent it. But that’s not necessarily true. Internal customer service departments often have high turnover rates, which drives up costs and reduces service quality. Outsourcing to a provider with a more stable, well-trained team can improve both customer satisfaction and operational consistency.

Information technology (IT). Bringing in an outside firm or consultant to manage your IT needs can provide significant benefits. For starters, you’ll be able to better focus on your mission without the constant distraction of changing technology. Also, a provider will stay current on the best hardware and software for your business, as well as help you securely access, store and protect your data.

Payroll and human resources (HR). These functions are governed by complex regulations that change frequently — as does the necessary software. A qualified vendor can help your business comply with current legal requirements while giving you and your employees a better, more secure platform for accessing payroll and HR information.

Downsides to watch out for

Naturally, outsourcing comes with potential downsides. You’ll need to spend time and resources researching and vetting providers. Then each engagement will involve substantial ongoing expenses.

You’ll also have to place considerable trust in providers — especially in today’s environment, where data breaches are common and cybersecurity is critical. Finally, even a solid outsourcing arrangement requires ongoing communication and management to maintain a productive relationship.

Not a one-size-fits-all solution

Every business owner must carefully consider when to outsource, which services are worth the money and how to measure return on investment over time. If you’d like help evaluating your options or better understanding the financial and tax implications of outsourcing, contact us.

Whether you’re selling your business or acquiring another company, the tax consequences can have a major impact on the transaction’s success or failure. So if you’re thinking about a merger or acquisition, you need to consider the potential tax impact.

Asset sale or stock sale?

From a tax standpoint, a transaction can basically be structured as either an asset sale or a stock sale. In an asset sale, the buyer purchases just the assets of a business. This may happen if a buyer only wants specific assets or product lines. And it’s the only option if the target business is a sole proprietorship or a single-member limited liability company (LLC) that’s treated as a sole proprietorship for tax purposes.

Alternatively, if the target business is a corporation, a partnership or an LLC that’s treated as a partnership for tax purposes, the buyer can directly purchase the seller’s stock or other form of ownership interest. Whether the business being purchased is a C corporation or a pass-through entity (that is, an S corporation, partnership or, generally, an LLC) makes a significant difference when it comes to taxes.

The flat 21% corporate federal income tax rate under the Tax Cuts and Jobs Act (TCJA), which the One Big Beautiful Bill Act (OBBBA) didn’t change, makes buying the stock of a C corporation somewhat more attractive. Why? The corporation will pay less tax and generate more after-tax income. Plus, any built-in gains from appreciated corporate assets will be taxed at a lower rate when they’re eventually sold.

The TCJA’s reduced individual federal tax rates, which have been made permanent by the OBBBA, may also make ownership interests in S corporations, partnerships and LLCs more attractive than they once were. This is because the passed-through income from these entities will be taxed at the TCJA’s lower rates on the buyer’s personal tax return. The buyer may also be eligible for the TCJA’s qualified business income deduction, which was also made permanent by the OBBBA.

Note: In some circumstances, a corporate stock purchase can be treated as an asset purchase by making a Section 338 election. Contact us for more information. We’d be pleased to help determine if this would be beneficial in your situation.

Seller or buyer?

Sellers generally prefer stock sales for tax and nontax reasons. One of their main objectives is to minimize the tax bill from a sale. That can usually be best achieved by selling ownership interests in the business (corporate stock or interests in a partnership or LLC) as opposed to selling the business’s assets.

With a sale of stock or other ownership interest, liabilities generally transfer to the buyer and any gain on sale is typically treated as lower-taxed long-term capital gain (assuming the ownership interest has been held for more than one year).

Buyers, however, usually prefer to purchase assets. Generally, a buyer’s main objective is to generate enough cash flow from an acquired business to pay any acquisition debt and provide an acceptable return on the investment. Therefore, buyers want to limit exposure to undisclosed and unknown liabilities and minimize taxes after the deal closes.

A buyer can step up (increase) the tax basis of purchased assets to reflect the purchase price. Stepped-up basis lowers taxable gains when certain assets, such as receivables and inventory, are sold or converted into cash. It also increases depreciation and amortization deductions for qualifying assets.

Keep in mind that other factors, such as employee benefits, can cause unexpected tax issues when merging with or acquiring a business.

We can help

Selling the business you’ve spent years building or becoming a first-time business owner by buying an existing business might be the biggest financial move you ever make. We can assess the potential tax consequences before you start negotiating to help avoid unwelcome tax surprises after a deal is signed. Contact us to get started.

With Notice 2025–67, the IRS has issued its 2026 inflation-adjusted retirement plan contribution limits. Although the changes are more modest than in recent years, most retirement-plan-related limits will still increase for 2026. Depending on your plan, these adjustments may provide extra room to boost your retirement savings.

Type of limitation	2025 limit	2026 limit
Elective deferrals to 401(k), 403(b) and 457 plans	$23,500	$24,500
Annual benefit limit for defined benefit plans	$280,000	$290,000
Contributions to defined contribution plans	$70,000	$72,000
Contributions to SIMPLEs	$16,500	$17,000
Contributions to traditional and Roth IRAs	$7,000	$7,500
Catch-up contributions to 401(k), 403(b) and 457 plans for those age 50 or older*	$7,500	$8,000
Catch-up contributions to 401(k), 403(b) and 457 plans for those age 60, 61, 62 or 63*	$11,250	$11,250
Catch-up contributions to SIMPLE plans for those age 50 or older	$3,500	$4,000
Catch-up contributions to SIMPLE plans for those age 60, 61, 62 or 63	$5,250	$5,250
Catch-up contributions to IRAs for those age 50 or older	$1,000	$1,100
Compensation for benefit purposes for qualified plans and SEPs	$350,000	$360,000
Minimum compensation for SEP coverage	$750	$800
Highly compensated employee threshold	$160,000	$160,000

*Starting in 2026, the SECURE 2.0 Act requires the catch-up contributions of higher-income taxpayers to be treated as post-tax Roth contributions. Generally for 2026, the requirement will apply to taxpayers who earned more than $150,000 during the prior year. However, new final regulations state that the deadline for plan amendments to implement this change is December 31, 2026. So there might not be any adverse consequences for plans that continue to allow non-Roth account catch-up contributions for higher-income taxpayers in 2026.

Your modified adjusted gross income (MAGI) may reduce or even eliminate your ability to take advantage of IRAs. Fortunately, IRA-related MAGI phaseout range limits will all increase for 2026:

Traditional IRAs. MAGI phaseout ranges apply to the deductibility of contributions if a taxpayer (or his or her spouse) participates in an employer-sponsored retirement plan:

For married taxpayers filing jointly, the phaseout range is specific to each spouse based on whether he or she is a participant in an employer-sponsored plan:
- For a spouse who participates, the 2026 phaseout range limits will increase by $3,000, to $129,000–$149,000.
- For a spouse who doesn’t participate, the 2026 phaseout range limits will increase by $6,000, to $242,000–$252,000.
For single and head-of-household taxpayers participating in an employer-sponsored plan, the 2026 phaseout range limits will increase by $2,000, to $81,000–$91,000.

Taxpayers with MAGIs in the applicable range can deduct a partial contribution; those with MAGIs exceeding the applicable range can’t deduct any IRA contribution.

But a taxpayer whose deduction is reduced or eliminated can make nondeductible traditional IRA contributions. The $7,500 contribution limit for 2026 (plus $1,100 catch-up, if applicable, and reduced by any Roth IRA contributions) still applies.

Nondeductible traditional IRA contributions may also be beneficial if your MAGI is too high for you to contribute (or fully contribute) to a Roth IRA.

Roth IRAs. Whether you participate in an employer-sponsored plan doesn’t affect your ability to contribute to a Roth IRA, but MAGI limits may reduce or eliminate your ability to contribute:

For married taxpayers filing jointly, the 2026 phaseout range limits will increase by $6,000, to $242,000–$252,000.
For single and head-of-household taxpayers, the 2026 phaseout range limits will increase by $3,000, to $153,000–$168,000.

You can make a partial contribution if your MAGI falls within the applicable range, but no contribution if it exceeds the top of the range.

(Note: Married taxpayers filing separately are subject to much lower phaseout ranges for traditional and Roth IRAs.)

When reviewing your retirement plan, be sure to take these 2026 contribution limits into account. We can help you review your retirement plan and make any necessary revisions.

Managing people is fundamental to being an employer. And while doing so is often rewarding, it can also be difficult. Even the strongest teams may occasionally include employees who consistently perform poorly, engage in unacceptable behavior or are simply a mismatch for their positions. With the right approach, you can address problems and reduce your financial and legal risks.

Considering your options

If a staff member isn’t working out, you have three basic options. First, you can retrain the person under a formal performance improvement plan (PIP). Bear in mind, though, that issues related to misconduct, such as harassment or safety violations, may entail disciplinary action outside of a typical PIP’s scope. Second, you could transfer the individual to a different, more suitable job. And third, depending on the circumstances, termination may be permissible under applicable laws.

None of these options is easy, but the last one likely presents the greatest immediate risk. Taking an adverse employment action, such as firing, could lead to a costly lawsuit. Meanwhile, finding a replacement will consume time, money and resources. Legal guidance is essential.

Firing an employee also opens the door to unemployment claims, which can affect your unemployment tax rate. Even if termination is for cause, the employer must respond to the state agency and may need to provide documentation that proves misconduct to deny benefits. Poor performance alone usually does not disqualify someone from receiving unemployment benefits.

Confronting a staff member about troublesome performance or behavior is typically awkward and potentially contentious. And getting the individual to change for the better can take a while. However, never let substandard performance or inappropriate behavior slide. Doing so sends the wrong message to everyone and could lead to significant declines in productivity and work quality — and even disruptive or dangerous incidents. Of course, you should avoid knee-jerk reactions as well.

Conducting an investigation

Before doing anything, investigate what’s going on. Did the person materially misrepresent skills or experience during the hiring process? Have the employee’s actions clearly been unprofessional, unethical or even potentially dangerous? If so, there may be grounds for termination.

However — and this is the tough part — you also need to determine whether your organization bears some responsibility for the situation. Many employers have room for improvement in onboarding and training. Did your hiring staff clearly communicate the position’s duties and performance expectations? Was the employee warmly welcomed, thoroughly introduced to the organization, properly trained and provided the tools (such as adequate workspace and equipment) to perform well?

Ultimately, you want to identify the source of the problem. Sometimes the most direct route to resolution is simply to ask. Engage in an open, good-faith dialogue with the employee in which someone, usually a supervisor at first, states your organization’s concerns and openly listens to the staff member’s point of view.

Taking a measured approach

If a simple conversation (or two) fails to set things right, you’ll likely need to undertake a lengthier process to either get a problematic employee back on track or bid the person adieu. Work with your attorney to develop formal policies and procedures that require supervisors to:

Consult HR or legal advisors before formal warnings or termination discussions,
Document the employee’s mistakes or wrongdoings, including dates and times, over a significant period,
Give an initial verbal warning in private, avoiding anger even if the individual responds emotionally,
Use neutral, professional language, avoiding statements that could imply bias, retaliation or guarantees,
Stick to documented facts and organizational policy,
Be as specific as possible about what’s wrong and what needs to change, and
Obtain reasonable assurance that the employee understands the concerns and how to fix them.

Employers can strengthen their legal basis for termination by following a measured, documented approach. For performance-related issues, developing a formal PIP in accordance with industry standards and best practices is generally advised. However, again, serious misconduct usually warrants disciplinary action administered under proper procedures rather than a PIP.

Seeking guidance

If you have any doubts about how to handle a problematic employee, seek professional guidance from your attorney to ensure compliance with employment laws. Meanwhile, contact us for help evaluating the financial impact of turnover and unemployment claims, as well as developing strategies to maintain a productive, compliant workplace.

If your business sponsors a 401(k) plan for employees, you know it’s a lot to manage. But manage it you must: Under the Employee Retirement Income Security Act (ERISA), you have a fiduciary duty to act prudently and solely in participants’ interests.

Once a plan is launched and operational, it may seem to run itself. However, problems can arise if you fail to actively oversee administration — even when a third-party administrator is involved. With 2025 winding down and a new year on the horizon, now may be a good time to review your plan’s administrative processes and fiduciary procedures.

Investment selection and management

Study your plan’s investment choices to determine whether the selections available to participants are appropriate. Does the lineup offer options along the risk-and-return spectrum for workers of all ages? Are any premixed funds, which are based on age or expected retirement date, appropriate for your employee population?

If the plan includes a default investment for participants who haven’t directed their investment contributions, look into whether that option remains appropriate. In the event your plan doesn’t have a written investment policy or doesn’t use an independent investment manager to help select and monitor investments, consider incorporating these risk management measures.

Should you decide to engage an investment manager, however, first implement formally documented procedures for selecting and monitoring this advisor. Consult an attorney for assistance. If you’re already using an investment manager, reread the engagement documentation to make sure it’s still accurate and comprehensive.

Fee structure

The fee structures of 401(k) plans sometimes draw media scrutiny and often aggravate employees who closely follow their accounts. Calculate the amount of current participant fees associated with your plan’s investments and benchmark them against industry standards.

In addition, examine the plan’s administrative, recordkeeping and advisory fees to understand how these costs are allocated between the business and participants. Establish whether any revenue-sharing arrangements are in place and, if so, assess their transparency and oversight.

It’s also a good idea to compare your total plan costs to those of similarly sized plans. This way, you can determine whether your overall fee structure remains competitive and reasonable under current market conditions.

Third-party administrator

Even if your third-party administrator handles day-to-day tasks, it’s important to periodically verify that their internal controls, cybersecurity practices and data-handling procedures meet current standards. Confirm that the administrator:

Maintains proper documentation,
Follows timely and accurate reporting practices, and
Provides adequate support when compliance questions arise.

A proactive review of their service model can help ensure your business isn’t unknowingly exposed to risks from operational errors, data breaches or outdated administrative practices.

Overall compliance

Some critical compliance questions to consider are:

Do your plan’s administrative procedures comply with current regulations?
If you intend it to be a participant-directed individual account plan, does it follow all the provisions of ERISA Section 404(c)?
Have there been any major changes to other 401(k) regulations recently?

Along with testing the current state of your plan against ERISA requirements, evaluate whether your operational practices align with your plan document — an area where many sponsors stumble. Double-check key items such as contribution timelines, eligibility determinations, vesting schedules and loan administration. Verify that procedures precisely follow the terms of your plan document.

Conducting periodic internal audits can help identify inconsistencies and operational errors before they become costly compliance failures. You might even discover fraudulent activities.

Great power, great responsibility

A 401(k) plan is a highly valuable benefit that can attract job candidates, retain employees and demonstrate your business’s commitment to participants’ financial well-being. However, with this great power comes great responsibility on your part as plan sponsor.

If your leadership team and key staff haven’t reviewed your company’s oversight practices recently, year end may be an ideal time to take stock. We can help you identify plan costs and fees, spot potential compliance gaps, and tighten internal controls.

Planning for the end of life is never easy, but including your funeral and memorial wishes in your estate plan can relieve a major burden from your loved ones. When your family is grieving, decisions about burial or cremation, service preferences, or even the type of obituary you’d like can feel overwhelming. By documenting these choices in advance, you not only help to ensure your wishes are honored but also give your family clarity and comfort.

Express your wishes

First, make your wishes known to family members. This typically includes instructions about where you’re to be buried or cremated, the type of memorial service you prefer (if any), and even the clothing you’ll be buried in. If you don’t have a next of kin or would prefer someone else to be in charge of arrangements, you can appoint another representative.

Be aware that the methods for expressing these wishes vary from state to state. With the help of your attorney, you can include a provision in your will, language in a health care proxy or power of attorney, or a separate form specifically designed for communicating your desired arrangements.

Whichever method you use, it should, at a minimum, state 1) whether you prefer burial or cremation, 2) where you wish to be buried or have your ashes interred or scattered (and any other special instructions), and 3) the person you’d like to be responsible for making these arrangements. Some people also request a specific funeral home.

Weigh your payment options

There’s a division of opinion in the financial community as to whether you should prepay funeral expenses. If you prepay and opt for a “guaranteed plan,” you lock in the prices for the arrangements, no matter how high fees may escalate before death. With a “nonguaranteed plan,” prices aren’t locked in, but the prepayment accumulates interest that may be put toward any rising costs.

When weighing whether to use a prepaid plan, the Federal Trade Commission recommends that you ask the following questions:

What happens to the money you’ve prepaid?
What happens to the interest income on prepayments placed in a trust account?
Are you protected if the funeral provider goes out of business?

Before signing off on a prepaid plan, learn whether there’s a cancellation clause in the event you change your mind.

One alternative that avoids the pitfalls of prepaid plans is to let your family know your desired arrangements and set aside funds in a payable-on-death (POD) bank account. Simply name the person who’ll handle your funeral arrangements as the beneficiary. When you die, he or she will gain immediate access to the funds without the need for probate.

Incorporate your wishes into your estate plan

Thoughtful planning today can provide lasting peace of mind for the people you care about most. Don’t wait to incorporate your wishes into your estate plan — or to update your plan if needed.

The One Big Beautiful Bill Act (OBBBA) shifts the landscape for year-end tax planning. The law has significant implications for some of the most tried-and-true tax-reduction measures. It also creates new opportunities for businesses to reduce their 2025 tax liability before December 31. Here are potentially some of the most beneficial ones.

Investments in capital assets

Thanks to bonus depreciation, businesses have commonly turned to year-end capital asset purchases to cut their taxes. The OBBBA helps make this strategy even more powerful for 2025.

Under the Tax Cuts and Jobs Act (TCJA), 100% first-year bonus depreciation declined by 20 percentage points each year beginning in 2023, falling to 40% in 2025. The OBBBA restores and makes permanent 100% bonus depreciation for qualified new and used assets acquired and placed in service after January 19, 2025. (Qualified purchases made in 2025 on or before January 19 remain subject to the 40% limit.)

The law also boosts the Section 179 expensing election limit for small and midsize businesses to $2.5 million, with the phaseout threshold lifted to $4 million. (Both amounts will be adjusted annually for inflation.)

Most assets eligible for bonus depreciation also qualify for Sec. 179 expensing. But Sec. 179 expensing is allowed for certain expenses not eligible for bonus depreciation — specifically, roofs, HVAC equipment, fire protection and alarm systems, and security systems for nonresidential real property, as well as depreciable personal property used predominantly in connection with furnishing lodging.

Sec. 179 expensing is subject to several limitations that don’t apply to first-year bonus depreciation, especially for S corporations, partnerships and limited liability companies treated as partnerships for tax purposes. So, when assets are eligible for either break, claiming allowable 100% first-year bonus depreciation may be beneficial.

However, Sec. 179 expensing is more flexible — you can take it on an asset-by-asset basis. With bonus depreciation, you have to take it for an entire class of assets (for example, all MACRS 7-year property). Business vehicles are popular year-end purchases to boost depreciation-related tax breaks. They’re generally eligible for bonus depreciation and Sec. 179 expensing, but keep in mind that they’re subject to additional rules and limits. Also, if a vehicle is used for both business and personal use, the associated expenses, including depreciation, must be allocated between deductible business use and nondeductible personal use.

As an added perk, the OBBBA changes the business interest deduction — specifically, the calculation of adjusted taxable income — which could allow you to deduct more interest on capital purchases beginning in 2025.

Pass-through entity tax deduction

Dozens of states enacted pass-through entity tax (PTET) deduction laws in response to the TCJA’s $10,000 limit on the federal deduction for state and local taxes (SALT), also referred to as the SALT cap. The mechanics vary, but the deductions generally let pass-through entities (partnerships, limited liability companies and S corporations) pay an elective entity-level state tax on business income with an offsetting tax benefit for the owners. The organization deducts the full payment as a business expense.

Before year end, it’s important to review whether a PTET deduction is available to you and, if so, whether it’ll make sense to claim it. This can impact other year-end tax planning strategies.

The PTET deduction may be less relevant for 2025 because the OBBBA temporarily boosts the SALT cap to $40,000 (with 1% increases each year through 2029). The higher cap is subject to phaseouts based on modified adjusted gross income (MAGI); when MAGI reaches $600,000, the $10,000 cap applies.

But the PTET deduction may still be worthwhile in some circumstances. It could pay off, for example, if an owner’s MAGI excludes the owner from benefiting from the higher cap or if an owner’s standard deduction would exceed his or her itemized deductions so the owner wouldn’t benefit from the SALT deduction.

By reducing the income passed through from the business, a PTET deduction election could also help an owner reduce his or her liability for self-employment taxes and avoid the 3.8% net investment income tax. Moreover, lower income could unlock eligibility for other tax breaks, such as deductions for rental losses and the Child Tax Credit. Bear in mind, though, that while a PTET deduction could help you qualify for the Section 199A qualified business income (QBI) deduction despite the income limit (see below), it also might reduce the size of the deduction.

QBI deduction

Eligible pass-through entity owners can deduct up to 20% of their QBI, whether they itemize deductions or take the standard deduction. QBI refers to the net amount of income, gains, deductions and losses, excluding reasonable compensation, certain investments and payments to partners for services rendered.

The deduction is subject to limitations based on taxable income and, in some cases, on W-2 wages paid and the unadjusted basis of qualified property (generally, the purchase price of tangible depreciable property held at the end of the tax year). The OBBBA expands the phase-in ranges for those limits so that more taxpayers will qualify for larger QBI deductions beginning in 2026.

In the meantime, you can still take steps to increase your QBI deduction for 2025. For example, if your income might be high enough that you’ll be subject to the W-2 wage or qualified property limit, you could increase your W-2 wages or purchase qualified property. Timing tactics — generally, accelerating expenses into this year and deferring income into 2026 — might also help you avoid income limits on the deduction.

Research and experimental deduction

The OBBBA makes welcome changes to the research and experimental (R&E) deduction. It allows businesses to capitalize domestic Section 174 costs and amortize them over five years beginning in 2025.

It also permits “small businesses” (those with average annual gross receipts of $31 million or less for the previous three tax years) to claim the R&E deduction retroactive to 2022. And businesses of any size that incurred domestic R&E expenses in 2022 through 2024 can elect to accelerate the remaining deductions over either a one- or two-year period.

You don’t necessarily need to take steps before year end to benefit from these changes. But it’s important to consider how claiming larger R&E deductions on your 2025 return could impact your overall year-end planning strategies.

It’s also a good idea to start thinking about how you’ll approach the R&E expense deduction on your 2025 tax return. For example, it might make more sense to continue to amortize your qualified R&E expenses. You also should determine if it would be beneficial to recover remaining unamortized R&E expenses in 2025 or prorate the expenses across 2025 and 2026. And if you’re eligible to claim retroactive deductions, review your R&E expenses for 2022 through 2024 to decide whether it would be beneficial to do so.

Don’t delay

We’ve focused on year-end strategies affected by the OBBBA, but there are also strategies not significantly impacted by it that are still valuable. One example is accelerating deductible expenses into 2025 and deferring income to 2026 (or doing the opposite if you expect to be in a higher tax bracket next year). Another is increasing retirement plan contributions (or setting up a retirement plan if you don’t have one).

Now is the time to execute the last-minute strategies that will trim your business’s 2025 taxes. We can help you identify the ones that fit your situation.

When a new employee joins your organization, most of the attention goes to helping them feel prepared and supported. They get their laptop, email account, and access to the systems needed to do their job. They meet their team, learn the ropes, and start getting comfortable in a new environment.

But while all of that is important, there’s another piece of the onboarding process that’s just as critical—and often overlooked: cybersecurity.

Why the First 90 Days Matter

The first few months of a new hire’s journey are some of the riskiest times for your organization’s data security. Research shows that nearly three-quarters of new employees fall for phishing or social engineering attempts within their first 90 days on the job. New team members are also 44% more likely to click on suspicious links compared to experienced staff, and 45% more likely to fall victim when attackers impersonate company leaders.

Why does this happen? Think about what it’s like to be new. You’re trying to make a good impression, don’t know all the systems and processes yet, and are eager to follow directions. Cybercriminals take advantage of this uncertainty. A message that looks like it’s from the CEO asking for help, or an email that appears to come from HR requesting updated information, can feel legitimate to someone who hasn’t learned what “normal” looks like in your workplace.

That’s why attackers deliberately target new hires. It’s not just bad luck—it’s a strategy.

The Cost of Overlooking Cybersecurity in Onboarding

If a phishing attempt is successful, the consequences can be severe. A single compromised login can open the door to sensitive data, financial loss, or even a full-scale ransomware attack. For small and mid-sized businesses, especially, the impact can be devastating.

And yet, many organizations don’t address cybersecurity until weeks or months after a new employee starts. By then, the riskiest period has already passed.

Training from Day One

The good news is that there are effective ways to reduce these risks. One of the most impactful is incorporating cybersecurity awareness into the onboarding process. Training should begin immediately- on day one rather than waiting until new employees are fully settled.

This training doesn’t need to be complicated. Practical guidance on how to spot phishing emails, what to do if something looks suspicious, and how to report potential issues can go a long way. When combined with phishing simulations tailored to new hires, organizations can create a safe environment for employees to learn and build confidence.

The results speak for themselves. Companies that prioritize security training during onboarding see their phishing risk drop by as much as 30%. That’s a measurable, significant improvement—demonstrating the value of making cybersecurity part of your culture from the beginning.

Technology Plus People

Of course, training is only one piece of the puzzle. Strong security tools—like firewalls, endpoint protection, and email filtering—remain essential. These tools create a baseline of defense against the majority of cyber threats. But no matter how advanced the technology, people will always be the first line of defense.

New employees, in particular, need to be equipped with both knowledge and the confidence to act if something doesn’t seem right. The combination of effective technology and well-prepared employees creates the strongest security posture for your organization.

How Yeo & Yeo Technology Can Help

At Yeo & Yeo Technology, we work with businesses of all sizes to strengthen cybersecurity from every angle. For new employees, that means helping you create onboarding processes that emphasize awareness and resilience from day one. From security awareness training and phishing simulations to advanced cybersecurity solutions, we provide a layered approach designed to protect your people, systems, and data.

Bringing someone new onto your team should be a moment of growth and opportunity—not a moment of added risk. By building cybersecurity into your onboarding process, you can protect your organization while giving employees the confidence to succeed in their new roles.

Information used in this article was provided by our partners at MSP Marketing Edge.

Is it ok to let staff install their own apps on work devices?

Not without approval. Unchecked apps can introduce malware or data leaks.

How often should we test our data backups?

At a minimum, back up a few times a year and check that your backup works weekly. A backup isn’t helpful if it doesn’t restore when you need it.

Can we save money by turning off automatic software updates?

No. It might save a little time now, but it leaves you wide open to attacks fixed by those updates.

Information used in this article was provided by our partners at MSP Marketing Edge.

Is Your Bad IT a Trap?

Most small and midsized businesses don’t think about their IT documentation until it’s too late. When a system goes down, an audit is looming, or a provider relationship turns sour. Suddenly, you need credentials, network diagrams, or process notes, and they’re nowhere to be found.

Some IT providers even make things worse by holding your documentation hostage. They keep critical records hidden to make switching harder, even though those records belong to you. What looks like an “inconvenience” quickly becomes a costly business risk.

The Real Risks of Bad or Missing Documentation

When IT documentation is incomplete, outdated, or inaccessible, the risks go far beyond inconvenience. They affect every part of your business:

Slower resolutions = longer downtime
Without clear records, technicians are forced to guess, retrace steps, or rebuild what should already be known. That means routine fixes can take hours or even days. Every extra minute of downtime decreases productivity, revenue, and client trust.
Higher costs = hidden financial drain
Gaps in documentation often lead to repeat work, unnecessary troubleshooting, and “emergency” labor charges. What starts as a simple ticket quickly inflates into a costly problem. Over time, poor documentation silently drains your IT budget.
Compliance failures = legal and financial risk.
In industries like healthcare, finance, and legal, documentation isn’t optional. It’s required. Missing or outdated records can cause failed audits, regulatory fines, or denied insurance claims. Worse, it could expose sensitive client data, damaging your reputation.
Messy transitions = stalled growth
If you switch providers, missing or inaccurate documentation can make migrations risky and disruptive. Instead of a seamless handoff, you face longer outages, frustrated staff, and potential data loss. For businesses looking to modernize, this stalls momentum and growth.

Bad documentation slows you down and erodes your business from the inside out. Without control of your records, you’re left vulnerable and reactive, paying for problems that could have been avoided.

Q4 Is the Time to Take Control

Waiting until January to address documentation only multiplies your risks. Q4 is the ideal window to act:

Use remaining 2025 budget – Invest before year-end so you don’t carry today’s risks into 2026.
Smooth transitions—If you’re switching providers, start in Q4 so migrations can be completed during the holiday slowdown, not during peak operations.
Compliance alignment – Enter the new year audit-ready, with records that meet insurer and regulatory expectations.
Start fresh in Q1 – Your staff returns from the holidays with stronger IT processes, not lingering gaps.

If you wait until January, you risk carrying the same vulnerabilities into the new year, when problems will only grow more expensive and disruptive.

Switching to Yeo & Yeo Technology Means Transparency

For decades, Michigan businesses have trusted Yeo & Yeo Technology to deliver IT services with clarity and integrity. We believe documentation should empower you, never trap you. That’s why our approach is always client-first:

Perpetual access – Your records belong to you. You’ll always have them.
Documented onboarding/offboarding – Our proven processes keep transitions smooth and staff productive.
Up-to-date accuracy – We maintain and refresh documentation to resolve issues faster and more safely.
Transparency and trust – No locked files, no hidden records, and no excuses.

With Yeo & Yeo Technology, switching providers doesn’t mean disruption. It means gaining clarity, control, and a partner rooted in your community.

Get Control of Your IT

Don’t let poor documentation or shady practices put your business at risk. Your IT should work for you, not against you.

Ready to get your data back?

👉 Schedule a consultation today and discover how Yeo & Yeo Technology ensures your IT documentation is always accurate, accessible, and truly yours.