IRS Issues Final Regulations on Tips Tax Break

Last year, a new income tax deduction for qualified cash tips went into effect under the One Big Beautiful Bill Act (OBBBA). The break is scheduled to expire after 2028. In September 2025, the IRS released proposed regulations to provide guidance for taxpayers. The IRS has now published final regs that largely mirror the proposed regs but also include some important clarifications and additions.

What does the deduction cover?

Under the OBBBA, individual taxpayers can claim a tax deduction, available to both itemizers and nonitemizers, for up to $25,000 in “qualified tips.” The deduction begins to phase out if your modified adjusted gross income (MAGI) exceeds $150,000, or $300,000 if you’re married filing jointly. The deduction is completely phased out if your MAGI reaches $400,000, or $550,000 if you’re a joint filer. (Married taxpayers filing separately can’t claim the tips deduction.)

Important: The $25,000 limit applies per tax return, so joint filers who both receive qualified tips can’t claim two separate deductions. In addition, tips remain subject to federal payroll taxes and, where applicable, state income and payroll taxes.

Qualified tips generally refers to tips paid in cash (or an equivalent medium, such as checks or credit and debit cards) to an individual in an occupation that customarily and regularly received tips on or before December 31, 2024. They must be paid voluntarily, without any consequence for nonpayment, in an amount determined by the payor and without negotiation. Tips received in the course of a specified service trade or business are excluded.

What’s in the final regs?

The final regs address several critical areas, including:

Eligible occupations. The proposed regs identified 68 eligible occupations in eight categories. The final regs expand the list to 71 occupations (adding visual artists, floral designers and gas pump attendants) and tweaked some of the categories, ending up with:

Beverage and Food Service,
Entertainment and Events,
Hospitality and Guest Services,
Home Services,
Personal Services,
Personal Appearance and Wellness,
Recreation and Instruction, and
Transportation and Delivery.

The final regs also expanded some of the proposed regs’ categories and clarified others. For example, they added “app/platform-based delivery person” to the illustrative list for the “Goods Delivery People” occupation in the “Transportation and Delivery” category.

The final regs also include two new examples dealing with payments to digital content creators. If customers’ payments give them access to the content, the payments are treated as compensation for services provided. But if customers make voluntary payments after gaining access to the content, the payments are tips.

Digital assets. The final regs state that digital assets aren’t considered cash tips — for now. Thus, they’re currently not eligible for the tips deduction. But the IRS has indicated it will consider the treatment of stablecoins in connection with the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act and any future legislation that modifies the characterization of digital assets.

Voluntariness. Under the proposed regs, service charges, automatic gratuities and any other mandatory amounts automatically added to a customer’s bill by the vendor or establishment generally weren’t considered voluntary, even if the amounts were subsequently distributed to employees. To be voluntary, the customer must be expressly provided an option to disregard or modify amounts added to a bill.

The final regs retain this approach. However, they modify the language to make clear that a tip is voluntary if the customer has the option to reduce the tip amount to zero. So tips made on POS systems with a tip slider that goes to zero or an option for the customer to select “other” and enter zero are voluntary.

Note: Payments in excess of mandatory amounts are voluntary.

Managers/supervisors. Under the final regs, tips received by a manager or supervisor via a voluntary or mandatory tip-sharing arrangement, such as a tip pool, aren’t considered qualified tips. But tips received directly by supervisors or managers for services they provided in the course of duties performed in an eligible occupation (for example, performing the duties of wait staff while the restaurant is crowded) are qualified tips if all other requirements are satisfied.

Anti-abuse rules. To prevent the reclassification of income as qualified tips, under the proposed regs, a payment wasn’t a qualified tip if the recipient had an ownership interest in or was employed by the payor of the tip. The final regs relax this standard somewhat.

Under the final regs, an amount isn’t a qualified tip if, based on all relevant facts and circumstances, the amount is a recharacterization of wages or payment for goods or services for the purpose of claiming the deduction. Facts and circumstances that might indicate that wages, payment for services or other income have been recharacterized as tips in order to claim the deduction include when:

The invoiced charge for services is less than the payment from the payor shown on a related receipt, and the amount of the cash tip reported on the receipt approximates the difference between the invoiced charge and the payment amount on the receipt, and
A significant shift in historical tipping or payment practices between the payor and the tip recipient occurs.

Moreover, the final regs establish an irrebuttable presumption that a “tip” reflects a recharacterization of wages, payment for services or other income when the employer is the payor of a cash tip received by the employee. The presumption also is triggered if the tip recipient has a direct ownership interest in the tip payor.

Questions?

If you receive tips for work you perform, check the list of occupations eligible for the deduction and plan accordingly. If you have any questions about this tax break, contact us. We can help you determine if the tips you receive qualify for the deduction.

Incorrect underpayment notices

On April 23, the Michigan Department of Treasury acknowledged that thousands of taxpayers are receiving underpayment notices in error. Many taxpayers who made 2025 estimated tax payments to the State of Michigan were not properly credited for those payments, and therefore, received a notice from the state that reflected an underpayment of tax equal to the amount of estimated tax they had already paid.

The Treasury Department confirms that the issue was limited to the letters themselves, not to the underlying tax records. They are working to correct the system error and will issue revised notices once resolved. At this time, no action or response is required from taxpayers who received these incorrect letters.

Erroneous refund checks for penalties and interest

A separate issue has also been identified. Some taxpayers who appropriately reported an underpayment penalty and interest with their return are now receiving refund checks from the State of Michigan in the amount of the penalty and interest.

The Michigan Department of Treasury is asking taxpayers not to cash these checks. Instead, taxpayers should return the uncashed check along with a brief explanation of why the check is being returned to:

Michigan Department of Treasury
P.O. Box 30788
Lansing, MI 48909

Next steps

If you receive any correspondence from the State of Michigan, we encourage you to forward it to your Yeo & Yeo tax professional. We will evaluate whether the notice was received in error or not and help with the next steps.

Both internal and external audits play vital roles in safeguarding your organization’s financial integrity. They share the common goals of promoting reporting transparency and helping prevent errors and fraud, but they serve different functions and audiences. Here’s a closer look at some key distinctions to help your business develop a strategic audit approach.

Why they’re conducted

The purpose of an internal audit is to assess and improve a company’s internal controls, risk management and governance processes. Some companies have an internal audit department, but others outsource this function to external audit firms. Internal auditors — whether in-house or outsourced — work as an extension of the company’s management to ensure that internal processes align with organizational objectives and mitigate risk.

External audits must always be performed by an independent CPA firm. Under the auditing standards, an external audit aims to provide reasonable assurance about whether the company’s financial statements are free from material misstatement and to express an opinion on whether they’re presented fairly in accordance with U.S. Generally Accepted Accounting Principles (GAAP) or another relevant framework.

How far they reach

Internal audits can cover a broad range of topics. For example, auditors may evaluate operations, internal controls, company or industry-specific risks, and compliance with laws and regulations. You can tailor an internal audit’s scope to your company’s needs and modify it as new risks or business opportunities emerge. Outsourcing this function can be cost-effective for smaller organizations that don’t require a full-time internal audit department.

External audits are standardized, focusing solely on the financial statements and related disclosures. External auditors perform testing on account balances and transactions, evaluate financial reporting controls, and assess compliance with GAAP or other relevant frameworks. They also follow applicable regulatory guidelines, such as the U.S. Generally Accepted Auditing Standards issued by the American Institute of Certified Public Accountants and the Public Company Accounting Oversight Board standards.

Who stays independent

Internal auditors work under the direction of the company’s audit committee or management. Outsourced internal audit teams are also part of the organization’s internal audit function, so they may not be entirely independent. While internal auditors usually provide recommendations to the company, they can remain objective if they report directly to the audit committee or management.

On the other hand, external auditors must maintain independence, in fact and appearance, from the companies they audit to ensure objectivity and compliance with professional standards. This means they can’t have direct financial interests in the company or perform services that could create actual or perceived conflicts of interest. Independence is crucial for external auditors to provide an unbiased opinion that stakeholders can trust.

How the work gets done

Internal auditors use a risk-based, continuous-improvement approach, targeting specific areas of concern. They may also use internal control models — such as the Committee of Sponsoring Organizations of the Treadway Commission framework — to assess the company’s processes, identify potential risks, evaluate controls and make recommendations for improvement. Their role tends to be more consultative.

External auditors follow standardized methods to gather sufficient evidence to form an opinion on the fairness and compliance of the financial statements. After assessing the company’s risks, external auditors may perform substantive procedures, analytical reviews and sampling techniques to detect material misstatements. They verify the accuracy of accounts by conducting tests, reviewing source documents and confirming account balances with third parties.

What they produce

Internal auditors typically report directly to management or the audit committee. They provide detailed recommendations and action plans based on their findings, areas of risk and control weaknesses. Internal audit reports aren’t usually distributed to outside stakeholders; instead, they’re intended to guide internal improvements and decision-making.

External auditors issue an audit opinion on the organization’s financial statements. The audit opinion is a letter that serves as the front page of the company’s financials. Public companies file reports with the U.S. Securities and Exchange Commission, which are available to the general public. Many private companies share audited financial statements with lenders, franchisors, private equity investors and other stakeholders.

When they happen

Internal audit procedures are conducted throughout the year, typically in accordance with an annual audit plan approved by management or the audit committee. Internal auditors may evaluate different areas on a rotating or as-needed basis as risks evolve or emerge.

External audits are generally performed at year end. However, public companies and larger private organizations may also be required to issue audited financial statements quarterly. For an added measure of assurance, some companies have auditors conduct periodic “surprise” audits or agreed-upon procedures engagements that target high-risk accounts or areas of concern identified during year-end audits.

Choosing the right mix

When used together, internal and external audits provide a more complete picture of your organization’s risks, controls and financial reporting. As your business evolves, so should your audit approach. Periodically reassessing your needs can help ensure you’re getting the right balance of insight, assurance and strategic value. Contact us to learn more.

When an employee’s performance slips, many small and midsize employers hesitate to act. It’s an understandable reaction. Confrontations are often difficult for supervisors. Troubled workers may simply quit in response, and replacing them can be costly and time-consuming. And of course, the worry of legal exposure is ever-present.

However, when problems linger without consistent correction, the negative financial impact can slowly and quietly build. That’s why carefully planned and well-executed performance management is imperative.

Everyone is affected

It’s all too easy for employers to underestimate the cost of underperformance — or not even notice it until a crisis develops. When one employee fails to meet expectations, productivity often declines across multiple positions. Missed deadlines, errors and inefficiencies can disrupt workflows and lower customer satisfaction. Over time, these issues may require rework or create other costly delays.

Meanwhile, other employees are likely to pick up the slack. This can lead to increased overtime for hourly workers, higher payroll costs, growing frustration and lower morale. High performers may feel like they’re handling an unfair share of the workload, which can eventually drive them out of your organization.

Indeed, what began as a single employee’s performance issue can evolve into a much wider operational and financial problem. And if multiple staff members are underperforming, the costs can compound. After all, paying full compensation for below-expected output reduces return on payroll investment.

Supervisor stress

Underperforming employees typically demand more attention from supervisors. Repeated conversations, complaints from other employees and customers, and more labor-intensive oversight can consume hours and mental energy that could otherwise be devoted to strategic or revenue-generating activities. And if performance management policies and procedures are unstructured or unclear, these challenges can persist indefinitely.

This often-overlooked cost is easy to miss because it doesn’t appear on financial statements. Some supervisors may not even mention the drag on their productivity because they believe it’s just part of their job. But there’s no denying that time is among every manager’s most valuable resources. When an organization settles for a suboptimal approach to performance management, leadership development and retention may suffer.

Consistency matters

Effective performance management is all about setting clear expectations, documenting deficiencies and providing guidance on how to improve. Consistent, well-constructed policies and procedures help reduce ambiguity, support more predictable decision-making and strengthen your organization’s position in the event of disputes. They also enable you to determine whether an employee is likely to improve or if further adverse action may be necessary.

By addressing issues early and in a structured manner, you can limit the negative effects of underperformance before they escalate. In turn, you’ll likely create a stronger workplace culture where expectations are well-understood, accountability is reinforced and success is celebrated.

Now precisely how your organization should handle performance management depends on many factors — including its industry, size, mission and culture. But it all starts with recognizing the immediate and long-term impact of a well-trained and managed workforce.

It’s financial, too

At first glance, performance management may not seem like a financial issue. However, underperformers can quietly drain your organization’s resources and create operational inefficiencies. Implementing a consistent, well-designed approach helps control costs and minimize risks. We’d be happy to help you evaluate how performance management affects your organization’s financial stability and long-term success.

Donor-advised funds (DAFs) have become increasingly popular among individuals and families who want to simplify their charitable giving while maximizing tax efficiency. According to the 2025 Annual DAF Report produced by the Donor Advised Fund Research Collaborative, in 2024, the total number of DAF accounts reached a record high of 3.56 million. Total assets in DAFs increased 27.5%, with total invested funds reaching $326.5 billion. Here’s how a DAF might fit into your charitable giving strategy and estate plan.

DAFs in action

A DAF is a charitable investment account that generally requires an initial contribution of at least $5,000. It’s typically managed by a financial institution or an independent sponsoring organization, which charges an administrative fee based on a percentage of the deposit.

From a tax perspective, DAFs offer significant benefits. Contributions are generally deductible in the year they’re made (assuming you itemize deductions), even if the funds are distributed to charities in future years. This is particularly valuable in high-income years when you may want to offset income with a sizable charitable deduction but don’t know exactly which charities you’d like to benefit.

Additionally, donating appreciated assets, such as publicly traded stock, allows you to avoid the capital gains tax liability you’d incur if you sold the assets. Yet you can still deduct their fair market value. (Be aware that some DAFs only allow contributions of cash or cash equivalents.)

Another DAF advantage is administrative simplicity. Unlike private foundations, DAFs don’t require the donor to manage compliance, file separate tax returns or oversee grant administration. The sponsoring organization handles recordkeeping, due diligence and distribution logistics, allowing you to focus on your charitable intent rather than administrative burdens.

DAFs can also enhance strategic giving. Funds within a DAF can be invested and potentially grow tax-free, increasing the amount ultimately available for charitable purposes. You can take time to thoughtfully select the charities, involve family members in philanthropic decisions and create a more intentional giving strategy rather than making rushed year-end donations.

Estate planning benefits

Integrating a DAF into an overall estate plan can amplify its benefits. It can serve as a centralized vehicle for a family’s charitable legacy, helping to align philanthropic goals across generations. You can name successor advisors — such as children or other heirs — who can recommend grants from your DAF after your lifetime, fostering continued family engagement in charitable giving.

From an estate tax standpoint, DAFs are also beneficial. Assets contributed to a DAF — whether during your life or at death — are removed from your taxable estate. This can be particularly advantageous for high-net-worth individuals seeking to reduce estate tax exposure while supporting causes they care about.

Additionally, you can designate a DAF as a beneficiary of retirement accounts, such as IRAs. Because these accounts are typically subject to income tax when an individual beneficiary takes distributions, leaving them to a charitable vehicle, such as a DAF, can be tax-efficient. (But think twice before naming a DAF as the beneficiary of a Roth account, because distributions would generally be tax-free to an individual beneficiary.)

Coordination is key

It’s important to coordinate a DAF with your other estate planning strategies. For example, ensure that your charitable intentions are clearly documented and aligned with your overall distribution strategy. We can help structure your DAF contributions and beneficiary designations to maximize both tax savings and philanthropic impact.

Whether it’s a trademark, copyright, patent, trade secret or other piece of IP, its ultimate value to your business depends on you owning it. Without airtight agreements with employees and independent contractors, these workers may claim that the IP they research and develop belongs to them.

Some companies learn they don’t actually own IP assets only when they’ve engaged a business valuation professional in preparation for a sale, or when employees leave and take IP with them. To prevent unexpected ownership issues and costly disputes that could create risk and diminish your business’s value, take action now.

What the law says

Federal copyright law and the laws of most states mandate that employees and independent contractors who invent products, write materials and develop software may be the owners of the IP rights. In fact, in some states, employers may only have a limited license to inventions created by employees, even if they were invented “on the clock” or using company resources.

Fortunately, you can help prevent ownership disputes, including litigation. All states permit businesses to require workers to sign copyright, IP and invention assignment agreements, subject to applicable legal limitations.

Work with an attorney who specializes in IP to draft a standard agreement based on your state’s laws. It should require the employee or contractor to turn over or legally “assign” IP rights to your business. In addition, it should mandate that the employee or contractor assist your company’s legal counsel in securing and enforcing these rights. It’s also important to apply these agreements consistently and enforce them in practice, because inconsistent use can weaken your position in disputes and merger and acquisition due diligence.

Go a step further

When you hire workers (or when you require them to sign an agreement), make sure you ask them to identify all pre-existing inventions that are to be excluded from the agreement. For example, they may have patented inventions on their own or created trademarks for previous employers. Then request that they give up claims to any new inventions that are related to your business activities, even if the inventions are developed during their nonworking hours.

For example, let’s say your company develops 3D printing software. Your agreement should prohibit your code writers from creating related design tools at home and then selling them to your competitors. If, however, an employee working on her own time and with her own resources develops software that’s unrelated to your business, that IP likely belongs to her. Some states, such as California, prevent employers from claiming such IP or asking employees to sign away their rights to it.

Legal and financial advice

Ultimately, safeguarding IP isn’t a passive exercise but a deliberate business discipline that requires foresight, structure and legal precision. Although an attorney’s guidance is critical for this purpose, financial advisors also play an important role. We can help you address IP ownership issues before you sell your business or before workers leave your employment. We can also help identify financial and tax considerations of IP. Contact us for more information.

Year-end presents unique challenges for government payroll and HR teams. This webinar addresses key HR and payroll compliance requirements, considerations, and planning topics as governments close out the year and prepare for 2027.

Key Topics

Coming Soon

Learning Objectives

Coming Soon

Presenters

Amy Cell – Yeo & Yeo HR Advisory Solutions
Christine Porras – Yeo & Yeo CPAs & Advisors

This session focuses on practical, real-world insights drawn from government audits and accounting engagements. Attendees will gain actionable tips to improve efficiency, reduce audit findings, and strengthen internal processes.

Key Topics

Audit readiness best practices
Documentation efficiencies
Common issues identified during audits
Practical process improvements used by peer governments

Learning Objectives

Apply best practices to improve audit outcomes
Reduce year-end surprises
Strengthen internal controls and processes

Presenters

Several GASB standards continue to challenge government entities well after adoption. This webinar provides a practical refresher on GASB 87, 96, and 101, focusing on common implementation issues, documentation expectations, and audit considerations.

Key Topics

GASB 87: Lease Accounting – Common Errors and Documentation Gaps
GASB 96: Subscription-based IT Arrangements (SBITAs)
GASB 101: Compensated Absences
Lessons learned from audits and implementation reviews

Learning Objectives

Refresh understanding of key GASB requirements
Identify common compliance and documentation issues
Improve internal processes and audit readiness

Presenters

Government accounting standards continue to evolve, and early planning is critical to successful implementation. This CPE-eligible webinar provides a focused overview of upcoming GASB standards 103, 104, and 105, highlighting key requirements, effective dates, and practical considerations for government entities.

Key Topics & Technical Focus

GASB 103: Financial Reporting Model Improvements
GASB 104: Disclosure of Certain Capital Assets
GASB 105: Subsequent Events
Effective dates and transition considerations
Anticipated audit and financial reporting impacts

Learning Objectives

Participants will be able to:

Identify key provisions of GASB 103, 104, and 105
Understand implementation timelines and transition requirements
Evaluate financial reporting and audit implications
Prepare internal teams for upcoming changes

Presenters

Who Should Attend

Finance directors, controllers, treasurers, accountants, and government leaders involved in financial reporting and audit preparation.

Helpful resources to review before attending the webinar:

Government accounting standards continue to evolve, and the pace of change shows no signs of slowing. For government leaders, staying informed about upcoming GASB standards is not simply a technical exercise; it’s a critical part of financial stewardship, transparency, and audit readiness.

Three new standards in particular—GASB Statements 103, 104, and 105—will affect how governments approach financial reporting, disclosures, and implementation planning over the coming years. While effective dates may still feel distant for some entities, early awareness and preparation can significantly reduce implementation challenges down the road.

GASB 103 introduces improvements to the financial reporting model to enhance clarity and consistency in government financial statements. While many governments will find that the core structure of their statements remains familiar, changes in presentation and classification may require thoughtful planning, especially when communicating results to stakeholders and governing bodies.

GASB 104 focuses on specific updates to financial reporting and disclosure requirements intended to improve clarity and consistency in government financial statements. For many entities, the implementation challenge will center on understanding how to evaluate or estimate whether an asset will be sold within one of year of the financial statement date.

GASB 105 includes a series of focused amendments that modify or clarify existing accounting guidance. While the changes are targeted, they may still affect how certain items are recognized, measured, or disclosed. Governments should assess the applicability of each amendment to their individual circumstances to determine whether updates to accounting practices or financial statement presentations are required.

One of the most common pitfalls governments face with new standards is waiting too long to begin planning. Even when implementation dates are several years away, early conversations—between finance teams, auditors, and advisors—can help identify potential data gaps, system limitations, and documentation needs before they become time-sensitive issues.

Another important consideration is how these standards may affect audit processes. Changes in presentation, disclosures, or terminology can influence audit procedures and expectations, making proactive communication especially valuable.

For governments looking to stay ahead of change and reduce surprises, understanding what’s coming—and what steps to take now—is a strong place to start.

View the Government Accounting & Operations Webinar Series

When new GASB standards are issued, government finance teams often ask the same question: What do we need to do differently—and when? With GASB Statements 103, 104, and 105 on the horizon, now is an ideal time to begin answering that question.

While each of these standards addresses a different aspect of financial reporting, they share a common theme: improving clarity, consistency, and transparency for financial statement users. For governments, successful implementation will depend less on last-minute compliance efforts and more on thoughtful preparation.

A practical starting point is understanding scope and applicability. Not every provision of each standard will affect every government in the same way. Taking time to evaluate how your entity’s financial statements, disclosures, and processes align with the new guidance can help narrow the focus to areas that truly require attention.

For GASB 103, governments should consider how changes to the financial reporting model may affect internal reporting, communication with governing bodies, and comparison to prior periods. Even presentation-focused changes can require coordination across teams to ensure consistency and accuracy. This may be particularly true for the newly required budgetary comparison disclosures.

Documentation is an important consideration early in the implementation process. GASB 104 introduces new financial reporting requirements that may require governments to reassess how certain information is identified, evaluated, and captured for disclosure. This standard involves an element of judgment because a new disclosure is now required for significant capital assets that are expected to be sold within one year of the financial statement date.

GASB 105 should also be evaluated carefully, even if the amendments appear narrow or technical. The statement makes targeted changes to existing guidance, and those changes may affect how certain transactions or balances are reported. Governments should review the updates closely to determine when events occurring after the reporting period are required to be recorded, disclosed, or both.

Another practical step is engaging in early conversations with your auditors and advisors. These discussions can help identify common implementation challenges, confirm interpretations, and align expectations well before the standards take effect. Proactive communication can also reduce audit adjustments and last-minute surprises.

To support governments in this process, Yeo & Yeo will be hosting a CPE-eligible webinar on May 27, 2026, dedicated to GASB 103, 104, and 105. The session will provide a practical overview of each standard, discuss implementation considerations, and include live Q&A with experienced government professionals.

View the Government Accounting & Operations Webinar Series

In some workplaces, employees stay late — not to finish pressing company projects — but to use their employers’ resources to pursue unauthorized side work. These workers might use their employers’ equipment and materials, not to mention run up utilities costs. Although side jobs may seem benign relative to outright theft, they can be costly in ways you might not have imagined.

Unexpected risks

Abuse of company resources — for example, computers, printers, paper and electricity — is the most obvious risk of after-hours hustles. Tools used for personal projects may wear out faster or break without direct supervision. What’s more, products created with company tools can blur ownership lines, especially if those products rely on your proprietary technology.

Also consider what might happen if an employee is injured, or injures someone else, while working off-the-clock in your office or factory. Your company could be held liable, especially if a manager knew about the activity and didn’t do anything to stop it. Then there’s the risk of employees claiming overtime for hours they’re actually spending on their own projects.

Employees may think their activities are harmless, particularly if management hasn’t explicitly forbidden such activities or is inconsistent in enforcing rules. But if you don’t establish and enforce rules and monitor workers, side jobs can evolve from one-off projects to routine misuse of resources and ongoing fraud.

Policies and procedures

Stopping employees from engaging in after-hours hustles requires several simple yet effective controls, starting with a written policy prohibiting the practice. Your policy should stipulate what constitutes business property and how it can be used, when employees are allowed to be on your premises, and what approval they need to work on-site after hours. Be explicit about what qualifies as overtime and who must approve it. And make sure the same policies apply to management as to ordinary workers.

Consider these additional control measures to help reduce financial and operational risk:

Monitor and limit access to company facilities. Install a key card system to control access to your facilities. Pay attention to unusual entry and exit patterns and follow up when employees appear to be on-site outside of expected hours.

Install cameras. Visible cameras can reinforce your written policies and key card entry system — and help prevent other criminal activity. Camera footage can also provide information and evidence for official investigations and disciplinary proceedings.

Make surprise visits. Unexpectedly showing up at your facility may help you catch an employee engaging in unauthorized activity. Even if it doesn’t, it can discourage workers who might be tempted to break the rules.

Implement an employee hotline. If you haven’t already, provide workers with an anonymous mechanism (for example, a toll-free tipline or web portal) to report rule infractions and suspected fraud. Often, employees know more about their colleagues’ activities than supervisors do.

Between control and trust

Most employees who work late are on-site to perform legitimate company projects, not to pursue side hustles. So be careful not to accuse someone of misuse or fraud unless you have good evidence of bad intent. After all, you likely want to encourage workers to assume ownership of their work and assert initiative! The best way to prevent after-hours hustles is to balance trust with structure. Contact us to investigate any suspicious activities, conduct a risk assessment and implement internal controls to help prevent financial losses.

The passive activity loss (PAL) rules may limit your ability to deduct losses from a business structured as a limited liability partnership (LLP) or limited liability company (LLC). Depending on how your ownership interest is treated under these rules, you may have more or less flexibility to claim losses in the current year. Here’s a closer look.

The basics

Under the PAL rules, you generally can use passive activity losses only to offset income from other passive activities. (Keep in mind that other limitations, such as basis and at-risk rules, may apply before the PAL rules.)

There are two types of passive activities: 1) trade or business activities in which you don’t materially participate during the year, and 2) rental activities, even if you do materially participate (unless you qualify as a real estate professional under the PAL rules). Disallowed losses may be carried forward to future years and deducted from passive income or recovered when the passive business interest is sold.

If you’re an LLP or LLC owner, you can avoid passive treatment by materially participating in the business’s activities. This allows you to use LLP or LLC losses to offset nonpassive income, such as wages, interest, dividends and capital gains.

7 factors

Material participation in this context means participation on a “regular, continuous and substantial” basis. Unless you’re treated as a limited partner, you’re deemed to materially participate in a business activity during the year by meeting one of the following seven criteria:

You participate in the activity more than 500 hours during the year.
Your participation constitutes substantially all the participation for the year by anyone, including nonowners.
You participate more than 100 hours and as much or more than any other person.
The activity is a “significant participation activity” — that is, you participate more than 100 hours — but you participate less than one or more other people yet your participation in all your significant participation activities for the year totals more than 500 hours.
You materially participated in the activity for any five of the preceding 10 tax years.
The activity is a personal service activity in which you materially participated in any three previous tax years.
Regardless of the number of hours, based on all the facts and circumstances, you participate in the activity on a regular, continuous and substantial basis.

Limited partners face more restrictive rules; they can establish material participation only by satisfying criterion 1, 5 or 6.

Supporting your deductions

If you’re an LLC or LLP owner, it’s important to track the time you spend on business activities. In addition, if your spouse also participates in an activity, you can combine your hours to meet the material participation standards. Contact us for additional guidance on documenting your hours, applying the material participation test and maximizing business loss deductions.

Even financially sound businesses can be vulnerable to market volatility and unexpected disruptions. Many companies discover too late that their financial position, internal controls or contingency plans aren’t built to withstand sudden shocks, potentially leading to cash shortfalls, debt covenant violations and reduced profitability. A “stress test” models how your cash flow, liquidity and overall financial structure would perform under adverse scenarios. Here’s how stress testing can help you proactively evaluate your business’s resilience and strengthen its ability to adapt to changing market conditions.

Identify your organization’s exposure points

Start by identifying your business’s exposure points. Risks are often classified in four categories:

Operational risks. These risks encompass the company’s internal operations. Examples include cybersecurity incidents, supply chain breakdowns or natural disasters.
Financial risks. How well does your company manage its finances? Key financial risks may include liquidity constraints, interest rate exposure and the threat of fraud.
Compliance risks. This category includes issues that might attract the attention of government regulators, such as evolving tax, reporting and industry-specific requirements.
Strategic risks. This term refers to the company’s market focus and its ability to respond to changes in customer demand, competition and technology.

Build a practical response framework

Once you’ve identified key business risks, meet with your management team to improve your collective understanding of their potential financial impacts and the organization’s capacity to absorb them. Encourage team members to share additional risks and model downside scenarios, such as revenue declines, delayed receivables or increased borrowing costs — along with their impact on cash flow and profitability.

In addition to evaluating downside risk, stress testing can help your team identify opportunities to reallocate resources to higher-performing products or services, adjust pricing strategies in response to shifting demand, or make targeted investments when competitors pull back. This approach allows you to respond proactively rather than defensively to emerging threats.

From there, your management team can develop a plan to mitigate risk. For example, if your company operates in an area prone to natural disasters, you should maintain and periodically test a disaster recovery and business continuity plan. If your company relies heavily on a key individual, consider implementing a succession plan and evaluating key person insurance. For financial risks, your plan may include maintaining adequate liquidity buffers, diversifying your revenue base, revisiting debt covenants and strengthening internal controls to reduce fraud risk.

Reassess and refine regularly

Effective risk management is an ongoing process. New risks emerge as markets, technology and regulations evolve, while previously significant risks may diminish over time. Meet with your management team at least annually — or more frequently in periods of change — to review and update your risk management plan. If your organization has recently faced a disruption, use that experience as a learning opportunity. Evaluate how well your plan performed, identify gaps and missed opportunities, and implement improvements to strengthen your response going forward.

Build resilience now

A well-executed stress test identifies blind spots that can affect financial performance and provides a roadmap for building resilience. In today’s environment, proactive risk assessment is a key component of sound financial management and governance. We can help you quantify potential cash flow gaps, evaluate tax and financial risks across multiple scenarios, and identify practical steps to fortify your financial position and uncover strategic opportunities. Contact us to design and perform a stress test tailored to your organization, so you can make timely, data-driven decisions.

With the April 15 tax filing deadline in the rearview mirror, you’re likely to turn your attention to other things. But before you do, it’s in your best interest to tie up a few tax-related loose ends.

IRS statute of limitations

Generally, the IRS’s statute of limitations for auditing a tax return is three years from the return’s due date or the filing date, whichever is later. However, some tax issues are still subject to scrutiny after three years. For example, if the IRS suspects that income has been understated by 25% or more, the statute of limitations for an audit extends to six years. If no return was filed or fraud is suspected, there’s no limit on when the IRS can launch an inquiry.

It’s a good idea to keep copies of your tax returns indefinitely as proof of filing. Supporting records generally should be kept until the three-year statute of limitations expires. These documents may also be helpful if you need to amend a return.

So, which records can you throw away now? Based on the three-year rule, in late April 2026, you’ll generally be able to discard most records associated with your 2022 return if you filed it by the April 2023 due date. Extended 2022 returns could still be vulnerable to audit until October 2026. But if you want extra protection, keep supporting records for six years.

What records should you retain?

Documentation supporting your income, deductions and credits that you generally should retain following the three-year rule may include:

Various series 1099 forms, such as Form 1099-NEC, “Nonemployee Compensation,” Form 1099-MISC, “Miscellaneous Income,” and Form 1099-G, “Certain Government Payments,”
Form 1098, “Mortgage Interest Statement,”
Property tax payment documentation,
Charitable donation substantiation,
Records related to contributions to and withdrawals from Section 529 plans and Health Savings Accounts, and
Records related to deductible retirement plan contributions.

You’ll also want to hang on to some tax-related records beyond the statute of limitations. For example:

Retain Forms W-2, “Wage and Tax Statement,” until you begin receiving Social Security benefits. That may seem long, but if questions arise regarding your work record or earnings for a particular year, you’ll need your W-2 forms as part of the required documentation.
Keep records related to investments and real estate for as long as you own the assets, plus at least three years after you sell them and report the sales on your tax return (or six years if you want extra protection).
Hang on to records associated with retirement accounts until you’ve depleted the accounts and reported the last withdrawal on your tax return, plus three (or six) years.
Retain records that support figures affecting multiple years, such as carryovers of charitable deductions or casualty losses, until they have no effect, plus seven years.
Keep records that support deductions for bad debts or worthless securities that could result in refunds for seven years because you have up to seven years to claim them.

Other tax-related chores

As you can see, keeping tax-related records is critical. So put yourself in a good position for filing your 2026 return next year by carefully tracking expenses potentially eligible for deductions or credits on an ongoing basis.

For example, if you’re self-employed and use your personal vehicle for business purposes, maintain a mileage log recording the date, mileage, purpose and destination of each trip. Or if you regularly donate to charity, keep the receipts or written acknowledgments you receive. (Additional substantiation may be required depending on the size and type of donation.)

In addition, this is a good time to reassess your current tax withholding to determine if you need to update your Form W-4, “Employee’s Withholding Certificate.” You may want to increase withholding if you owed taxes this year. Conversely, you might want to reduce it if you received a hefty refund. Changes also might be in order if you experience certain major life events, such as marriage, divorce, birth of a child or adoption, this year.

If you make estimated tax payments throughout the year, consider reevaluating the amounts you pay. You might want to increase or reduce the payments due to changes in self-employment income, investment income, Social Security benefits and other types of nonwage income.

To preempt the risk of a penalty for underpayment of tax, consider paying at least 100% of the tax shown on your 2025 tax return (110% if your 2025 adjusted gross income was over $150,000 — or over $75,000 if you’re married and filed separately) through withholding and/or four equal estimated tax payments.

What’s this? A letter from the IRS?

After filing your tax return, you may receive a letter in the mail from the IRS. While such letters can be alarming, don’t assume the worst. The letter might simply inform you of a refund adjustment (up or down) based on a math or similar error on your return. If you agree with the change, generally no response is needed. If you disagree, contact the IRS by the date indicated.

Or the letter might propose a change to your return based on information reported by third parties, such as employers or financial institutions. In this case, follow the instructions to respond, include any required documentation, and note whether you agree or disagree with the proposed change.

Of course, an IRS letter could inform you that your return is being audited. It’s important to remember that being selected for an audit doesn’t always mean there’s a significant error on your return. For example, your return could have been flagged based on a statistical formula that compares similar returns for deviations from “norms.”

Further, if selected, you’re most likely going to undergo a correspondence audit. These account for a majority of IRS audits. They’re conducted by mail for a single tax year and involve only a few issues that the IRS anticipates it can resolve by reviewing relevant documents. According to the IRS, most audits involve returns filed within the last two years.

If you receive notification of a correspondence audit, you and your tax advisor should closely follow the instructions. You can request additional time if you can’t submit all the documentation requested by the specified deadline.

Don’t ignore the letter. Failure to respond can lead to the IRS disallowing some tax breaks you claimed and issuing a Notice of Deficiency (that is, a notice that a tax balance is due).

Be proactive

Organizing your past and current-year tax records now can facilitate a smoother tax filing next year or a less painful audit of a recent return. Similarly, adjusting your withholding or estimated tax payments can mean more money in your pocket now or no (or smaller) underpayment penalties next April.

If you have questions on what files to keep and for how long or how to adjust withholding or estimated tax payments, we can help. And if you receive an IRS letter, contact us as soon as possible. We can advise you on complying with any IRS requests.

So you’ve decided to start your own business — congratulations! Many new owners open a business to be their own boss and chart their own course. However, along with those benefits come some complications compared to being someone else’s employee. Planning and budgeting are critical, and you’ll have plenty of new tax compliance responsibilities.

1. It starts with funding

Starting a business takes money. To help you gain access to bank loans and attract equity investors, write a formal business plan that tells your backstory, describes your products and services, and highlights your market research. The plan should explain how you intend to use any capital you raise to grow the business and, of course, why your business will be successful.

Because your new business won’t have a financial track record, you’ll need to create a projected balance sheet, income statement and statement of cash flows using market-based assumptions. Lay out multiple scenarios — including best, worst and most likely results — and identify which variables are critical.

2. Accounting matters

When you set up your business, separate its finances from your personal finances. Commingled financial records can cause tax and financial reporting headaches as your business grows.

Next, understand that lenders and investors will want to know whether your business is meeting performance targets. Establish an accounting system to record transactions and generate financial statements that can easily communicate results to stakeholders. We can recommend cost-effective software solutions.

Initially, you may elect to use the cash-basis or income-tax-basis method of accounting to simplify matters. Indeed, it’s often easier for start-ups to maintain one set of books for both tax and accounting purposes. However, if you have an accounting background, you may opt for accrual-basis accounting from the get-go.

3. Tax planning is a must-do

Many start-up ventures aren’t initially profitable. But it’s essential to start planning for taxes from the beginning. One factor that will affect your company’s tax situation is its entity structure. Depending on your tax, legal and other needs, you might choose a sole proprietorship, partnership, limited liability company (LLC), S corporation or C corporation.

Know that C corporations pay tax at the entity level, then the individual owners pay tax when they receive dividends. This results in double taxation. To avoid this, you may want to consider a “pass-through” entity. Pass-through income generally isn’t taxed at the entity level. Instead, it passes through to the individual owners (along with the business’s deductible expenses) and is taxed on their individual returns. However, the top rates for individual taxpayers are higher than the flat 21% rate for C corporations — though the qualified business income deduction for pass-through entity owners can help make up for that.

Another major tax issue to understand is the appropriate tax treatment for your start-up expenses. The timing and amount of expenses are key to determining what’s immediately deductible and what costs must be capitalized and amortized over time.

New businesses need to plan for other taxes, too. You may need systems in place to file and pay property, sales and employment taxes. Look into initially outsourcing these administrative tasks to third-party specialists so you’ll have time to focus on daily business operations.

4. Estate planning now can save tax later

Another smart consideration if you’re starting a business is estate planning. New entrepreneurs often solicit help from friends and family members. In exchange, founders may make gifts of ownership interests while the business’s fair market value is relatively low, removing potential future appreciation from their estates.

A business valuation professional can help determine the fair market value of your new business based on objective market data and financial projections. Proactive estate planning at this phase can save significant tax dollars over the long run as the company’s value grows.

5. Employees may want equity

Most start-ups operate lean, with only a few employees — each wearing multiple hats. Early employees may agree to forgo high salaries for equity-based compensation, which can help your start-up avoid a cash crisis while still attracting top talent. What’s in it for staffers? Business equity can grow into a valuable financial asset. Plus, employees who own equity may feel more invested and, thus, enjoy greater fulfillment.

There are several types of equity-based compensation to consider, including outright transfers of ownership interests in the business, profits interest awards (partnerships, LLCs and S corporations) and restricted stock or stock options (C corporations). We can help you determine the best form of compensation.

Thoughtful execution

Launching a successful business requires more than vision alone. It also calls for thoughtful execution, informed decision-making and ongoing attention to financial and operational details. Approach start-up matters with strategic foresight by consulting legal, financial and tax advisors. We can help you get off the ground.

Many small businesses don’t have enough employees to worry about the play-or-pay provisions of the Affordable Care Act (ACA). However, as your business grows, these rules can apply sooner than expected. This issue also may not be on your radar because there’s a common misconception that the repeal of ACA penalties under the Tax Cuts and Jobs Act applied to both individuals and businesses. While the individual mandate penalty was eliminated beginning in 2019, the employer shared responsibility rules are still in effect.

Don’t let ACA compliance become a blind spot for your business. Here’s what you need to know to comply with the law’s requirements.

The play-or-pay threshold

The ACA’s employer shared responsibility rules apply to applicable large employers (ALEs). In general, ALEs are businesses with 50 or more full-time employees, including full-time equivalents (FTEs). Once a business crosses that threshold, it must comply with several requirements related to employee health coverage. An employer’s size for the year is determined by the number of full-time employees plus FTEs in its prior year. The challenge is that many business owners don’t realize they’re approaching the ALE threshold until it’s too late.

First, for ACA purposes, a full-time employee generally is an individual employed on average at least 30 hours of service per week or 130 hours per month. So some employees you might consider to be part-time because they work less than 40 hours a week may be considered full-time for ACA purposes.

Second, FTEs are determined by adding all hours of service for the month for employees who weren’t full-time employees (but no more than 120 hours per employee), and dividing by 120. This can push a company into ALE status faster than expected. For example, a small company with 35 full-time employees and a significant number of part-time workers could exceed the 50-full-time-employee threshold once part-time hours are aggregated.

2 types of penalties

Under the ACA, an ALE may incur a penalty if it doesn’t offer minimum essential coverage to its full-time employees and their eligible dependents or if it offers such coverage, but that coverage isn’t affordable and/or fails to provide minimum value. The penalty is typically triggered when at least one full-time employee receives a premium tax credit for buying individual coverage through a Health Insurance Marketplace.

One of two penalty structures may apply, depending on the circumstances. First, under Section 4980H(a), a penalty may be assessed if an ALE fails to offer coverage to at least 95% of its full-time employees and their dependents. This penalty is calculated based on the total number of full-time employees, excluding the first 30. Second, under Section 4980H(b), a penalty may apply for each full-time employee who receives a premium tax credit for purchasing coverage through a Health Insurance Marketplace because the employer’s coverage is unaffordable or doesn’t provide minimum value.

Updated penalties for 2026

The adjusted penalty amounts (per the applicable number of full-time employees used to calculate the specific penalty) for failures occurring in the 2026 calendar year are:

$3,340 (up from $2,900 in 2025) under Sec. 4980H(a), for ALEs not offering health coverage, and
$5,010 (up from $4,350 in 2025) under Sec. 4980H(b), for ALEs offering coverage but that have employees who qualify for premium tax credits or cost-sharing reductions.

The IRS uses Letter 226-J to inform ALEs of their potential liability for an employer shared responsibility penalty. A response form — Form 14764, “ESRP Response” — is included with Letter 226-J so that an ALE can inform the IRS whether it agrees with the proposed penalty. A response is generally due within 30 days. Be on the lookout for this letter so that you’re prepared to promptly review and respond if the IRS contacts you.

Considerations for growing businesses

As your workforce expands, it’s important to address the following questions:

How close is your company to the 50-full-time-employee threshold?
Are you properly identifying who’s a full-time employee under the ACA and calculating your number of FTEs based on part-timers’ hours?
If your company becomes an ALE, how will it structure health coverage to satisfy affordability and minimum value requirements?
Are your payroll and human resource systems prepared to support ACA reporting requirements, including Forms 1094-C and 1095-C?

Addressing these issues early can help ensure that expansion plans don’t come with unexpected ACA penalties.

For more information

Careful compliance with the ACA remains critical for companies that qualify as ALEs. Growing small businesses should be particularly wary as they become midsize ones. Contact us with questions about your obligations and ways to better manage the costs of health care benefits.

Financial Literacy Month is a helpful reminder that money isn’t just about spreadsheets, investment accounts, or retirement calculators. At its core, financial literacy is about confidence—the confidence to make informed decisions, plan with intention, and navigate uncertainty at every stage of life.

If I’m honest, I wish I had been exposed to financial education much earlier. Like many people, I learned by trial and error, and sometimes the hard way. No one sat me down to explain how compound interest really works, how debt can quietly limit opportunity, or how much peace of mind comes from simply having a plan. That knowledge came later, after experience, mistakes, and time.

That experience shaped my belief that financial literacy isn’t just personal. It’s something we need to talk about openly, share more often, and introduce earlier. When people understand how money works—and how it works for them—the impact extends beyond individuals to families, organizations, and entire communities.

Why This Matters—and Why It’s Never Too Late

One of the best pieces of financial advice I was ever given was simple but powerful: “Don’t wait for perfect conditions to start—progress matters more than precision.” That advice applies to investing, saving, and financial planning overall. Too often, people delay action because they feel they don’t know enough or don’t have enough. Confidence grows not from perfection, but from engagement.

That belief sets the foundation for how I think about financial literacy: not as a single lesson or milestone, but as a lifelong conversation that evolves as life changes.

What Financial Confidence Really Means

Financial confidence doesn’t mean having all the answers or never feeling uncertain. It means understanding where you stand, knowing your options, and having a plan—even if that plan changes over time. It’s the difference between reacting to money challenges and proactively managing them.

Confidence grows when education keeps pace with life. And life, as we all know, rarely stays still. Below are a few practical insights and steps I encourage anyone to take at different stages in their financial journey.

Building Financial Literacy Across Every Stage of Life

Early Life & Youth: Building Awareness

Financial literacy should start early—not with complexity, but with familiarity.

Learn the basics of earning, saving, and spending.
Understand the trade‑off between spending now and saving for later.
Introduce concepts like delayed gratification, simple budgeting, and saving for goals.

Early exposure builds comfort. Comfort builds confidence.

Early Career: Creating Strong Habits

The first working years are foundational.

Understand your paycheck, benefits, and taxes.
Build a simple budget aligned to priorities.
Start saving early and learn how compound growth works over time.
Be intentional about debt, especially student loans and high-interest credit.

These habits often matter more than income level.

Mid‑Career & Growing Families: Managing Complexity

As income grows, life gets more complex.

Balance competing priorities: housing, family, education, career growth.
Build and maintain an emergency fund.
Invest with intention, not reaction.
Revisit goals regularly and adjust as life changes.

At this stage, financial literacy becomes less about tactics and more about alignment— ensuring money supports the life you’re building, not the other way around.

Pre‑Retirement & Retirement: Sustaining Confidence

Financial education doesn’t stop when you’ve accumulated wealth.

Understand income strategies, tax efficiency, and withdrawal planning.
Reassess risk tolerance as priorities shift.
Plan for healthcare, longevity, and legacy goals.
Stay engaged. Confidence comes from understanding, not ignoring finances.

Even at higher levels of wealth, clarity matters. Education remains critical to preserving peace of mind and flexibility.

Practical Steps That Apply at Any Stage

No matter where you are in your journey, these principles remain constant:

Understand Your Starting Point: You can’t plan where you’re going without knowing where you are. Take time to know your income, expenses, savings, and obligations—even at a high level. Awareness alone often reduces financial stress.
Be Intentional With Your Money: Budgets aren’t about restriction. They’re about aligning resources with what matters most. Start simple, adjust as life changes, and remember that consistency is more important than precision.
Protect Against the Unexpected: An emergency fund is one of the most powerful tools for financial confidence. It provides flexibility when life doesn’t go as planned—because it won’t. Even starting small can make a meaningful difference over time.
Manage Debt Strategically: Understand how interest and repayment terms impact long‑term outcomes. A clear plan creates momentum.
Think Long‑Term: You don’t need to be an expert to start investing, but understanding basic concepts like compound growth and time horizon can be life-changing. Starting earlier—even with modest amounts—often matters more than trying to time the market.
Keep Learning—and Ask for Help: Financial literacy is ongoing. Ask questions, use reputable resources, and don’t be afraid to seek professional guidance. Confidence grows when you understand not just what to do, but why you’re doing it.

A Shared Responsibility

Financial literacy is not a one‑time milestone—it’s a lifelong skill. The earlier it begins, the more powerful it becomes, but it’s never too late to build confidence and security. Small, consistent steps compound over time, just like good financial habits.

As leaders, employers, parents, and peers, we all have a role to play in encouraging conversations about money that are honest, practical, and empowering. My hope is that by sharing knowledge more openly, we help others avoid learning the hard way—and instead move forward with confidence.

Financial literacy isn’t just about money. It’s about freedom, opportunity, and peace of mind—at every stage of life.

Yeo & Yeo CPAs & Advisors, a leading Michigan-based accounting and advisory firm, has expanded its Ann Arbor office as part of the firm’s continued investment in its people and its ability to serve organizations across Southeast Michigan. The expanded office now spans nearly 14,000 square feet—an increase of 4,000 square feet from its previous footprint—and includes additional meeting rooms, workspace for professionals, and a large training room designed for collaboration with colleagues and clients.

As part of the expansion, Yeo & Yeo HR Advisory Solutions (YYHR) has relocated from SPARK East into the Ann Arbor office effective April 1.

The move follows Yeo & Yeo’s January 2025 acquisition of Amy Cell Talent, an Ann Arbor-based recruiting and HR advisory firm. Over the past year, the firm has expanded those services under the YYHR brand as demand for workforce strategy, outsourced and fractional HR, recruiting, and leadership development support continues to grow.

“Investing in our Ann Arbor office reflects our commitment to our people and to the organizations we serve across Southeast Michigan,” said David Youngstrom, President & CEO of Yeo & Yeo CPAs & Advisors. “As businesses navigate talent shortages and leadership transitions, bringing our HR advisors together with colleagues across accounting, advisory, and technology services allows us to deliver integrated solutions—when our clients need them most.”

YYHR provides recruiting, HR advisory and compliance consulting, compensation strategy, leadership development, and fractional HR services designed to help organizations attract, develop, and retain talent in an increasingly competitive workforce environment.

“We’ve always been deeply connected to the Ann Arbor and Ypsilanti community,” said Amy Cell, President of Yeo & Yeo HR Advisory Solutions. “This next chapter allows us to remain rooted here while continuing to support organizations across Michigan and throughout the country as they navigate today’s evolving workplace.”

The Ann Arbor office expansion reflects Yeo & Yeo’s continued investment in Southeast Michigan and strengthens the firm’s ability to support businesses, nonprofits, and community organizations across the region.

Yeo & Yeo plans to commemorate the office expansion and YYHR relocation with a ribbon cutting in May in partnership with the Ann Arbor/Ypsilanti Regional Chamber.