You may have a teen in your family who holds down a part-time job or works full-time during the summer. You can help your child lay the groundwork for future retirement security early on by encouraging your child to open an individual retirement account (IRA). You may, or may not, get some resistance, especially if your child has other plans for spending the money. However, you should persist since the benefits can be significant over the long term. Here are some points you can bring up as … [Read more...] about Help Your Working Teen Get a Jump-Start on Saving
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Keeping It SIMPLE
A SIMPLE IRA is an option for small business owners who do not currently have a retirement plan in place, but would like to have one. This particular type of retirement plan has several attractive features. It deliver significant benefits to both employers and their employees. Business Tax The Savings Incentive Match Plan for Employees (SIMPLE) is a retirement savings plan. Employers with 100 or fewer employees who earn $5,000 or more in compensation. At First, with a SIMPLE IRA, employees … [Read more...] about Keeping It SIMPLE
Small Business Taxes: Who Pays What?
There are various federal taxes that may apply to your small business. The type and form of business you operate determines what taxes you must pay and how you pay them. At the federal level, several different taxes may apply. Excise Taxes The IRS defines an excise tax as a tax imposed on the sale of specific goods or services, or on certain uses. Federal excise tax is typically imposed on the sale of items such as tobacco, fuel, alcohol, tires, heavy trucks and highway tractors, and airline … [Read more...] about Small Business Taxes: Who Pays What?
Starting a Side Gig in 2022? Your New Tax Obligations
It’s not just self-employed individuals who must pay estimated taxes. Here’s what you need to know. W-2 income tax withholding isn’t perfect. You’ve probably had years when you owed more than you expected to on April 15. Or you were pleasantly surprised to receive a sizable refund. The idea, of course, is to try to come out as even as possible. You can usually do this by adjusting your withholding when you experience a life change like taking on a mortgage or having a baby. Income taxes … [Read more...] about Starting a Side Gig in 2022? Your New Tax Obligations
What’s Taxable to an S Corporation Shareholder?
S corporation shareholders have an added reason to worry about their company's annual performance: It has a direct impact on their own income taxes. How It Works Unlike a regular C corporation, an S corporation usually doesn't pay federal income taxes itself. Instead, each shareholder is allocated a portion of the corporate income, loss, deductions, and credits on a special "K-1" tax form. The shareholder then must report the items listed on the K-1 on his or her personal tax return. The … [Read more...] about What’s Taxable to an S Corporation Shareholder?
8 Accounting Tips Every Small Business Owner Should Know
As a small business owner, you probably think about tracking expenses and keeping up with tax deductions, but these aren't the only critical accounting tips you should know. Whether you've been in business for a while or you're a new start-up entrepreneur, read on for our 8 best accounting tips. 1. Outsource your bookkeeping. For every business, bookkeeping is critical. This essential task is keeping organized records of your business's income and expenses. If you're like most small business … [Read more...] about 8 Accounting Tips Every Small Business Owner Should Know