Recently, Illinois became one of the states to permit formation of low-profit limited liability companies (often called “L3Cs”), by adopting 805 ILCS 180/1-26, as added by P.A. 96-126 (the “Act”). The main advantages of L3Cs are their tax treatment and flexibility generally associated with the limited liability companies. Unlike traditional not-for-profit entities, L3Cs do not [...]
There aren’t many recent cases challenging companies’ hiring practices. This is primarily due to the secluded nature of the job interviews and the associated difficulties with proving such practices. However, if inappropriate interview questions are persistent and asked of multiple job applicants, an employer may find itself in a costly legal action, defending against the [...]
Individual income tax information by state and zip code for tax year 2008 is now available to download (in excel format) from the IRS TaxStats' website. Please click here to find the information or follow this link - www.irs.gov/taxstats/index.html. .................................................................................................................................. Should you have any questions regarding the above-mentioned issues or other tax-related matters, please contact [...]
Effective January 1, 2011, the Wisconsin legislature adopted a new law, intended to address perceived violations of the employee classification laws by the construction industry. The new law, 2009 Wisconsin Act 292 (the “Act”), gives the Wisconsin Department of Workforce Development (the “DWD”) substantial enforcing power to investigate and enforce worker misclassification issues involving employers [...]
Have you ever wonder why some employers have a union-free environment, have very low employee turnover, and high employee satisfaction, while others, have a workplace that has voted to a union representation or are constantly targeted by the union representatives? Often, the answer lies in the management style. 1. Inadequate Communication Frequently, when a union [...]
The Internal Revenue Service has announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes. The rate will increase to 55.5 cents a mile for all business miles [...]
When computing compensation for employees and shareholders, S corporations may run into a variety of issues. The information below may help to clarify some of these concerns. Reasonable Compensation S corporations must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation before any non-wage distributions may be [...]
Heath and accident insurance premiums paid on behalf of the greater than two percent S corporation shareholder-employee are deductible and reportable by the S corporation as wages for income tax withholding purposes on the shareholder-employee’s Form W-2. These benefits are not subject to Social Security or Medicare (FICA) or Unemployment (FUTA) taxes. The additional compensation [...]
The Alternative Minimum Tax (also called the “AMT”) attempts to ensure that anyone who benefits from certain tax advantages pays at least a minimum amount of tax. You should know the following seven facts about the AMT to prepare yourself for this tax season: Certain tax laws provide to some taxpayers many tax benefits, allowing [...]
With technology making it easier than ever for people to operate a business out of their house, many taxpayers may be able to take a home office deduction when filing their 2009 federal tax return next year. Here are five important things that you should know about claiming the home office deduction. Generally, in order [...]
