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November 2012 Articles
Business Planning
Lease Agreements
Employee v. Subs
Employment Agreements & Docs
Annual Meetings for Owners
Local and State Taxes
Employee Retirement Plans
Employee Medical Insurance
Employing Family Members
Owner Payroll

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Dear Clients and Friends - 


We are writing to summarize some of the more important business compliance concepts that you should consider implementing, in order to improve the fiscal management of your business, as well as to remind you of some planning ideas that are available to you and your company.

1. Business Planning


Ensure your company's future with a written business plan. A financial review of your company and it's performance will help you plan for the unexpected.


Read More to learn about designing and writing a business plan. 

2. Lease Agreements


Having a lease agreement that clearly lays out the lease period and the relationship between a company and the entity it leases from can eliminate unexpected disputes.


Read More to learn if your company has an appropriate lease agreement.

3. Employee vs. Subcontractor Relationships 

Sometimes company owners believe they have subcontracted with an individual, only to find out later that the individual contends to be an employee of the company, making them eligible for payroll tax and employee benefit coverages. 


Read More to review subcontractor verses employee relationship terms.

4. Employment Agreements and Related Documentation


If you don't have a written employment agreement and supporting documentation, you might be leaving yourself open to misunderstandings, or other more serious problems. 


Read More to see a sample employment agreement template for you to consider, while you draft a custom version for your business.

5. Annual Meetings for Owners


Annual meetings, though only required by state law for corporate shareholders, are beneficial because they help to ensure proper management. It's important hold meetings that fit your business type and management style. 


Read More to find out about guidelines and topics that you should consider discussing.

6. Local and State B&O and Sales Tax


One of the most often misunderstood areas of business tax law pertains to how excise and sales taxes are calculated on business revenues earned. It is critical that you understand the rules that your business falls under so that you know how much local and state B&O taxes you are required to pay, and also so you know how much you need to charge your customers/clients in terms of sales taxes.


Read More to learn more about local and state B&O taxes, sales and use taxes.

7. Employee Benefits - Retirement Plans


Business owners have many options to choose from when considering the best retirement plan for their company. 401k type plans offer maximum salary deferral for employees, as well as the ability for employees to borrow from their respective retirement account, and a SIMPLE IRA plan is low in administrative costs and offers other incentives.


Read More to refer to a list of plans, comparing plan features and your employee benefit options.

8. Employee Benefits - Medical Insurance


Not only is the cost of medical insurance premiums paid by the employer income tax deductible, they are also a tax efficient means of "compensating" employees. Additionally, under the new Affordable Health Care Act, employers are able to receive credits for premiums paid.  


Read More to learn about the different medical insurance options available to you and your employees.

9. Employing Family Members


Employing and paying family members has tax benefits. For example, by hiring a spousal employee, the company may qualify for a medical reimbursement plan, which allows the out of pocket medical costs of the employed spouse to be fully tax deductible.


Read More to learn about the benefits and deductions that your company can receive by employing family members.

10. Owner Payroll


The most effective tax planning strategy for business owners is to manage the amount of payroll taxes that are paid. You can accomplish this by setting up an S Corporation, or converting to one, if your business is currently a C Corporation, or an LLC. 


Read More to learn about S Corporations and payroll tax management.

Contact Us - We are Here to Assist You!


Please contact us if we can assist you with understanding the various rules and regulations, as they pertain to your company, or if you'd like to consider implementing some of the planning ideas discussed above. In order to minimize the potential negative impacts of the required rules and regulations, and to optimize the benefit of the planning opportunities, we hope that you will take us up on our offer to help you and your company understand and implement the concepts that specifically apply to you and your company.


     Best of success to you and your business!

     Wittenberg CPA, PS