Tax/Accounting
Small Business Mythbusters: Direct Deposit vs. Paper Paychecks
Myth: Paper paychecks are for small businesses; direct deposits are for big companies. Your business may be small, with just a few employees, but that doesn’t mean you can’t mimic big companies when it comes to issuing paychecks. If you’re still distributing paper checks to your employees, you may want to consider the advantages of…
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Consultant’s Corner: Forming a General Partnership
Question: I am ready to start a business with a partner. What steps should I take? You can review information for forming a General Partnership at state and legal websites; however, these are the general steps required for formation of this entity type: Choose a business name File a trade name Draft and sign a…
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Consultant’s Corner: Loans from Family Members
Q. What is the lowest annual interest rate allowed by the IRS on a loan from a family member? The tax rules governing below-market and related-party loans are complex, with a number of exceptions. To understand all of the tax implications, you should consult your tax adviser or CPA before you enter into or renegotiate…
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Consultant’s Corner: Surviving an IRS Schedule C Audit
Question: I have just received my first notice from the IRS indicating that there will be a Schedule C Audit. What should I expect? The IRS should have provided you with an Information Document Request that will tell you specifically what they want to review in this first meeting. Review this document request with your…
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You Can Get a Tax Credit for Hiring a New Employee!
Did you know that it’s possible to hire a new employee and get a tax credit for it? The Work Opportunity Tax Credit (WOTC) program provides a tax credit for employers who hire workers who are members of specific groups, such as veterans, SNAP recipients, and Vocational Rehabilitation Referrals, among many others. When you participate…
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Consultant’s Corner: Do I Need a Separate Business Bank Account?
Question: Medicare and other insurance take direct deposits into my account. Is it better to use a different bank for business and personal so as to limit any errors or confusion? Should I open two accounts: one for direct deposit from the insurance companies and another to pay bills? Regardless of the business structure (sole…
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Should You Put Your Accounting in the Cloud?
More and more businesses are moving their accounting systems into the cloud, and finding huge benefits at tax season. It is a particularly big benefit to reducing tax preparation time, with all the information accessible in one place, and also available to your accountant throughout the year for regular check-ins that reduce the chance of…
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How New Tax Cuts Impact an LLC
Q: How do the new federal tax rules impact the taxation of my LLC business? The recently enacted Tax Cuts and Jobs Act of 2017 (TCJA) took effect January 1st, 2018 and will have a significant impact on the federal income tax treatment of business pass-through entities, which for the TCJA are defined as sole…
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What is This Financial Statement?!
You probably started your business because you love what you do. But you’re probably a lot less passionate about the various and sundry financial statements that necessarily require so much of your time. The ADP blog team takes a look at many of the business financial statements you are responsible for completing, including the balance…
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What Tax Planning Should You Do Before the Year Ends?
With the New Year fast approaching, it’s time to make some final decisions about your tax plan for the year. The ADP blog team has rounded up some tips from a small-business tax specialist with some things you can look at and do in the final weeks of the year, particularly for businesses focused on…
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