Will this IRS due date extension hold up your tax return?

Will this IRS due date extension hold up your tax return?

In December, the IRS extended the time to file for employers wh

o were required to provide health care information forms such as Form 1095-C to employees. Because the new due date is March 31, you may be ready to file your federal income tax return before you receive Form 1095-C. The IRS says that for 2015, you do not need to wait to receive the form. Instead, you can rely on other information to complete and file your return. Contact us if you have questions about tax forms you may be receiving regarding your health insurance coverage.

Stay compliant with minimum wage laws

Stay compliant with minimum wage laws

With some exceptions, the federal minimum wage is $7.25 per hour. But your state may require you to pay a different rate, and that rate may have changed as of January 1. When employees are subject to both state and federal minimum wage laws, the law says you need to pay the higher of the two. Remember that overtime rates are also affected by the minimum wage. Review your payroll practices, including the posting of required notices to employees.

Do younger workers value your company's benefits?

Do younger workers value your company's benefits?

 You may consider the fringe benefits your company provides to employees to be a valuable recruiting and retention tool. But recent studies indicate that younger workers – those born after 1980 – may not agree. The studies show that these workers prefer paid time off or cash to more traditional benefits. In addition, they may not be as aware of the benefits your company offers if you're not communicating in ways they're famil
iar with, such as text or instant messages.

Complaints can be opportunities

Complaints can be opportunities

When a customer complains, think of it as three opportunities in one.

●  An opportunity to get feedback on something that's not working right in your organization.

●  An opportunity to convert a disgruntled customer into a loyal customer.

●  An opportunity to head off negative publicity.

Here are four steps to take to convert a complaint into a positive outcome.

1. The initial response. Be respectful and helpful. Avoid becoming defensive or saying "it's not our fault."

2. Understand the complaint. What's the true complaint? It may not be easy to stay calm when faced with an angry rant, but making sure your customer knows you're listening can defuse hostility and ill will. Gathering the facts provides valuable feedback to help you pinpoint the problem and find out what went wrong.

3. Fix the problem. Have established procedures so your employees know who has the responsibility and the authority to correct a problem. Do employees need managerial approval to compensate a customer for inconvenience with an upgrade or refund? What actions can your employee take to remedy the customer's immediate concern?

4. Follow up. A phone call or letter within a reasonable time can ensure the problem has been resolved and turn the customer from "disgruntled" to "loyal."

Three positive steps to financial well-being

Three positive steps to financial well-being

While you're gathering information to prepare your 2015 tax return, set aside time for a financial review. Here are steps to get started.

●  Compile a year-end list of your assets and debts and compare the list to last year. Are you gaining or losing ground? What actions can you take to improve your financial situation in 2016?

●  Review your insurance. Do you have disability insurance to replace take-home pay if you become incapacitated? What about life insurance – will the benefit provide enough cash to pay your family's expenses in the event something happens to you or your spouse? Is your home protected with replacement value property insurance? What about insurance for automobile accidents or lawsuits?

●  Update your will and estate plan. What changed during 2015? Did you marry? Divorce? Have a child? Move to a new state? Receive an inheritance? All of these events can affect your planning. This year, you can leave up to $5,450,000 to your heirs with no federal estate tax liability. But that doesn't mean you can ignore estate planning, which includes expressing your wishes for who will make decisions for you in times of emergencies as well as who will receive your assets.

For more suggestions, call us. We're here to help.

Corporate minutes’ support tax deductions

Corporate minutes’ support tax deductions

Well-documented corporate minutes can provide valuable supporting evidence if the IRS questions choices you make on your tax returns. Minutes are especially important when related-party transactions are involved, such as payments, loans, or distributions between the company and you or other owners. For example, the IRS may challenge the amount of your compensation. Corporate minutes that document the factors considered by the board in approving the compensation can be a defense against this type of challenge.

Another area to consider is the amount of earnings your business retains instead of distributing the funds as taxable dividends. A penalty can apply to retained earnings over a certain limit unless the needs of your business justify the amount. Corporate minutes can help by spelling out the reasons your company needs to retain funds – for example, to purchase assets or for working capital.

Does your company have a tax-qualified retirement or a stock option plan? The minutes should show

decisions by the board when adopting or modifying the plan. Other information to include: annual decisions on the contribution percentage made to profit-sharing plans, and the amount of fringe benefits, such as medical reimbursement accounts.

If your corporate minutes need updating, we suggest you contact your attorney.

Three tips to start the tax filing season

Three tips to start the tax filing season

●  Check whether your children need to file a 2015 tax return. They'll need to file if wages exceeded $6,300, self-employment income was over $400, or investment income exceeded $1,050. When income includes both wages and investment income, other thresholds apply.

●  Consider whether you'll contribute to a Roth or traditional IRA. Since you have until April 18 to make a 2015 contribution (April 19 if you live in Maine or Massachusetts), you can schedule an amount to set aside from each paycheck for the next few months. The maximum contribution for 2015 is the lesser of your earned income for the year or $5,500 ($6,500 when you're age 50 or older). Be sure to tell your bank or other trustee that these 2016 contributions are for 2015 until you reach the 2015 limit. You can then deduct these 2016 amounts on your 2015 tax return for a quicker tax benefit.

●  Do you need to file a gift tax return? For 2015, you may need to file a return if you gave gifts totaling more than $14,000 to someone other than your spouse. Some gifts, such as direct payments of medical bills or tuition, are not subject to gift tax. Gift tax returns are due at the same time as your federal income tax return.

Call us for more tips on getting ready for filing your 2015 income taxes.