It’s almost that time of year again! If you’re not ready, file for an extension
- ByPolk & Associates
- Apr, 08, 2022
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The clock is ticking down to the April 18 tax filing deadline. Sometimes, it’s not possible to gather your tax information and file by the due date. If you need more time, you should file for an extension on Form 4868. An extension will give you until October 17 to file and allows you to avoid incurring “failure-to-file” penalties. However, it only provides extra time to file, not to pay. Whatever tax you estimate is owed must still be sent by April 18, or you’ll incur a failure-to-pay penalty and it can be steep. Contact us if you have questions about IRS penalties or about filing Form 4868.
Undertaking a pay equity audit at your business
- ByPolk & Associates
- Apr, 08, 2022
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Providing equal compensation to employees who perform the same or similar jobs, while accounting for differences in experience and tenure, isn’t easy. That’s why every business should consider undertaking a pay equity audit. Its purpose is to: 1) uncover compensation disparities, 2) identify drivers behind them, and 3) develop ways to address pay inequity. The effort typically begins by assembling a cross section of participants from multiple departments to gather data. Next, you must determine how to group employees in substantially similar roles. Last, you need to crunch the numbers. This task could involve complex statistical analyses for larger companies. Contact us for help.
Fully deduct business meals this year
- ByPolk & Associates
- Apr, 08, 2022
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The federal government is helping to pick up the tab for certain business meals. Under one of the COVID-19 relief laws, the usual deduction for 50% of the cost of business meals is doubled to 100% for food and beverages provided by restaurants in 2022 (and 2021). So, you can take a customer out for a business meal or order take-out for your team and write off the entire cost — including the tip, sales tax and any delivery charges. In the event that food and beverages are provided during an entertainment activity, the food and beverages must be purchased separately from the entertainment. Alternatively, the cost can be stated separately from the cost of the entertainment on one or more bills.
Selling mutual fund shares: What are the tax implications?
- ByPolk & Associates
- Apr, 08, 2022
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For tax purposes, the rules involved in selling mutual fund shares can be complex. If you sell appreciated fund shares that you’ve owned for more than one year, the profit will be a long-term capital gain. The top federal income tax rate will be 20% and you may also owe the 3.8% net investment income tax. One challenge is that certain mutual fund transactions are treated as sales even though they might not seem like it. For example, many funds provide check-writing privileges. Each time you write a check on your fund account, you’re selling shares. Another problem may arise in determining your basis for shares sold. We can explain in greater detail how the rules apply in your situation.
AI for small to midsize businesses isn’t going away
- ByPolk & Associates
- Apr, 08, 2022
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Artificial intelligence (AI) has risen to great prominence in certain industries. But it hasn’t reached every small to midsize business yet. This will likely change as the technology becomes less expensive and more widely available. AI generally refers to using computers to perform complex tasks typically thought to require human intelligence, such as image perception, voice recognition and problem-solving. Just a few ways that AI could help your company include: 1) expediting the hiring process by soliciting and screening candidates, 2) more efficiently and effectively communicating with customers and prospects, and 3) strengthening your cybersecurity systems. Contact us for more info.