The US Treasury has announced that all tax returns and income tax payments due on April 15, 2020 are now due on July 15, 2020 without incurring any interest or penalties. This deferral includes any income tax due with the 2019 tax return and the 2020 first-quarter estimate up to an aggregate amount of $1 Million dollars for individuals and $10 Million for C Corporations. The 2020 second-quarter estimate is still currently due on June 15, 2020. Most states have not yet issued any 2019 tax relief provisions in relation to COVID-19. We will provide additional updates as new information from the states becomes available. For the health and safety of our clients and employees, we are asking that all tax information be sent to us electronically, via one of our secure online file exchanges, or through the mail. All completed tax returns will be delivered either electronically or through the mail. We are currently not offering in-person pick up of any tax returns. Our online tax organizer allows you to answer the questions in the tax organizer and upload your paperwork. If you have not already requested an online organizer, please email the request to firstname.lastname@example.org. […] Details
In the simplest of worlds, an employee effectively performs a set of tasks on an agreed-upon schedule and you pay him or her a fair wage. End of story. But, in the real world, employers need to craft a compensation philosophy: a formal statement outlining their belief system and approach to all the different ways they compensate employees. Here are four compensation philosophy questions to ponder: 1. Do small annual raises for everyone really make sense? Many employers have dropped the practice of spreading around modest (for example, 2% or 3%) raises broadly, because it limits funds available to give substantial pay raises to top performers. Often these raises are referred to as “cost of living adjustments,” but the value of a job doesn’t necessarily move in lockstep with inflation (even when inflation is low). 2. Are you using the right benchmarks? Although salary surveys can tell you average pay levels for jobs in your labor market, they can be misleading. This is because, in your own organization, an employee whose job pays, for instance, $50,000 on average in your community might be worth much more — or less — to you because of factors distinctive to your organization. An […] Details
Restricted gifts — or donations with conditions attached — can be difficult for not-for-profits to manage. Unlike unrestricted gifts, these donations can’t be poured into your general operating fund and be used where they’re most needed. Instead, restricted gifts generally are designated to fund a specific program or initiative, such as a building or scholarship fund. It’s not only unethical, but dangerous, not to comply with a donor’s restrictions. If donors learn you’ve ignored their wishes, they can demand the money back and sue your organization. And your reputation will almost certainly take a hit. Rather than take that risk, try to encourage your donors to give with no strings attached. Personal touch Some donors simply don’t realize how restricted gifts can prevent their favorite charity from achieving its objectives. So when speaking with potential donors about their giving plans, praise the benefits of unrestricted gifts. Explain how donations are used at your organization, offering hard numbers and examples where needed. Be as upfront as possible and give them as much information as you can about your organization. To make unrestricted giving as easy as possible, give donors (and their advisors) sample bequest clauses that refer to the general mission […] Details
When you file your 2018 income tax return, you’ll likely find that some big tax law changes affect you — besides the much-discussed tax rate cuts and reduced itemized deductions. For 2018 through 2025, the Tax Cuts and Jobs Act (TCJA) makes significant changes to personal exemptions, standard deductions, and the child credit. The degree to which these changes will affect you depends on whether you have dependents and, if so, how many. It also depends on whether you typically itemize deductions. 1. No more personal exemptions For 2017, taxpayers could claim a personal exemption of $4,050 each for themselves, their spouses and any dependents. For families with children and/or other dependents, such as elderly parents, these exemptions could really add up. For 2018 through 2025, the TCJA suspends personal exemptions. This will substantially increase taxable income for large families. However, enhancements to the standard deduction and child credit, combined with lower tax rates and other changes, might mitigate this increase. 2. Nearly doubled standard deduction Taxpayers can choose to itemize certain deductions or take the standard deduction based on their filing status. Itemizing deductions when the total will be larger than the standard deduction saves tax, but it makes […] Details
Tyler, Simms & St. Sauveur, CPAs, P.C.
Phone: +1 (603) 653-0044