CPA Blog

4 keys to telecommuting success

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Published: Thursday, 14 January 2016 14:33

Written by Phillip Strickler, CPA.CITP

If your company is getting aboard the telecommuting trend, consider the following four keys to success:

1. Set a trial period. Begin with a two- to six-month period during which the employee and his or her manager can get a feel for just how (and whether) this arrangement will work. If either side is unhappy at the end of the trial period, make adjustments or scrap the idea entirely.

2. Manage for results. Generally, telecommuters should be managed based on results — not on close scrutiny of everyday work methods. That said, instruct managers to schedule regular telephone calls and request status reports (as necessary) to stay in the loop.

3. Don’t forget about them. Just because they work remotely doesn’t mean they’re no longer part of the team. Include telecommuters in companywide e-mail announcements and invite them to meetings or events held at the office — even if you think they won’t be able to attend.

4. Provide quality technology. Telecommuters should have a reliable computer, Internet connection, telephone (with voice mail), and all the necessary software and network connections. This may seem obvious, but many people launch into telecommuting without considering the nuts and bolts of doing so.

Telecommuting arrangements can also save your company money, such as on office space. 

© 2016

Review your fringe benefits to see what you might be missing

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Published: Tuesday, 05 January 2016 13:10

Written by Phillip Strickler, CPA.CITP

A business can offer many things as fringe benefits. So it’s a good idea to occasionally review the possibilities to see whether you might be missing something that could help you attract and retain the best employees. Two broad categories that are generally deductible by the employer and tax-free to employees are:

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The PATH Act provides tax relief for 2015 and beyond

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Published: Tuesday, 22 December 2015 08:27

Written by Phillip Strickler, CPA.CITP

On December 18, the Senate passed — and the President signed into law — the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), which the House had passed on December 17. The act extends certain tax relief provisions that expired at the end of 2014. In many cases, it makes the breaks permanent.

These provisions can produce significant savings for taxpayers, but you may need to act soon (by December 31, 2015) to take advantage of them on your 2015 tax return. Here’s a brief summary of the extended breaks that may be most likely to benefit you or your business.

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You still have time to set up your 2015 retirement plan

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Published: Wednesday, 16 December 2015 12:08

Written by Phillip Strickler, CPA.CITP

As a business owner, you shoulder many responsibilities — but have some perks as well. One benefit worth considering is setting up your own retirement plan that allows you to make larger contributions than you could as an employee.

For example, the maximum 2015 employee contribution to a 401(k) plan is $18,000 — $24,000 if you’re age 50 or older. Compare these limits to the amounts available to a business owner (that is, a “self-employed” individual) under:

• A profit-sharing plan, for which the 2015 contribution limit is $53,000 — $59,000 if you’re age 50 or older and the plan includes a 401(k) arrangement, or
• A defined benefit plan, for the maximum future annual benefit toward which 2015 contributions can be made is generally $210,000.

More good news: As long as you set up one of these plans by December 31, 2015, you can make deductible 2015 contributions to it until the 2016 due date of your 2015 tax return.

Additional rules and limits do apply. For instance, your employees generally must be allowed to participate in the plan, provided they meet the requirements for doing so.