blog | Bowman & Company, LLP | Construction

Prepare to Receive a Social Security Administration No-Match Letter

Posted by Bowman & Co on Jun 14, 2019 10:20:00 AM
Prepare to Receive a Social Security Administration No-Match Letter

The SSA explains that it's seeking to reconcile discrepancies between the names and Social Security Numbers (SSNs) it has on file with the names and SSNs that employers report. The purpose isn't to support enforcement of immigration law, but rather to "properly post employees' earnings to the correct record." That's an important distinction because if you confused such a letter with, for example, a "tentative non-confirmation" red flag coming from the Department of Homeland Security's E-Verify system, you might unintentionally take an action that would get you into trouble.

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Topics: Government Entities, Not-for-Profits, For-Profit Entities, Funeral Homes, Construction, Professional Services, Healthcare

Picking the Right Retirement Plan (Part Three: Loans, Hardships, and Your Responsibilities)

Posted by Megan Dovie, CPA, Manager on May 28, 2019 10:30:00 AM
Picking the Right Retirement Plan (Part Three: Loans, Hardships, and Your Responsibilities)

Welcome to Part 3 of our series on retirement planning for your employees. Part 1 discussed the different types of retirement plans you can offer to your employees. Part 2 discussed the different types of eligibility requirements you can have in place for your plan and when your employees can begin to participate. This month we will briefly explore loans, hardships, timeliness of employee contribution transmittals, and what your responsibilities are if you have to terminate a plan.

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Topics: Government Entities, Not-for-Profits, For-Profit Entities, Funeral Homes, Construction, Professional Services, Healthcare, Federal Services

IRS Announces Changes for Personal Use of Employer-Provided Vehicles

Posted by Bowman & Co on May 24, 2019 2:00:00 PM
IRS Announces Changes for Personal Use of Employer-Provided Vehicles

The free use of a company car is one of the best perks an employee may receive as part of a compensation package. But the benefit to the employee isn't completely "free" under current tax law. Essentially, personal use of a company car is treated as a taxable noncash fringe benefit, subject to income tax obligations.

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Topics: Government Entities, Not-for-Profits, For-Profit Entities, Funeral Homes, Construction, Professional Services, Healthcare, Federal Services

Picking the Right Retirement Plan (Part Two: Getting Employees Onboard)

Posted by Megan Dovie, CPA, Manager on May 24, 2019 11:30:00 AM
Picking the Right Retirement Plan (Part Two: Getting Employees Onboard)

Welcome to Part 2 of our series on retirement planning for your employees. Part 1 discussed the different types of retirement plans you can offer to your employees. This month we will look at when your employees become eligible and how to get them signed up for your plan.

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Topics: Government Entities, Not-for-Profits, For-Profit Entities, Funeral Homes, Construction, Professional Services, Healthcare, Federal Services

Are You Categorizing your Employees and Contractors Correctly?

Posted by Maryann Holloway, CPA, RMA, PSA, Senior Manager on May 23, 2019 2:00:00 PM
Are You Categorizing your Employees and Contractors Correctly?

If you employ people in the state of New Jersey, one of your responsibilities is to contribute toward your employees’ unemployment compensation and state disability benefits funds under N.J.S.A. 43:21‐7. If you employ people as independent contractors, and report their earnings via Form 1099, you may think they are not employees and therefore, you do not have to contribute toward their unemployment and disability. You may very well be wrong.

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Topics: Government Entities, Not-for-Profits, For-Profit Entities, Funeral Homes, Construction, Professional Services, Healthcare, Federal Services

How can Small BUsiness Owners Reduce Social Security and Medicare Taxes?

Posted by Bowman & Co on May 17, 2019 3:45:00 PM
How can Small BUsiness Owners Reduce Social Security and Medicare Taxes?

If your small business is unincorporated, you may be fed up with paying the federal self-employment (SE) tax. This tax is how the federal government collects Social Security and Medicare taxes from self-employed individuals. However, you may be able to lower your exposure to these taxes if you structure your business as a subchapter S corporation for federal tax purposes. Here are the details on how this tax-saving strategy can work.

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Topics: Government Entities, For-Profit Entities, Funeral Homes, Construction, Professional Services, Healthcare, Federal Services

Records Retention Guidelines to Remember During Spring Cleaning

Posted by Bowman & Co on May 3, 2019 11:00:00 AM
Records Retention Guidelines to Remember During Spring Cleaning

Warm weather and rainy days bring the urge to purge. But before you clean your file cabinets or declutter your computer files, it's important to review these guidelines.

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Topics: Government Entities, Not-for-Profits, For-Profit Entities, Funeral Homes, Construction, Professional Services, Healthcare, Federal Services

If Adopted, Overtime Pay Rules May Expand to More Employees

Posted by Bowman & Co on Apr 12, 2019 11:00:00 AM
If Adopted, Overtime Pay Rules May Expand to More Employees

Today (and since 2004) salaried employees who earn at least $455 per week aren't eligible for overtime pay under the Fair Labor Standards Act, if their job duties are executive, administrative or professional (EAP) in nature. That's true no matter how many hours these employees work in a week.
Under proposed regulations, the limit would rise to $679 in 2020. So, salaried employees earning up to around $35,308 annually would be overtime-eligible even if they fall into those EAP job roles as defined by the Department of Labor (DOL).

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Topics: Not-for-Profits, For-Profit Entities, Funeral Homes, Construction, Professional Services, Healthcare

The IRS Expands the Penalty Waiver for Underpaying Income Tax

Posted by Bowman & Co on Apr 5, 2019 10:00:00 AM
The IRS Expands the Penalty Waiver for Underpaying Income Tax

The IRS announced that it is providing expanded penalty relief to certain individuals whose 2018 federal income tax withholding and estimated payments fell short of their total tax liability for the year. (Notice 2019-25)

The IRS is now lowering to 80% the threshold required to qualify for this relief. Under the relief originally announced January 16, 2019, the threshold was 85%. The usual percentage threshold is 90% to avoid a penalty.

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Topics: Government Entities, Not-for-Profits, For-Profit Entities, Funeral Homes, Construction, Professional Services

6 Common Mistakes When Taxpayers Prepare Their Own Tax Returns

Posted by Bowman & Co on Mar 29, 2019 11:00:00 AM
6 Common Mistakes When Taxpayers Prepare Their Own Tax Returns

Tax filing season kicked off as scheduled on January 28. But tax returns for 2018 may require extra time to file and process due to confusion over the sweeping tax law changes under the Tax Cuts and Jobs Act (TCJA). Most the TCJA provisions that affect individuals are effective for 2018 through 2025, unless Congress extends them.

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Topics: Government Entities, Not-for-Profits, For-Profit Entities, Funeral Homes, Construction, Professional Services