Advisory Articles
How Switching to an S Corporation Can Lower Your Self-Employment Tax Bill
Posted by Kathryn Mellon on August 20, 2025
Converting your unincorporated small business to an S corporation can significantly reduce your self-employment tax liability by allowing you to take part of your income as distributions rather than salary. While this strategy offers tax advantages, it also comes with administrative requirements and considerations around reasonable compensation and retirement contributions.
IRS Health Savings Account Updates for 2026
Posted by Kathryn Mellon on May 27, 2025
The IRS has announced the inflation-adjusted amounts for Health Savings Accounts (HSAs) for 2026, allowing employees to save slightly more in their accounts. For individuals with self-only coverage under a high-deductible health plan (HDHP), the contribution limit is set at $4,400, while for family coverage, it is $8,750. HSAs offer tax advantages, including pre-tax contributions and tax-free withdrawals for qualified medical expenses.
Guidelines for Ensuring Payroll Tax Compliance in Small Businesses
Posted by Kathryn Mellon on March 24, 2025
Small businesses can ensure payroll tax compliance by staying updated with regulatory changes, understanding federal withholding, adhering to filing and deposit deadlines, maintaining organized records, and seeking professional advice. These practices help avoid fines, maintain good employee relationships, and stay legally compliant.
Tax Implications of Business Succession
Posted by Cheryl A. Jankowski on March 17, 2025
The strategies for transferring business ownership include family transfers, trusts, employee buyouts, ESOPs, and sales to outside buyers. Each option is analyzed for its tax consequences, such as gift tax, estate tax, capital gains tax, and corporate deductions, providing a comprehensive guide to succession planning.
The Importance of a Buy-Sell Agreement for Business Co-Owners
Posted by Benjamin Schuver on July 15, 2024
A buy-sell agreement is essential for businesses with co-owners, as it provides financial protection, ensures ownership stability, and helps avoid IRS complications. This agreement outlines how a co-owner's share will be handled in case of events like death or disability, often funded through life insurance to facilitate the buyout process. Properly drafted agreements safeguard the interests of all parties involved and ensure smooth transitions.
Record Guidelines for Income and Expenses During an IRS Audit
Posted by Michelle Waddell on April 08, 2024
A case study details the IRS scrutiny and how important recording keeping is.
Correctly Reporting Independent Contractors to the IRS
Posted by Kevin Smeader on January 10, 2024
It is essential to maintain completed Form W-9s on file for independent contractors. To assist you in obtaining this crucial information from workers and filing it with the IRS, we provide valuable tips.