Commercial Businesses Articles

Manufacturing companies face the challenge of attracting and retaining skilled employees in today's competitive labor market. To stand out, they must build a compelling employer brand that emphasizes career growth opportunities, investment in technology, and a commitment to employee well-being. Strategies such as fostering a positive work culture, establishing clear career paths, highlighting technological innovation, and recognizing employee achievements can significantly enhance job satisfaction and productivity.

Correctly classifying workers as either employees or independent contractors is crucial to avoid costly consequences such as audits, back taxes, penalties, and lawsuits. Guidance is provided on understanding worker classification, the implications of misclassification, and the cautious use of Form SS-8 to request IRS determinations.

The federal tax code offers a strategy to mitigate business downturns by allowing certain losses to reduce taxable income in future years. The Net Operating Loss (NOL) deduction helps businesses average their income and losses over several years, ensuring fair tax payments. Recent changes under the Tax Cuts and Jobs Act (TCJA) have introduced new limits and rules for NOLs, including the elimination of carrybacks and a cap on the deduction at 80% of taxable income.

Manufacturers are facing uncertainty due to factors like shifting tariff policies, supply chain disruptions, fluctuating demand, and rising raw material costs. Rolling forecasts and financial modeling are two financial planning tools that can help manufacturers navigate this instability by providing continuous updates and testing various assumptions.  

Section 127 educational assistance plans allow businesses to provide up to $5,250 annually in tax-free educational benefits to employees. These plans cover a wide range of educational expenses, including graduate coursework, and can help attract and retain talented employees.

This presentation by Lumsden McCormick, Boosting Cash Flow: Maximizing Federal R&D Tax Credits for Manufacturers, covered key benefits of a federal R&D tax credit, the qualified activities and expenses for federal R&D tax credits, and much more.

Group captive insurance is a strategic alternative to traditional insurance models, allowing manufacturing companies to pool their risks and stabilize costs. It offers significant benefits such as cost savings, customization, control over claims, and tax advantages, making it an attractive option for companies with strong risk management practices.

Reshoring involves bringing manufacturing operations back to the United States from abroad, driven by factors such as President Trump's tariff plans, federal and state tax incentives, and the need for supply chain stability. Manufacturers must carefully assess location selection, skilled labor availability, and equipment decisions to ensure the success of reshoring efforts.

Understanding whether you qualify as a tax-favored real estate professional can significantly impact your ability to deduct rental losses. Here we explain the general rules, exceptions, and criteria that define this status, including the eligibility criteria and material participation tests. We also highlight other exceptions for non-professionals and emphasizes the importance of utilizing available tax breaks to maximize deductions and minimize tax liability.

Vendor fraud poses a significant risk to manufacturing companies, impacting their profitability and product quality. Recognizing the warning signs and implementing strict controls can help companies protect themselves from deceptive practices and maintain the integrity of their operations.