Committed to Securing Our Client Data

We hope 2019 has been off to a great start for you and those around you.

In the spirit of transparency, we wanted to provide you with information that we hope brings peace of mind to you.

In today’s cybersecurity minefield, our IT provider, GreenBean IT, has passed the SOC 2 Type II Audit; that is a rare accomplishment for a local IT managed services provider.

Read More »

Are You an S Corporation Stockholder?

Are you an S Corporation stockholder? Are you taking reasonable compensation in the form of wages? S corporation compensation requirements are often misunderstood and abused by owner-shareholders. An S corporation is a type of business structure in which the business does not pay income tax at the corporate level and instead distributes (passes through) the income, gains, losses, and deductions to the shareholders for inclusion on their income tax returns. If there are gains, these distributions are considered return on investment and therefore are not subject to self-employment taxes.

Read More »

Disaster Recovery Statistics

Data loss has serious financial implications. Downtime can occur at any time. Even something as small as an employee opening an infected email, or as significant as a natural disaster.

Despite that, 75% of small businesses have no business continuity plan in place.

We have compiled an interesting mix of disaster recovery statistics from a variety of sources. A disaster recovery plan is a lifeboat for your business.

Read More »

Benefits of Being SOC Audit Certified

Due to the increase in user entities outsourcing various processes and segments of their business, the demand for assurance of confidentiality and privacy of those service organizations has become a standard part of conducting business. In 2011, SAS 70 was changed into SOC audit (Service Organization Controls reports), to prevent the continued misuse of the old standard for assessing internal controls. The two most common types of audits, SOC 1 and SOC 2, can be broken down into two types of reports (Type I and type II), based on the impact of those internal controls on financial reporting and the time period being audited.

Read More »

How Alimony is Treated for Tax Purposes

Alimony is the term used for payments to a separated spouse or ex-spouse as part of a divorce or separation agreement. Since 1985, to be alimony for tax purposes, the payments:

  • Must be in cash, paid to the spouse, ex-spouse, or a third party on behalf of a spouse or ex-spouse;
  • Must be required by a decree or instrument incident to a divorce, a written separation agreement, or a support decree;
  • Cannot be designated as child support;
  • Will be valid alimony only if the taxpayers live apart after the decree is issued or the agreement is signed. Spouses who share the same household don’t qualify for alimony deductions. This is true even if the spouses live separately within the dwelling unit.
  • Must end on the death of the payee; and
  • Cannot be contingent on the status of a child (that is, any amount that is discontinued when a child reaches 18, moves away, etc., is not alimony).

Read More »

New Business Tax Law Highlights

Tax Cuts and Jobs Act offers favorable tax breaks for businesses

Signed into law on December 22, the Tax Cuts and Jobs Act (TCJA) contains a treasure trove of tax breaks for businesses. Overall, most companies and business owners will come out ahead under the new tax law; however, there are a number of tax breaks that were eliminated or reduced to make room for other beneficial revisions. Here are the most important changes in the new law that will affect businesses and their owners.

Read More »