Posts Tagged "benefits"

2018 Social Security changes announced

Posted on Nov 13, 2017

The Social Security Administration stated there will be a 2 percent cost-of-living adjustment (COLA) to monthly Social Security and Supplemental Security Income benefits for 2018. This is the largest increase since 2012. Up to $128,700 in wages will be subject to Social Security taxes (up $1,500 from 2017). Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and...

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IRS launches new “Misclassification Initiative”

Posted on Jul 28, 2015

How you classify your workers – as “independent contractors” or “employees” – matters a great deal to the IRS. The IRS is aware that employers prefer to treat workers as independent contractors to avoid paying fringe benefits and payroll taxes. The IRS estimates that 80% of workers who are classified as independent contractors are actually employees. About 100 new auditors have been hired with the specific task of investigating misclassifications, and the government is estimating that the crackdown will generate at least $7 billion in revenue over the next ten years. For guidance in classifying your workers, contact our office. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in the McLean and Tysons Corner, VA. Gilliland & Associates specializes known for our superior knowledge and aggressive interpretation and application of tax laws, we help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and...

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Employees get more than a paycheck

Posted on Jan 14, 2014

Surveys show that employees tend to underestimate the amount of money that their employer is spending on employee benefits. It’s up to you to get them to realize their paycheck is only part of the compensation they are receiving as employees. Make your employees aware of their total compensation package. After all, your employees can’t appreciate all those extra dollars the company pays if they don’t know about them. In conjunction with preparing an employee’s W-2 for 2013, prepare a list of the amounts that make up his or her total compensation package. Consider going over each employee’s total benefits package during the employee’s annual review. Your benefits summary should include such items as the following: salary, bonus, pension plan contribution, deferred compensation, medical and dental insurance, life insurance, disability insurance, FICA (social security & Medicare), worker’s compensation, and unemployment insurance. Also include the number of paid vacation days, personal days, sick days, and the value of employer-provided benefits such as work clothing, parking, and meals. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in the McLean and Tysons Corner, VA. Gilliland & Associates specializes known for our superior knowledge and aggressive interpretation and application of tax laws, we help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+ <https://plus.google.com/108764776146415485651/posts> , LinkedIn <http://www.linkedin.com/in/gillilandcpa> , Facebook <https://www.facebook.com/gillilandcpa> , and Twitter...

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Are disability insurance benefits taxable?

Posted on Jan 9, 2014

Have you decided to include disability insurance as part of your financial plan? If so, the next decision is how to pay the premiums. Here’s why: The choice you make now can affect the taxability of the benefits received later. For example, say your employer offers disability insurance as part of a cafeteria plan. When you sign up, the premiums are deducted from your paycheck before taxes. You’re getting a current break in the form of excluding the premiums from income, and later payouts of policy benefits are generally taxable to you. What if you pay part of the premium with after-tax income and your employer pays the rest? In that case, policy benefits are split into taxable and nontaxable portions. Illustration: You pay 40% of the premium and your employer pays 60%. Benefits are 60% taxable. If you opt to buy a policy yourself, premiums are not deductible on your personal tax return, and benefits you collect are not taxable. Like other aspects of financial planning, choosing insurance involves weighing your alternatives and selecting what’s most suitable for achieving your goal of protecting and growing assets. Give us a call. We’ll help ensure that your financial plan remains on track. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in the McLean and Tysons Corner, VA. Gilliland & Associates specializes known for our superior knowledge and aggressive interpretation and application of tax laws, we help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+ <https://plus.google.com/108764776146415485651/posts> , LinkedIn <http://www.linkedin.com/in/gillilandcpa> , Facebook <https://www.facebook.com/gillilandcpa> , and Twitter...

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Eggs, baskets, and investments

Posted on Sep 5, 2013

A well-diversified portfolio spreads out your investment risk. However, you can easily end up with more eggs in one basket than you intended. Here are some investment tips. Look at the big picture. The assets inside and outside your retirement plans should be considered together when you are designing an investment strategy and balancing your portfolio. Selecting the same investments for your personal accounts and your retirement accounts may decrease your diversification and increase your risk. Make sure your mutual funds are diversified. One of the main benefits of owning a mutual fund is diversification. However, your mutual fund might not be as diversified as you think. Consider these areas: * Watch out for top-heavy funds. For example, your fund’s manager favors a few stocks and invests a big chunk of the fund’s assets in those stocks. You shouldn’t necessarily steer clear of concentrated mutual funds, but owning a single concentrated fund may expose you to more investment risk than you bargained for. * Watch out for overlap. It’s possible to own different funds that own the same stocks or that own similar stocks in the same industries. For example, you might own a technology fund that invests 10% of its assets in Microsoft. You might also own a growth fund that invests 10% of its assets in Microsoft. * Watch the turnover. Although funds generally list their largest holdings in their prospectus and their annual report, that information represents a snapshot in time. If you own a fund that engages in active trading (a high turnover ratio), its holdings can change considerably from one day to the next. You should review your fund’s holdings from time to time to ensure you still have the diversity you desire. Many mutual funds periodically update their holdings on their websites. If you have questions about your investments and how they fit into your overall financial picture, give us a...

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