CPA Blog

Unused PTO a problem? Consider a contribution arrangement

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Published: Wednesday, 04 January 2023 11:43

Written by Phillip Strickler, CPA.CITP

A new year has arrived. For many businesses, this means employees’ paid time off (PTO) arrangements have reset. And at companies with “use it or lose it” policies, workers have likely left a few or perhaps many unused hours on the table.

It’s a growing problem. A July 2022 survey conducted by Sorbet, a provider of PTO solutions, found that 55% of the PTO offered by responding companies was left unused last year — a notable rise from only 28% in 2019. (This is the first such survey the company has done since the pandemic.) Overall, 57% of employees who participated in the study had unused PTO in 2022, up from 37% in 2019.

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SECURE 2.0 law may make you more secure in retirement

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Published: Tuesday, 03 January 2023 11:39

Written by Phillip Strickler, CPA.CITP

A new law was recently signed that will help Americans save more for retirement, although many of the provisions don’t kick in for a few years. The Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0) was signed into law on December 29, 2022.

SECURE 2.0 is meant to build on the original SECURE Act of 2019, which made major changes to the required minimum distribution (RMD) rules and other retirement provisions.

Here are some of the significant retirement plan changes and when they’ll become effective:

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Look forward to next year by revisiting your business plan

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Published: Wednesday, 28 December 2022 10:46

Written by Phillip Strickler, CPA.CITP

Businesses of all stripes are about to embark upon a new calendar year. Whether you’ve done a lot of strategic planning or just a little, a good way to double-check your objectives and expectations is to revisit your business plan.

Remember your business plan? If you created one recently, or keep yours updated, it might be fresh in your mind. But many business owners file theirs away and bust them out only when asked to by lenders or other interested parties.

Reviewing and revising your business plan can enable you and your leadership team to ensure everyone is on the same page strategically as you move forward into the new year.

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Renting to a relative? Watch out for tax traps

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Published: Tuesday, 27 December 2022 10:57

Written by Phillip Strickler, CPA.CITP

If you own a home and rent it to a relative, you may be surprised to find out there could be tax consequences.

Quick rundown of the rules

Renting out a home or apartment that you own may result in a tax loss for you, even if the rental income is more than your operating costs. You’ll be entitled to a depreciation deduction for your cost of the house or apartment (except for the portion allocated to the land). However, if your tenant is related to you, special rules and limitations may apply. For this purpose, “related” means a spouse, child, grandchild, parent, grandparent or sibling.

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