Tag Archive for: Small Business

How the Tax Cuts and Jobs Act Will Affect Small Business Owners

MiBiz explains how small businesses may benefit from Pass-Through Deduction, Flat C Corp Tax Rate, Bonus Depreciation, and Accrual or Cash Accounting. The article even features our very own Sally Steffes, CPA!  Click the link below to read more!

Small Business Owners See Benefits From Pass-Through Deduction, Flat Tax Rate

Fraud Happens. Learn the Facts.

Even your most trusted employee could be tempted to commit fraud under the right circumstances. Make sure you know how to prevent that from happening.

We’ve written a lot about the fact that fraud happens in small businesses. Often times people think, “it could never happen to me”, but it does and recovering the money is no easy task.

According to the ACFE’s Report to the Nation, more than 3/4s of the frauds reported in their study were committed by employees who worked in one of the following six departments: accounting, operations, sales, executive/upper management, customer service, or purchasing. In 2012, employees were found to be the fraudsters 43% of the time, managers 34.3%, owners/executives 18.5%, and others 4.2%.

Ensuring that you have a system of checks and balances between departments and between position levels can help deter fraud. Just because someone is your most trusted employee doesn’t mean they couldn’t or wouldn’t commit fraud. According to the report, fraud by employees resulted in a median loss of $50,000; managers, $150,000; owners/executives, $373,000; and others, $86,000.

And remember, there could be more than one employee involved in the scheme. The study found that in 2012, 32.9% of US cases involved two or more perpetrators, which resulted in median losses of $175,000. Try to segregate duties as much as possible or rotate job duties to try to deter fraud schemes.

To learn more about ways to prevent fraud in your business contact Kit Powell, Certified Fraud Examiner.


Kit Powell
Certified Fraud Examiner

Do You Cover Part of Your Employees’ Healthcare Costs? You May be Eligible For…

The Small Business Health Care tax credit is available to employers who pay at least half of the cost of health care for their employees. (Photo Credit: office.microsoft.com)

The Small Business Health Care tax credit, which is designed to help small businesses and tax exempt organizations provide healthcare to their employees, is available to employers who pay at least half of the cost of health care for their employees. To qualify you must:

  • Have fewer than 25 full time employees (FTE). 2 part time employees = 1 full time employee.
  • You must cover at least 50% of the premium for single health care coverage for each of your employees.
  • Your employees must have an average wage of less than $50,000 per year. This number is the average! So, if you have 9 full time employees, and 2 part time employees that together make $250,000 you would divide 250,000 by 10, which equals $25,000. Your 10 FTEs (remember 2 part time employees = 1 full time employee) make an average of $25,000 a year. Even if Joe makes $40,000; Sue makes $35,000; Bill makes $30,000; etc.

If you have any questions, or would like additional information regarding this credit please contact your H&S tax professional.