Court allows employer tax refunds on layoffs
Tuesday, October 30th, 2012
The Sixth District Court of Appeals, which includes Tennessee, has upheld lower court rulings that severance pay is not subject to FICA tax. Companies that had mass layoffs and offered severance pay packages should consider filing claims to refund those taxes before the statute of limitations runs and limits the opportunity. In March 2008, the […]
Read More »LLC vs. corporation
Wednesday, February 1st, 2012
We received this question from a budding entrepreneur about setting up as an LLC or a corporation: I am looking to set up a small business. I am debating on whether an LLC or S-Corp would be better. I am looking to decrease taxes and limit my liability. I, as the owner, will work in the […]
Read More »Employees paid as independent contractors
Friday, January 13th, 2012
A Knoxville company was paying its workers as independent contractors. It was forced to pay back wages to its workers by the Department of Labor, who determined that they were actually employees subject to minimum wage and overtime laws. The news hit the local paper, no doubt as a warning to other businesses who may […]
Read More »New 1099 trap
Tuesday, January 10th, 2012
Business tax returns for 2011 contain new questions about Form 1099 that may trap you if you overlook issuing 1099s this January. The questions appear on Form 1040 Schedules C (sole proprietorships), E (rental), and F (farms). They also appear on partnership (1065) and corporate (1120 and 1120S) returns. The questions: Did you make any […]
Read More »Do industry trends indicate recession?
Friday, December 9th, 2011
Industry trends indicate recession, according to Bloomberg economist Richard Yamarone in his Knoxville Chamber presentation. He showed us several key economic indicators he uses to forecast future economic trends to explain why he is pessimistic about the U.S. economy in 2012. While many economists see positive trends, he sees risks that he believes business owners […]
Read More »Is the next recession looming?
Monday, December 5th, 2011
Is another recession looming around the corner? Richard Yamarone studies economic indicators, and he thinks so. The Bloomberg economist spoke to Chamber of Commerce members in Knoxville recently to make his case for what he termed “the dark side”: that the economic recovery is stalling and another recession will begin next year. Mr. Yamarone, who […]
Read More »Worker classification crackdown coming
Wednesday, October 26th, 2011
The IRS recently announced a voluntary worker classification program that provides amnesty from back payroll taxes and penalties for companies who reclassify their independent contractors into employees. While there may be advantages on the federal tax side of this issue, you must consider other factors before deciding on a course of action. Worker classification has […]
Read More »Preserve estate tax portability
Monday, October 24th, 2011
To preserve estate tax portability, executors must file Form 706 Estate Tax Return for decedents dying in 2011 and later. The nine month filing deadline may be extended an additional six months. This election is not available for decedents dying before 2011. In the law reinstating the estate tax in 2010, Congress established an exclusion […]
Read More »Tort reform in effect in TN
Wednesday, October 5th, 2011
Tennessee’s tort reform law went into effect on October 1, 2011. It places caps on non-economic damages and punitive damages except in certain egregious cases. Governor Haslam and legislative sponsors tout the increased predictability that the new law will bring to businesses aiming to quantify risk. They say it brings Tennessee on par with other […]
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