If your business doesn’t already have a retirement plan, it might be a good time to take the plunge. Current retirement plan rules allow for significant tax-deductible contributions. For example, if you’re self-employed and set up a SEP-IRA, you can contribute up to 20% of your self-employment earnings, with a maximum contribution of $69,000 for 2024 (up from $66,000 for 2023). If you’re employed by your own corporation, up to 25% of your salary can be contributed to your account, with a maximum contribution of $69,000. If you’re in the 32% federal income tax bracket, making a maximum contribu ..read more

The Inflation Reduction Act (IRA) established and expanded numerous incentives to encourage taxpayers to increase their use of renewable energy and adoption of a range of energy efficient improvements. In particular, the law includes funding for nearly $9 billion in home energy rebates. While the rebates aren’t yet available, many states are expected to launch their programs in 2024. And the IRS recently released some critical guidance (Announcement 2024–19) on how it’ll treat the rebates for tax purposes. The rebate programs The home energy rebates are available for two types of imp ..read more

If your company has been in business for a while, you may not pay much attention to your payroll system so long as it’s running smoothly. But don’t get too complacent. Major payroll errors can pop up unexpectedly — creating huge disruptions costing time and money to fix, and, perhaps worst of all, compromising the trust of your employees. For these reasons, businesses are well-advised to conduct payroll audits at least once annually to guard against the many risks inherent to payroll management. Here are seven such risks to be aware of: 1. Inaccurate recordkeeping. If you don’t keep detailed ..read more

If you operate a business, or you’re starting a new one, you know records of income and expenses need to be kept. Specifically, you should carefully record expenses to claim all the tax deductions to which you’re entitled. And you want to make sure you can defend the amounts reported on your tax returns in case you’re ever audited by the IRS. Be aware that there’s no one way to keep business records. On its website, the IRS states: “You can choose any recordkeeping system suited to your business that clearly shows your income and expenses.” But there are strict rules when it comes to deducting ..read more

Business owners are commonly and rightfully urged to regularly generate financial statements in compliance with Generally Accepted Accounting Principles (GAAP). One reason why is external users of financial statements, such as lenders and investors, place greater trust in financial reporting done under the rigorous standards of GAAP. But that’s not the only reason. GAAP-compliant financial statements can reveal details of your company’s financial performance that you and your leadership team may otherwise not notice until a major problem has developed.   Earnings are only the beginning Le ..read more

President Biden has released his proposed budget for the 2025 fiscal year, including numerous tax provisions affecting both businesses and individual taxpayers. While most of these provisions have little chance of coming to fruition while the U.S. House of Representatives remains controlled by the Republican Party, they might gain new life depending on the outcome of the November elections. Here’s an overview of the major tax proposals included in the budget.   Business tax provisions The budget proposal includes many changes that could affect businesses’ tax outlook, several of which Bid ..read more

Accounting Today acknowledges Michigan public accounting firm for continued growth LANSING, Mich. – For the fourth consecutive year, Accounting Today has acknowledged Maner Costerisan as a leading accounting firm within the Great Lakes Region and as one of the ‘Top Firms to Watch’ nationally for the second year. Maner Costerisan was ranked No. 29 on Accounting Today’sFirms to Watch’ list highlights leading firms nationwide by revenue beyond the Top 100 Firms—a list often cemented annually by billion-dollar firms or those that have undergone significant mergers and acquisitions. ‘Top Firms to W ..read more

Managing accounts receivable can be challenging, especially in an uncertain economy. To keep your company financially fit, it’s a good idea to occasionally revisit your billing and collections processes to ensure they’re as efficient and effective as possible. Consider these helpful tips.   Resolve billing issues quickly  The quality of your products or services, and the efficiency of order fulfillment and distribution processes, can significantly impact collections. When an order arrives damaged, late or not at all, the customer has an excuse to question or not pay your invoice. Oth ..read more

By: Steven Guipe, CFP®, Wealth Advisor In the realm of retirement planning and taxation, it’s important for individuals to keep pace with changes that could influence their financial strategies. A key area of focus is the required minimum distributions (RMDs) from inherited Individual Retirement Accounts (IRAs), especially for non-spousal beneficiaries. The SECURE Act, a significant legislative development, and subsequent temporary relief measures have significantly altered the landscape of inherited IRAs, making it more intricate to navigate. Understanding the implications of these regulation ..read more

The Michigan Department of Education announced the opening of the Section 27K Student Loan Repayment Program.  According to the guidelines, educators who are currently enrolled in and making payments toward a federal loan forgiveness plan and who are working directly with students at least 32 hours per week are eligible. In accordance with Michigan Compiled Law (MCL) Section 388.1627K, eligible program participants shall receive up to $200 per month, or $400 per month if their employer is assigned to Band 6 in the opportunity index, as described in MCL Section 388.1631a.  “Band 6 in ..read more