Insights

New In-Plan Conversions for 401(k) Plans

Although traditional 401(k) plans have become widespread, many employers are adding Roth 401(k) s to their employee benefits. The relationship between these two types of plans is similar to the relationship between traditional and Roth IRAs: Traditional 401(k)s are...

Using the Work Opportunity Tax Credit

Among the business related provisions of the American Taxpayer Relief Act of 2013, the work opportunity tax credit (WOTC) was extended retroactively, for 2012, and also through 2013. Under the WOTC, employers can receive federal tax credits for hiring and retaining...

Calculating the Value of an Employer Provided Vehicle

Many employers provide a vehicle to employees for their use during working hours.  However, that employee may also use that vehicle for personal use before and after business hours.  An employee's use of an employer-provided vehicle for business purposes is a working...

Restoring a Higher Tax Bracket

For several years, through 2012, Americans paid income tax at six rates, ranging from 10% to 35%. Now, a higher rate has been added: 39.6%, which was the highest income tax rate as recently as 2000. In 2013, the 39.6% rate is imposed on income over ❖ $400,000 for...

Breaks for Business Owners in the Fiscal Cliff Legislation

Several provisions of the American Taxpayer Relief Act of 2012  apply to businesses. For the most part, these provisions extend previous law, often through 2013, while some are retroactive to 2012. First-year equipment deductions Under Section 179 of the tax code,...