Did you know the national average wage index went up? You might have missed the news, but it's likely you will notice one impact: higher self-employment taxes.
How are the two related? The index is used to calculate the social security wage base, which is the amount of income subject to the 12.4% social security portion of the self-employment tax. When the index goes up, the wage base does too, and more of your income is taxed.
The New Overtime Rules issued by the Department of Labor regarding the overtime eligibility is still set to go into effect December 1, 2016.
The House introduced and passed legislation, H.R. 6094, which would delay the overtime rules for a six-month period, but it has yet to be heard by the Senate and likely will be delayed until after the election. Therefore, we recommend proceeding with your plan to address this change within your company.
As a business owner, you should be aware that you can save family income and payroll taxes by putting junior family members on the payroll. You may be able to turn high-taxed income into tax-free or low-taxed income, achieve social security tax savings (depending on how your business is organized), and even make retirement plan contributions for your child.
If you're an employer, you'll need to withhold social security tax from a higher amount of your employees' wages in 2017. The wage base for withholding social security tax from wages has increased to $127,200, up from $118,500 in 2016.
Currently my role at Weber O’Brien is a Tax In-Charge staff. My responsibilities include:
A recent survey of builders, developers, remodelers, and subcontractors by TD Bank found that U.S. builders value their partnerships with loan officers and rely on them to help close sales.
NAHB economist Robert Dietz looks at the economic growth potential of residential construction.
The economy got off to a soft start in 2016. Growth rates for the first quarter (0.8%) and the second quarter (1.2%) were disappointing, and NAHB has marked down its forecast for overall growth in 2016 to 1.6%. This would make 2016 the weakest year since 2011. Economic activity associated with investment has been weak for the past three quarters, due to energy sector declines and reduced business investment.
Breakeven analysis is an important and useful tool in business. Whether you're starting a new business, expanding current operations, contemplating an acquisition, downsizing, or approaching banks and other potential lenders, you'll want to know your breakeven.
Construction companies and medical patients have something in common. A doctor entered an exam room to discuss with a patient the results of tests on his kidneys. “Your kidneys are fine,” he said. “However, if we run enough tests we’re going to find something, somewhere, and we may have found a different problem.” That test turned out negative as well, but the process is descriptive of what construction companies deal with when engaged with the Occupational Safety and Health Administration (OSHA).
OSHA has one job, per its website description, which is to “assure safe and healthful working conditions for working men and women by setting and enforcing standards and by providing training, outreach, education and assistance.”
Largest study of its kind reports that the young are approaching home ownership with both savviness and caution.