The Great Resignation and other factors have led to a shortage of workers and business leaders are having to find creative ways to recruit employees. It currently helps to be flexible when looking for workers to keep your business operating at the pace it should. For example, consider part time workers or freelancers for full-time positions till you can find the employee you are looking for.
The focus should be on your business production output and how you can get there with the workers you can get. We have a list below of where and how you can find workers to help you permanently or temporarily.
- Advertise on Job Board – Job seekers visit job boards like Indeed to seek employment. Posting your openings there can reach many seeking employment. You can also sponsor your openings to reach more people seeking jobs in your industry.
- Advertise on Social Media – Post your positions on social media and use their job boards as well. LinkedIn and Facebook have places where you can post open positions with the descriptions, salary and more. Your open positions can gain lots of exposure through social media and in turn lead you to the right candidates.
- Ask for Referrals – Ask for referrals through your local business chamber, local community events and even friends and family. You’ll be surprised at how they may be able to connect you to a suitable candidate or point you in the right direction.
- Attend Career Fairs – Attend physical and virtual career fairs to meet with job seekers. Many career fairs focus on industries, so search for those that are in yours to have access to those looking for jobs in your industry.
- Recruit Part timers – Consider part time employees for full time positions. This might warrant managing more employees on your part. However if the success of your business depends on headcount production, it’s worth considering
- Recruit Freelancers & Contractors – Hire contractors who can help you in any capacity till you find an employee. There are also many freelance websites where you can find professional freelancers who can assist you.
The pandemic led to a large number of professionals working from home instead of their office space. Many may be wondering how this will affect their taxes and if they’ll get a tax break.
The general thinking could be leaning towards you getting a break as an employee working from home, but that may not be the case. Tax breaks of the sort ended with the 2017 tax cuts with little exemptions. This means employees who don’t get reimbursed for their expenses by their employers can’t claim those expenses the way they used to. It’s more complex If you are self-employed and there are rules to be mindful of. You can still deduct a home office and some other expenses related to working from home, but want to ensure you are following the guidelines. It helps to speak with an accountant to get more clarity, but here is some helpful information:
What Can I Claim On My Taxes Working from Home?
You are not supposed to deduct your expenses when you work from home as an employee if your taxes, social security and medicare are deducted from your paycheck. Prior to the 2017 Tax Cuts and Jobs Act passed by the United States Congress, employees could deduct expenses like mileage, home office supplies, work outfits and more. The IRS now tends to qualify remote employee expenses of that manner as “miscellaneous itemized deductions” and since 2018 itemized deductions can only be taken if they exceed the standardized deductions.
Self employed professionals and business owners can still deduct for their office, meals, mileage supplies, marketing and more. Expenses you get in regards to working from home are tax deductible. It’s important to note that the expenses need to be exclusive to the business’s operations. A space used as an office by day and bedroom any other time would likely not be compliant. The space being used needs to be exclusively used for your business.
Tax Breaks Due to Covid-19?
There aren’t currently any special tax breaks for those working from home due to the pandemic. You can however count on a good accountant to ensure you get any tax breaks related to the pandemic if there are changes in the future.
In conclusion, the changes to the tax laws with regards to working from home may be confusing as time goes on. Having a professional assist you with your finances as an employee or business owner can make a difference. Accountant’s like us here at Motl Accounting are mostly aware of these changes and can help you get the most out of your taxes.
If you need to know more about what you can claim on your taxes, contact a professional at We’ve helped several individuals, families and businesses with getting the most they deserve out of their taxes.
Many individuals are familiar with filling out W-4 forms provided by their employers to file taxes. Business owners, self employed individuals and contractors however don’t fill out traditional W-4 forms. They are professionals who might receive income without taxes taken out right away and are therefore expected to make payments quarterly. According to the IRS, you are expected to make quarterly estimated tax payments if the following apply.
- You expect to owe at least $1,000 in tax for the current tax year after subtracting your withholding and refundable credits.
- You expect your withholding and refundable credits to be less than the smaller of:
- 90% of the tax to be shown on your current year’s tax return, or
- 100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)
Simply put, if you know you are going to owe a good amount of money, it’s beneficial to pay your estimated taxes. Here are a few reasons why.
No one likes penalties and paying your taxes each quarter prevents that. Per the IRS if you owe over $1,000 you could be penalized for underpayment of your taxes. Knowing the exact figure could be challenging and hiring an accountant could help in estimating how much your payments should be. Your accountant should have all the right numbers and processes in place to give a figure to pay that should prevent you from underpaying your taxes.
Paying your taxes quarterly let’s you avoid the potential surprise of a larger tax bill during tax season. Not paying could lead to having a large and unexpected bill at tax season. Paying your taxes quarterly can give you peace of mind knowing you aren’t likely to get an unexpected bill. This might be a task to deal with every quarter due to the nature of your business and how busy you are. If that’s the case, consider hiring an accountant who can assist you. For all you know, the cost of paying penalties could be more than what an accountant might charge to help you.
Paying your estimated taxes each quarter should give a good overview of your books and less stress in managing your accounting. This is where a bookkeeper comes in handy as they can provide insights on your accounting through the year. Tax season is less of a headache when you’ve been managing your books and making quarterly payments throughout the year.
In conclusion, the benefits to paying your estimated quarterly taxes can make life easier and provide you peace of mind. Quarterly taxes are typically due on April 15, June 15, September 15, and January 15, for the current calendar year. Most accountants and bookkeepers are aware of these dates and should work with you to get your payments in on time as needed.
Want to know more about how accountants and bookkeepers can help with your taxes and grow your business? Contact one of our professionals here at Motl Accounting. We assist businesses and individuals with their accounting needs and look forward to assisting you.
Many business owners are usually faced with deciding whether to incorporate as a Limited Liability Company (LLC) or S Corporation (S Corp) due to the nature of their business, ownership, employees etc. It’s advisable to contact an accountant to help you with making the right choice depending on your organization’s situation. We however have a few pointers here to help you understand how they both work to help you make an informed decision.
LLC and S Corporations both have limited liability protections for their owners. Owning a business as a sole proprietor gives an opportunity for business creditors to reach your personal assets that do not have anything to do with your business. As an LLC or S Corporation, your business is a separate entity, responsible for its debts, liabilities and obligations.
S Corps and LLC’s both offer their owners pass-through taxation with federal income taxes. This means the income and losses of the business are not taxed at the company level, but passed through to the owners to be reported on their individual tax returns. This avoids “double taxation” which is typical for C Corporations, since the corporations and shareholders are taxed at the company level.
There’s some additional flexibility when it comes to managing an LLC. S Corps and C Corps have corporation laws that have more guidelines regarding the management of the company compared to LLC’s. LLC’s have more flexibility to split and allocate financial interests among its members, S Corp’s profits however must usually be allocated based on ownership percentage. S Corporations can only have certain types of shareholders and are usually restricted to having less than 100 shareholders. Violating these rules can lead to many unwanted issues.
LLC’s can however achieve pass-through taxation status without those restrictions and offer more income tax choices in how your company is taxed. There’s an option to have your LLC taxed as a C Corp or S Corp, but we’d recommend discussing with your accountant.
S Corp Advantages
S Corporations offer the options to receive both salary and dividend, which could keep your taxes lower. LLC owners however pay self employment taxes, which can result in higher taxes. S Corps are also easy to convert into C Corps, with the process simply involving the filling of a form with the IRS. LLC’s on the other hand have a more complex process to convert into C Corp. S Corps typically also get outside funding more than LLC’s, as some investors and banks prefer to invest in corporations over LLC’s.
LLC’s and S Corporations both have their advantages, you may prefer to have more flexibility in running the company and allocating profits as you wish, which would lead to you to incorporate as a LLC. Contrarily, you might want earnings distributed proportionately to members, prefer to earn a salary instead of self-employment income and plan to seek funding later on. This would lead you to incorporate as an S Corporation.
The best way to determine what best suits you is to talk to an accountant like one of our professionals at Motl Accounting.
Managing Your Employees After the Pandemic
The COVID-19 crisis led to many changes in how employees work. Employees had to adjust to new routines and organizations had to make adjustments by providing access to work remotely. With normalcy setting in and the return of workers to physical offices, this could be a great time to revisit how to manage your team as they return to their work spaces. Meeting with your human resources and payroll providers to make adjustments that will keep your company and employees safe is advisable. We have a few tips here to consider when it comes to managing your human resources for positive results.
Revisit the Employee Handbook
The employee handbook is to have policies and procedures to help defend you from lawsuits. Ask an attorney to review your handbook to ensure it meets the times and update it as needed. Roll it out through a series of training sessions and have your employees (old and new hires) sign a statement acknowledging their understanding of the updated handbook.
Revisit the Office Setup
The pandemic led to a new awareness of being extra cautious and safe. Employees will want to feel safe at work and how your office is organized could make a difference. Consider having more space between staff desks and cubes to make everyone feel comfortable. You can also ask your employees for input on what their preferences are and accommodate them based on company policies and resources.
Everybody deserves fair and equal treatment at the workplace and supporting your employees in this manner is encouraged. After a tumultuous year, providing the environment and flexibility that supports all manner of employees can make a difference in your business outcomes and in the lives of your staff. Having guidelines and policies that ensure fairness to all your employees should provide them with the peace of mind to carry out their duties effectively. You can also refer to the CDC’s guidelines on general business questions for COVID-19
As a human resource and payroll company, ensuring our clients are safe with the right information and tools is a main objective. It is important that business owners have the right answers to questions to keep them compliant and that’s where we make a difference.
Contact one of our Payroll Rockstars at 847-426-2100 to learn how we assist many businesses in the Chicagoland area with their payroll and human resources needs. We’d be happy to assist you and your staff with managing your payroll and keeping you compliant.