November 2021 E-Newsletter

NOVEMBER 2021 E-NEWSLETTER

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November Featured News

Understanding Form 1099 For Your Business

In January, your company may need to send 1099s to certain individuals and some businesses. And you might receive a few. Learn about the common Form 1099 that companies send and receive.

The Advance Child Tax Credit

When Congress enacted the American Rescue Plan in early 2021, it increased the child tax credit and required half of it to be paid in advance via monthly payments. While it’s intended to help families with everyday expenses, there are tax considerations to keep in mind.

Nuts and Bolts of Exchange-Traded Funds

An exchange-traded fund (ETF) can add diversity to your investment portfolio.

Social Media For Your Small Business

Keep these tips in mind when promoting your business online.

November 2021 Q & A

Q: What is Direct Primary Care (DPC) and how does it work?

A: DPC has been around since the mid-2000s, and it's a financial arrangement directly between a patient and healthcare provider. It cuts out the insurance providers. Instead of paying monthly insurance premiums, you pay your doctor a monthly fee that will generally cover typical primary care services like check-ups, preventative care and basic lab tests. But it won't cover costs for catastrophic events, so it also makes sense to have a high deductible health plan to prevent financial devastation due to a medical emergency or serious health problem. Consider owning a Health Savings Account (HSA), which has triple tax benefits.

Q: Do I need workers’ compensation insurance for my company?

A: Workers' comp insurance provides financial benefits to employees who have been injured on the job, and laws governing its requirement vary from state to state. Several states require employers to have it in place when the first employee is hired. Others have head-count thresholds. For example, Florida mandates workers' comp when you have four or more workers and aren't in the construction industry. And typically, business owners can elect to be exempt from coverage. If you use subcontractors, make sure they have their own coverage. If they get injured at your location you may be responsible for paying for their workers' comp benefits.

SHORT BITS

IRS LIVE

Have you had trouble reaching a live person when you call the IRS? That’s partly because of an historic number of callers during the 2021 filing season. The IRS received 85.1 million calls on its toll-free 1040 phone line. Compare this figure with 7.3 million and 12.1 million calls for the 2019 and 2020 filing seasons. In 2021, only about 3% of callers reached a live customer service representative.

HELP WANTED

Over half (54%) of small business owners say they have personally had to work more hours or take on more roles to make up for staffing shortages, according to a survey by the U.S. Chamber of Commerce. Nearly half of small businesses are struggling to find candidates with the right mix of skills and experience. And about three-quarters plan to do something different, like increase pay or offer flexible working arrangements, to attract new talent.

FINANCIAL ENFORCEMENT

According to The Financial Industry Regulatory Authority (FINRA), in 2020, it referred 970 fraud and insider trading cases to the SEC and other federal and state law enforcement agencies for prosecution. It completed over 5,600 exams and reviews of registered broker-dealers and assessed $57 million in fines while securing $25.2 million in restitution to harmed investors. It suspended 375 brokers for violations or misconduct and barred 246 from continuing practice.

COST OF GOODS SOLD

The costs of making US coins in 2020 decreased from 2019. The US Mint reported that it costs $0.0176 to produce and distribute a penny in 2020, down from $0.0199 in 2019. It costs $0.0742 to make a nickel and $0.0373 to make a dime. Quarters have the highest price tag at $0.0862 each. It cost $0.0901 to make a quarter in 2019.