August 2022 E-Newsletter

AUGUST 2022 E-NEWSLETTER

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August Featured News

Higher Education Costs

Below are the average in-state tuition and fees full-time undergraduate students paid during the 2021-2022 school year.

Are You Saving Enough For Retirement?

According to a Survey of Consumer Finances, here are the average retirement account balances by age.

Consider State Taxes Before You Move

Relocating to a different state means state tax changes. Simply because a state has low (or no) income tax doesn’t necessarily mean it’s a low tax state. A state needs funds to survive, and while they may not charge income tax, there are other ways to collect taxes.

Interest Rates and Bond

A fundamental principle of bond investing is that market interest rates and bond prices generally move in opposite directions. When interest rates rise, the cost of bonds typically decreases, and the bond's yield (how much you'll earn) usually increases. This is true for government and corporate bonds.

August 2022 Q & A

Q: How do I change my company's fiscal year-end?

A: Transferring your business to a fiscal year from a calendar year is a significant step and should be done only if there is a strong business purpose. It will complicate tax compliance because some reporting deadlines will shift while others, like Forms 1099 and W-2, will remain on a calendar year.

Changing your year-end date generally requires approval from the IRS by submitting Form 1128, so you'll want to get your tax professional involved. However, if you're looking to change your fiscal year-end strictly for a financial presentation viewpoint, remember you can always present your company financials using any period you like without changing your tax filing requirements.

SHORT BITS

How To Change A Business Name

Has your business outgrown its name? Or perhaps you've purchased a company and want to rebrand its product line. Fortunately, changing your company's name is straightforward.

After you settle on a new name, complete a business name search with the Secretary of State where you do business. You’ll want to make sure this name is available and that it follows the state’s naming rules. You may also want to verify that the domain name is available, even if you don’t plan to have a website immediately. Buying the domain name will ensure another business can’t use it.

NOTIFY

When you confirm the company name is available in your state, you need to file an amendment certificate with your Secretary of State to notify the state of the name change.

You’ll also need to notify the IRS for federal tax purposes, which might mean applying for a new federal employer identification number. And don’t forget to update any business licenses or permits, bank accounts, and company agreements or bylaws.

Retirement Plan Audits

If your company’s retirement plan has 100 or more eligible participants at the beginning of the plan year, you’ll generally need to have it audited by a qualified independent accountant each year.

A planned audit typically includes reviewing plan documents to verify they comply with IRS and Department of Labor rules, examining employee contributions to ensure money was remitted timely, confirming distributions and rollovers were paid out correctly, sampling specific participant’s transactions for plan compliance, and determining the accuracy of the information reported.

Keeping track of plan-related documents throughout the year—and for smaller companies experiencing steady growth, monitoring the number of active participants— are the simplest ways to prepare for an audit.