Independent Contractor vs. Employee Status: The DOL Issues New Final Rule

The U.S. Department of Labor implemented a new test to determine whether a worker should be classified as an independent contractor or an employee for purposes of the federal Fair Labor Standards Act (FLSA). The new rule, which took effect on March 11, 2024, is more employee-friendly than the previous test developed under the Trump administration. This article reviews the key aspects of the new rule and what it means for employers and workers.

Retirement Saving Options for Your Small Business: Keep It Simple

Business owners who wish to set up a retirement plan for themselves and their employees may be worried about the financial commitment and administrative burdens involved. This article looks first at a “simplified employee pension” (SEP). Small business owners who establish and contribute to a SEP by the due date of their 2023 tax returns can still see tax savings for 2023. A sidebar describes a second retirement saving option, which is a “savings incentive match plan for employees” or SIMPLE.

Work Opportunity Tax Credit Provides Help to Employers

Businesses seeking to hire should be aware of a valuable tax credit for hiring individuals from one or more targeted groups. Employers can qualify for the Work Opportunity Tax Credit (WOTC), which is worth as much as $2,400 for most eligible employees ($4,800, $5,600 and $9,600 for certain veterans and $9,000 for long-term family assistance recipients). The credit is generally limited to eligible employees who begin work for the employer before January 1, 2026.

Have You Recently Reviewed Your Life Insurance Needs?

Life insurance used to play a much bigger role in estate planning than it does now. That’s because it was needed to pay estate tax, which affected more people than it does now. With the federal gift and estate tax exemption at $13.61 million for 2024, far fewer families must pay estate tax. Here’s how to evaluate your life insurance needs in light of circumstances today.

The Child Tax Credit Is Still Available

Parents know that raising children is expensive. Although some of the enhancements of the Child Tax Credit (CTC) have expired, the credit is still available for eligible parents of children under age 17. Plus, there’s still time for taxpayers to claim the CTC on their 2023 tax returns, if they haven’t filed yet. This short article reviews the current rules.

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About Dannible & McKee, LLP

Dannible & McKee, LLP has been providing audit, tax, accounting and financial management consulting services to clients nationwide since 1978. Throughout this forty-five years history, we have been wholly dedicated to the success of our clients. Every aspect of our business has been guided by our values and our commitment to putting each client's interests first. In a complex profession, we have found our greatest rewards in the simplicity of helping good people prosper. Delivering confidence in every financial decision is our goal for our clients, and it's also the most significant way we can contribute to their long-term success.

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