Month: February 2018

By Jane Marie Schaeffer, Esq.

As you approach retirement, you will be faced with choices about your IRA plans, and you will have many questions, such as how much will you be required to withdraw every year, and how will your distributions be taxed. This article will address some of those questions, and give you the information you need to make smart choices about your retirement plan.

1. When do I need to take withdrawals from my IRA?

You need to start taking distributions from your IRA the year that you turn age 70½. The distributions that you are required to take are called Required Minimum Distributions, or RMD. The distributions must be taken by April 1 of the year following the year in which you turn age 70½. So, for example, if you turn 70 on June 1, then you will turn 70½ on Dec. 1. You will need to take a RMD for 2018, but you have until April 1, 2019, to take the distribution. After the first year, distributions from your IRA must be taken by Dec. 31 each year.

By robert l. kind

As the new tax reform took shape in late 2017 and then was approved just a few days before Christmas, contractor services team were examining what elements could have the most impact on contractors and small business owners.

What is commonly being called the Tax Cut and Jobs Act (TCJA) of 2017 has caused a lot of discussion on whether companies will come out as winners or losers in 2018. While it has enhanced some tax breaks for contractors, it has also reduced or eliminated others.

Let’s start with the good news first. Here are some of the positive outcomes we think may be coming contractors’ way with the new law.

Expanded use of cash basis accounting method

Many contractors with average receipts over $10,000,000 have been required to use the percentage of completion method for tax purposes. The TCJA provides that, for tax years beginning after Dec. 31, 2017, taxpayers that have average annual gross receipts of $25 million or less during the preceding three years are not required to report on the percentage of completion method and can elect to be treated on the cash basis of accounting. The cash basis of accounting should present a more favorable deferral of income for a contractor.

An overlooked part of the hiring process is the reference checks.  In large companies, we sometimes leave this to HR.  In smaller companies (and the large ones too) we leave this to the end of the hiring process.  You know, when you say, I want to make an offer to this person, “Let’s check references.”

This shortchanges the reference process is several ways.  First, we have fallen ‘in love’ with this candidate. That makes us have ‘happy ears’.  We don’t hear warning signals.  We ask inane questions.  “would you hire this person again?  What were his/ her challenges in their position?  And others like that.

And, we are asking these questions of the people that the candidate gave us.  Face it, the candidate can find three people to say nice things about them.  Even then, they have been trained by lawyers never to answer real reference questions.

By James Marco

On Nov. 6, 2017, Albany County Executive Daniel P. McCoy signed an amendment to Albany County’s Human Rights Law that prohibits employers from inquiring about a job applicant’s wage history until after a job offer has been made.

The law went into effect 30 days later. Albany County now joins the cities of New York City and Philadelphia, and states of Massachusetts, Delaware, Oregon, and California who have similar laws.

While salary inquiries have often been used by employers to weed out candidates they consider too expensive, or as a checkpoint for someone that is simply looking to increase their salary, this new law is really an opportunity for employers to take control of this topic.

Without accurate market data, a sound compensation philosophy, and a strategy by which to execute a well-designed compensation system, employers may guess wrong and either miss out on a qualified candidate, or pay too much for a skill set they think they need.