Why Documenting HR is Essential for Small Business Success
Hey there! I’m Katy Murray, an entrepreneur and Human Resources professional, and I’m incredibly passionate about both. I absolutely love how much these two areas overlap, and I’m always finding ways to pull tricks from one and apply them to the other. Whether you’re a one-person operation or managing a small team, I can’t stress enough how crucial it is to document your HR processes for long-term success.
When most people think of Human Resources (HR), they picture big companies with hundreds of employees and complex departments. But honestly, HR is just as vital for us small business owners. Whether you have one employee or ten, documenting your HR processes is key to staying compliant, protecting your business, and creating a healthy work culture. I’m excited to share some practical tips and easy steps to help you start documenting like a pro, no matter the size of your business!
Disclaimer: The information provided in this blog post is for...
The Dirty Secrets of S-Corp Elections
The Dirty Secrets of the S-Corp Election
More & more, I see tax pro’s marketing the S-Corp election for massive tax savings but just like anything else, it’s important to do your homework before letting someone convince you that their way is the right way. It’s not a one-size fits all, and in this article I’m going to share some of the drawbacks (dirty secrets) about S-Corps plus what you can expect to pay for various services associated with electing S-Corp status.
First, though,
What’s an S-Corporation vs S-Corp Election?
An S-Corporation, or S-Corp, is a selected business structure, that one would choose at the time of forming their company. Choosing this structure allows pass-through taxation, meaning that profits and losses pass through to shareholders' personal tax returns, avoiding double taxation (i.e. the business being taxed AND you personally being taxed the income you pay yourself from the business).
On the other hand, the S-Corp...
Deciphering Employee vs. Independent Contractor
What an exciting time in your business, if you have gotten to the point where you need to add to your team!
Sometimes you can hire contractors (to outsource some work) but sometimes it makes better sense to hire an employee. We’ll go over the differences between ‘independent contractor’ and ‘employee’ from the IRS’s standpoint, so you have all the info you need to make the right choice for your business. Next week, we’ll talk about the money side of hiring one vs. the other.
The IRS has a 3-factor approach to determining who is an independent contractor vs. an employee. Those 3 factors are: Behavioral Control, Financial Control and Relationship of the Parties.
BEHAVIORAL CONTROL
A worker is considered an employee if the business has the right to direct and control the work performed, even if that right isn’t exercised.
These are examples of behavioral control that would indicate the worker should be an employee:
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The...