Drafting a business plan may sometimes seem like a daunting task. Yet business planning in Elkhorn, WI is an essential part of the success of your organization. There are a few key elements that any experienced business planner or business owner would consider essential to building your plan. These smart planning practices can help you develop a solid blueprint for the future of your company:
- Executive summary: An executive summary captures your entire business plan in one or two pages. When drafting a business plan, some people find it easier to write this section last, once you have the smaller details outlined in the rest of your plan.
- Business description: This section provides information on what kind of work your company will do, what its key differentiators are and who your target market is. This section includes information about what you personally offer to your company, such as your professional background and expertise.
- Products and services: In this section, you describe what your company has available for purchase. Is it a good? A service? Smart business planning means not only describing the characteristics of your offering, but also understanding research and development related to your company and its competitors.
- Marketing and sales: This critical section of your business plan details how you propose to spread the word about your business. This section defines your target market and identifies competition. Then, most importantly, it discusses your sales strategy and related budgets. Building your website, developing social media channels, acquiring a sales force and purchasing advertising space are just some of the methods you may use when marketing your business.
- Structure and management: Each business has a different management plan and company structure. In this section, you will want to detail any advisors or employees who will be working for your organization and which areas of the business are under their supervision. Be sure to include your own role and responsibilities as well.
- Future development: This section allows you to envision where you’d like to see your business in the long term. Unlike other parts of your business plan, this section does not have to be entirely rooted in data. This piece of your plan allows you to describe your goals and greater vision for the development of your company.
- Financial summary and projections: This final part of business planning includes a thorough record of the financial happenings of your business to date. Here you will want to explain your current financial status, existing loans, investments and significant assets belonging to your company. Once you describe your current financial situation, you can begin to project upcoming profits and costs based on the other sections of your plan.
Though there are many components of building the foundation for your company, business planning in Elkhorn, WI doesn’t have to be overwhelming. If you would like more information on how business planning services can help shape the success of your business, speak with a skilled professional at A Plus Accounting LLC Traveling Bean Counters.
So you’ve had an accident on the job and its left you laid up, unable to get back to work. Aside from the mess you’re likely dealing with when it comes to lawyers, HR representatives and doctors, you’re also probably swimming in a sea of paperwork regarding how you’ll be compensated until you can get back on the job.
One common mistake people tend to make when learning more about how their income is going to be supplemented is confusing what it means to have Workman’s Compensation versus Social Security Disability. While you might be getting compensation through both programs, they’re very different and are viewed very differently in the eyes of the government when it comes to how you’ll be taxed come tax season.
Workman’s comp vs. Social Security Disability
The first step to understanding your tax situation is understanding the difference between Workman’s comp and Social Security Disability. Here’s a quick refresher on the definition of “disability” that each assumes:
- Social Security Disability not only requires you to be disabled from performing your current job, but also from other types of work that might be comparable to the work you’re trained and experienced doing. This is viewed as more of a long-term disability and one that may be permanently debilitating.
- Workman’s compensation assumes that your injury or disability is one that’s not permanent and that you’ll be able to recover and assume your job duties once you’re better. This is commonly a temporary view on disability.
The key idea that makes these two programs different in the eyes of the government is the severity and longevity of your injury. To that end, you’re going to have to approach tax prep in Elkhorn, WI differently depending on which program you’re receiving supplemental income from.
Understanding taxation
The bottom line for determining if you’ll be taxed on your supplemental income or not is what you’re receiving. Basically, it breaks down like this:
- If you’re receiving worker’s compensation, the government doesn’t view this as taxable income, since you’re likely receiving only a portion of your normal working wage.
- If you’re receiving Social Security Disability, this is considered to be normal income. Prepare to pay Uncle Sam come tax season, as you would for normal income.
- If you’re receiving a mix of worker’s comp and Social Security Disability, you’ll be taxed according to what percentage of your take home is SSD.
Even with these incredibly simplified terms, it can be hard to figure out what you’re being taxed for when the time finally comes for tax prep in Elkhorn, WI. If you’ve had an accident at work and are now receiving supplemental income while you’re on the road to recovery, the best thing you can do is to hire a tax professional to help you make sense of it all. You might just see it as another expense, but in the long run, you’ll understand it’s more of an investment as you walk away from your ordeal with your taxation situation all wrapped up nicely.
They say that the only sure things in life are death and taxes—and for the most part, this is sadly true. Most people think that when they finally hang up their work boots for the last time and saddle up their rocking chair to celebrate retirement, they’ll no longer have to answer the call of the Tax Man… however this couldn’t be further from the truth. The IRS is still going to come calling after you retire: they’ll just be asking for a different amount!
All kidding aside, there are some very important things to understand about your taxes after you retire, but unfortunately there’s not a lot of good information out there to help people understand these changes. So, we’ve compiled a list of important concepts to understand when it comes to undertaking tax preparation in Elkhorn, WI after you’re done working.
Social security income
One of the biggest questions people often have about taxes after retirement is whether or not they have to pay income tax based on their social security checks. The answer is a bit complicated: a portion of your social security income is eligible to be taxed, but how much that is depends on how what your combined income is. Your combined income is measured as the “total of your adjusted gross income plus non-taxable interest, plus one half of your Social Security benefits.”
Total taxable retirement income
In this day and age, most people aren’t getting by on social security alone after they retire: they have a pension, 401k, IRA or some other source of income that’s helping to sustain them. With all of these things factored together, you’re looking at a total retirement income. And, the total amount of taxes you’re going to pay depends on where this income is coming from! If you have multiple sources of retirement income, such as a 401k and an IRA for example, you’re going to want to speak to an accountant when it comes time for tax preparation in Elkhorn, WI to get the total breakdown of what’s being taxed and what the rate of your taxation is for each “Revenue stream.”
IRA withdrawals
The time has finally come when you can tap that IRA you’ve been stowing money in for all these long years! But, how much is the government going to take when you finally decide to start dipping into your funds? Well, the good news is that it’s generally not much, however the government does consider this a source of ordinary income, so escaping taxes isn’t optional… unless of course you have a Roth IRA! When created and maintained appropriately, you’ll pay no withdrawal taxes on a Roth IRA!
Investment income
If you’re lucky enough to have a source of income from asset holdings in your retirement years, be prepared to pay some taxes on that income based on what type of holdings you have. Dividends, investment income, capital gains and more all come into play when you’re dealing with assets and depending on the value of each, you’ll be taxed differently. Again, it’s best to work with a professional during tax season if you’re looking at multiple sources of investment income.
Misc. income and taxes
There are even more retirement changes that you’ll need to get familiar with when it comes to maintaining your income taxes after retirement and it’s wise to seek tax help if you’re not quite sure of what you should be reporting. Everything from selling your home to getting income from annuities comes into play and it’s best to have someone on your side who knows where all the decimal points line up!
Tax season is, unfortunately, an ideal time for common IRS scams. As any expert in tax prep in Elkhorn, WI will tell you, falling victim to a tax-related IRS scam can cost you a great deal of money and even lead to more severe cases of identity theft. By educating yourself regarding some of the most common scams, you can easily avoid losing money or having to go through the terrible process of recovering from identity theft. Here is a short list of some of the most common scams to watch out for.
- Phone scams: Threatening calls have quickly become one of the most common IRS scams that typically occur around tax season. Usually the call uses either a blocked phone number or a number that appears legitimate, such as from the Washington, D.C. area. Sometimes the other line will be a pre-recorded message informing you that you need to call a number due to an error with your tax filing. Not all scam calls are pre-recorded, however, and in many cases the scammer on the other end will try to convince you that they are an IRS employee, usually providing a fake name and what they claim is the number of their IRS badge. Often times the caller will threaten that you need to pay more money immediately or face major problems.
- Credit card and debit card scams: Consumers should be aware that IRS officials use snail mail and never demand payment by credit card, debit card or other methods that require immediate payment. If you get a harassing call, do not offer any personal or financial information. Falling victim to this scam is particularly easy if you start the conversation by offering personal information, such as a Social Security Number, in order to verify your identity. Once again, do not offer personal information over the phone if another person has initiated a tax-related phone call with you.
- Email scams: Fake emails that look legitimate are another common scam that regularly tricks people during tax season. Most of the time, these emails are phishing for information, not money, although the scammers may ask you to send them prepaid debit cards. Either way, the emails often appear completely legitimate, and the email address may even appear to contain IRS-related information. Although there are numerous scams out there that try to solicit credit card information, during tax season the tactics are more likely to be something seeking personal information. Once again, the tactic is to have you confirm your identity and tax filing by offering personal information including dates of birth, home addresses, bank routing information or Social Security Number. Take it from an expert in tax prep in Elkhorn, WI: the IRS will not be checking in with you via email to confirm your identity.
Although scams like these are the most common, some others do exist. There are fraudulent tax prep services that exist both in person and online. Remember to verify, such as with the Better Business Bureau, the validity of any service that helps with your taxes before handing over important personal information. Allow your tax season to go smoothly by avoiding common IRS scams.
