Employers: Social Security wage base is increasing in 2022
The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $147,000 for 2022 (up from $142,800 for 2021). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Background information The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees and self-employed […]
What employers need to know about ETS COVID testing and vaccination
OSHA has released its Emergency Temporary Standard (ETS) on COVID-19 vaccination and testing. While a federal court has issued a stay of these requirements in the midst of legal challenges, below is what is included in the regulations. All businesses with more than 100 employees – firm or company-wide – will be affected. Under the ETS, […]
Biden, House release revised Build Back Better framework, bill
President Biden released Thursday a framework to help guide the drafting of legislative language for the Build Back Better bill. What once contained $3.5 trillion in spending, the BBB now has been negotiated down to about $1.850 trillion dollars. The tax provisions included in the BBB framework include: Corporate minimum tax and stock buyback surcharge. […]
Prime costs key to measure health of your business
Do you know the minimum amount of sales needed to make a profit? Calculating your prime costs is a good benchmark. Prime costs for restaurant owners are the total cost of goods sold plus total labor costs. Cost of goods sold (or COGS) is the combined costs of food and beverage ingredients sold at your […]
How small pay increases can have a big impact
The pressures of labor shortages are hitting restaurant owners especially hard, and many are looking to increase wages to recruit and retain workers. Even little adjustments, though, can result in significant impacts to the bottom line. Below is a good illustration of how increasing the pay of just five employees to $12 an hour can […]
Safe harbor plans are popular in a tight labor market
With the labor market becoming more competitive, employers are looking for new ways to attract and retain good employees. A safe harbor match designed 401(k) plan provides a generous and popular benefit. By opening a safe harbor plan you are investing in your employees’ retirement and incentivizing them to save at the same time. Why […]
Pay will attract, culture will retain
The current labor shortage is proving to be one of the most severe and costly impacts of the pandemic. Economists have indicated that a labor shortage was inevitable due to the aging and retirement of the Baby Boomers, but the pandemic has accelerated it. As we navigate these unprecedented times, employers are looking for creative […]
Think outside the box to attract and retain employees
It is becoming harder and harder to attract and retain good employees. Turnover in restaurants is high but sometimes thinking outside the box and offering more benefits could help with retaining good employees. Many employers already offer the “basic benefits” to their full-time employees, which includes medical, dental, and vision insurance; 401(k) retirement plan; and […]
Do your homework when selecting where to live and work
Reducing taxes is the question on everyone’s mind. While much attention is placed at the federal level due to pending infrastructure legislation, don’t forget that state income tax can play a big role in your overall tax burden. As working remotely has increased, people have more options where they live. Thus, there has been an […]
Why 529 plans can help prepare for the near and distant future
The cost of education continues to climb to the point where many parents and students simply acknowledge they will need to take out significant loans in pursuit of a diploma or degree. By planning early, parents and grandparents can help eliminate, or significantly decrease, the need to be saddled with debt before they even get […]