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Summer hours are in effect: Our offices close at NOON on Fridays from May 17th to July 12th
Our offices will be closed the week of Thanksgiving, from November 25th through November 29th, to support our team’s well-being and allow time with family.
We will resume our fall/winter business hours on Monday, December 2nd. Thank you for your understanding, and we wish you a wonderful holiday season.
Summer hours are in effect: Our offices close at NOON on Fridays from May 17th to July 12th
Our offices will be closed the week of Thanksgiving, from November 25th through November 29th, to support our team’s well-being and allow time with family.
We will resume our fall/winter business hours on Monday, December 2nd. Thank you for your understanding, and we wish you a wonderful holiday season.
If your small business doesn’t offer its employees a retirement plan, you may want to consider a SIMPLE IRA. Offering a retirement plan can provide your business with valuable tax deductions and help attract and retain employees. For a variety of reasons, a SIMPLE IRA can be a particularly appealing option for small businesses. The deadline for setting one up for this year is October 1, 2019.
The basics
Unlike cash or credit cards, small businesses generally don’t accept bitcoin payments for routine transactions. However, a growing number of larger retailers and online businesses now accept payments. Businesses can also pay employees or independent contractors with virtual currency. The trend is expected to continue, so more small businesses may soon get on board.
As the employer, you can choose from two contribution options:
1. Make a “nonelective” contribution equal to 2% of compensation for all
eligible employees. You must make the contribution regardless of whether the
employee contributes. This applies to compensation up to the annual limit of
$275,000 for 2018 (annually adjusted for inflation).
2. Match employee contributions up to 3% of compensation. Here, you contribute
only if the employee contributes. This isn’t subject to the annual compensation
limit.
Employees are immediately 100% vested in all SIMPLE IRA contributions.
Employee contribution limits
Any employee who has compensation
of at least $5,000 in any prior two years and is reasonably expected to earn
$5,000 in the current year, can elect to have a percentage of compensation put
into a SIMPLE IRA.
SIMPLE IRAs offer greater income deferral
opportunities than ordinary IRAs, but lower limits than 401(k)s. An employee
may contribute up to $12,500 to a SIMPLE IRA in 2018. Employees age 50 or older
can also make a catch-up contribution of up to $3,000. This compares to $5,500
and $1,000, respectively, for ordinary IRAs, and to $18,500 and $6,000 for
401(k)s.
A SIMPLE IRA might be a good choice for your small business, but it isn’t the
only option. Contact your trusted advisor to learn more about a SIMPLE IRA or
to hear about other retirement plan alternatives for your business.
Contact your trusted advisor with any questions.
Ten Warnings Signs:
If you have compliance questions on your employee benefit plan, please contact the SKR+CO audit team.