Critical Q1 Activities

Tax Savings

While the winter doldrums persist – there are many things about which to look forward. Today marks the last month in Q1 2023. Unless extended – every pass-through entity you own is required to file its tax return. Certain tax-savings activities had to be completed before for the end of Q4 2022; however, there are still tax-savings strategies available. Many of you already have Defined Contribution Plans for your business (e.g. 401k, etc.) and realize the great tax-savings, employee retention and other benefits of those plans; however, before you file your business returns – and certainly before you write a check to the United States Treasury, we should discuss a Defined Benefit Plan for your business (e.g. Pension Plan, etc.); this strategy can potentially mitigate (and even eliminate) substantial tax that you may owe. The deadline for preparing and implementing Defined Benefit Plans is the date your return is due.

Employment Law

As J. Willard Marriott said “If you take care of your employees they will take care of your customers and your business will take care of itself.” Employees are usually a business’s most important and valuable asset; however, they can also be the greatest liability and headache for a business owner. Because of that, we recommend ensuring that:

• Your Employee Handbook is up to date (i.e. revised within the last 2-3 years);

• Every employee has signed the Employee Handbook Acknowledgement Form each year;

• Your unstated but expected Policies and Procedures are documented and made ancillary to your Employee Handbook;

• Your employee files are complete and organized consistent with current law and best practices;

• As applicable, your key employees have additional legal agreements in place to protect your intellectual property and business.

Tax-Savings and Employment Law fall within Private Wealth Law Group’s regular Compliance Program that we perform every quarter, every year, for every client. We look forward to assisting you and your business this year and would enjoy discussing any questions or concerns you may have.