What is

What Is a Qualified Joint Venture for Married Couples?

A qualified joint venture (QJV) is a business owned by a married couple. It allows them to report their business activity directly on their joint income tax return instead of filing a partnership return (Form 1065).

By Liz Smith, CPA, MSTFP September 5, 2024 | Taxes, What is

Without QJV rules, a business that is not formally organized with a state but is solely owned and operated by a married couple would default to being treated like a partnership for tax purposes—even when there is no official partnership agreement. Being treated as a partnership for tax purposes would subject the taxpayers to more…

Background Check Policy: What to Include + Free Template

By Genevieve Que September 3, 2024 | Free Resources, Human Resources, What is

An employment background check is a process for verifying a candidate’s background and qualifications and screening for red flags by checking criminal records, credit reports, driving history, and more, when applicable. Before conducting one, it is important to implement a background check policy to ensure fairness, transparency, and legal compliance. Your background check policy should…

What Are Compiled Financial Statements? Scope & Relevance

By Eric Gerard Ruiz, CPA September 2, 2024 | Accounting, What is

A compiled financial statement (FS) is a set of FS prepared by a certified public accountant (CPA) without giving any kind of assurance. Companies need to enter a compilation engagement with a CPA to have their FS compiled. Given that it’s a nonassurance engagement, the CPA will not issue any kind of opinion to the…

Payroll Compliance: Important Payroll Laws to Know

By Genevieve Que September 2, 2024 | Free Resources, Human Resources, What is

Payroll compliance refers to the legal obligation businesses have to adhere to local, state, and federal laws related to employee compensation. It’s not just about paying your employees on time, but also ensuring that you’re withholding the correct amounts for taxes, providing the right benefits, and complying with labor laws. When you have remote workers,…

What Is Fixed Asset Impairment in Accounting?

By Danielle Bauter August 29, 2024 | Accounting, What is

Fixed asset impairment is a reduction in the value of a long-term fixed asset (like property, plant, or equipment) when its book value exceeds its recoverable amount. This reflects a decrease in the asset’s future economic benefits. Impairment can happen due to various reasons, such as physical damage, economic downturns, obsolescence, and changes in business…

What Is FICA Tip Credit & How to Calculate

By Liz Smith, CPA, MSTFP August 29, 2024 | Taxes, What is

The FICA tip credit is an income tax credit claimed by employers in food and beverage industries to offset the cost of the employer FICA they pay on reported tips. It encourages employer reporting of tip income by providing an income tax credit based on the amount of payroll tax paid on employee tip income…