Ask a CPA

Generally, worker's compensation protects you if you are injured while performing your job. Disability insurance covers you for any injury or illness, whether it happens at home or on the job. If you work for an employer who provides you with disability insurance, you should assess exactly how much you are protected for to determine if additional coverage is warranted.

Generally, there is no limit to the duration of Social Security disability benefits. If you qualify, you will keep collecting Social Security Disability benefits as long as your disability condition prevents you from working. The Social Security Administration will periodically review your case to see if there has been an improvement in your condition. If you are once again determined healthy enough to work, your benefits will stop. If you are still receiving benefits when you reach age 65, your disability benefit will be automatically converted to retirement benefits.

Split dollar insurance is not a type of insurance. It is an arrangement by which the premiums, cash values, and death benefits of a regular insurance policy are split by two or more participants. A split-dollar plan is a tool for an employer or owner of a small business to reward hard-working employees. By using a split-dollar plan, the owner can provide important key employees with life insurance protection and at the same time help them earn a fund to provide for additional retirement income.

The Health Insurance Portability and Accountability Act was created on July 1, 1997. It protects an insured person's insurability. Before this law, if an insured person lost insurance coverage they could be required to prove insurability before obtaining new coverage. Now, if a person has been insured for the past 12 months, a new insurance company can't refuse to cover that person and can't impose pre-existing conditions or a waiting period before providing coverage.

Uninsured motorist coverage pays you if an uninsured motorist hits your car and you are injured. You may also want to consider under-insured motorists coverage, which will protect you if the driver who crashes into your car has minimal coverage, which is not sufficient to cover extensive losses.

Transportation expenses for medical care and treatment are deductible medical expenses reportable as an itemized deduction on IRS Schedule A subject to the 10% / 7.5% limitation.
This includes trips to visit doctors, dentists, hospitals, and pharmacies. The expense must be primarily for, and essential to, medical care.
The standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 24 cents per mile driven for medical or moving purposes.

A business plan serves as your business' resume. It precisely defines your business and identifies your goals. Its basic components include a current balance sheet, income statement and cash flow analysis. A business plan is a crucial part of any loan package. It illustrates to suppliers, personnel and other parties about your goals and operations.

Some aspects to consider are licenses required, zoning laws and other regulations that vary from state to state and business to business. Depending on the type of business you are running, you may also need establishment licenses, liquor licenses, delivery and/or transport licenses. Your local SBA office or Chamber of Commerce will provide you with general information. The first decision is to decide about your form of organization. You can choose to be a sole proprietorship, corporation, s corporation or partnership. Speak to your local CPA for advice specific to your business and location.

There is a minimum wage set by federal law for most jobs. The actual wage paid is entirely between you and the prospective employee. Wage compensation is usually calculated using position importance and skill as the main criteria. You may consult with your local CPA or trade associations to learn more about the current practices in your business field.

You must withhold federal and state income taxes and contribute to unemployment and workers compensation funds. You must also match their social security contributions. You may want to also check into "key employees" life and disability insurance programs. Laws vary from state to state. Speak to your local CPA about the financial responsibilities in your jurisdiction and industry.