Using ratio analysis to manage your not-for-profit organization has become more popular. There are a set of ratios that help managers and board members evaluate the liquidity, operations, and spending of the organization. It is important for those managers and board members to be able to understand the ratios, analyze the trends and compare to benchmarks. The following ratios are most commonly used: Liquidity Ratios Days cash on hand: Measures the number of days of expenses that can be covered from existing
An employer may pay an independent contractor and an employee for the same or similar work, but there are important differences between the two with potentially costly consequences. Read to find out more.
With the massive overhaul to the code in 2018, many filers are finding out that their tax situation has changed. The IRS has announced that it will waive the underpayment penalty for taxpayers who paid at least eighty-five percent of their total tax liability during calendar year 2018. This is a temporary change from the normal ninety percent of current year tax or one hundred percent of last year’s tax. The latter figure is increased to one hundred ten percent if your adjusted gross income exceeded $
When a participant in a 401(k) Plan terminates employment, there are typically a few options they have regarding what to do with their plan. Take a cash distribution – This is a taxable event (assuming all funds are pre-tax funds). The plan will automatically withhold 20% for federal taxes. It is important to note that there is also a 10% penalty for withdrawing 401(k) funds before age 59 1/2. Rollover the funds to an IRA or another Qualified Plan – This option is not a taxable transaction and t