Month: December 2013

Worker’s Compensation Insurance – A Basic Understanding

Worker's Compensation Insurance

Worker’s Compensation Insurance a.k.a Workman’s Compensation Insurance provides for the medical cost of the sustained injury and for lost wages during recovery.  In addition, if the worker sustains permanent disability, the insurance provides compensation until the Social Security Administration’s Disability Program starts.

Accelerated Depreciation – An Explanation

Accelerated Depreciation

When it comes to depreciation, no two businesses are alike. Unlike traditional straight line depreciation where the asset value is costed out to depreciation expense in equal increments over a given life expectancy, accelerated depreciation expenses the cost at higher values during the earlier accounting periods and at a lower amount towards the last half of the asset’s life expectancy.

Exempt and Non-Exempt Employees

Exempt Employees

The Federal Labor Standards Act of 1938 sets the standards as it relates to Exempt and Non-Exempt employees and their associated compensation and work standards.  The Labor Standards Act is located in Chapter 20 Section 201 of the Federal Code.  This Act is applicable to those small business operations with more than $500,000 of annual revenues and who participate in interstate commerce.

Realized and Unrealized Gains or Losses

Realized and Unrealized Gains

When a product or investment is sold, the seller must realize a gain or loss from the transaction.  The actual sale or transaction will trigger the gain or loss realized.  In effect, the receipt of cash sets the threshold for a ‘REALIZED’ amount.  Unrealized gains or losses are potential i.e. on paper transactions.

Estate Tax – The Basics

Estate Tax

Even after death, your heirs may still have to file a separate tax return for you with the Internal Revenue Service.  If your accumulated wealth is greater than $5.25 Million, then your executor must file Form 706 – The Estate Tax Return.

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