Many banks conduct regular “stress” tests to predict the impact of adverse external events on their earnings, capital and loan portfolios. Banks use the results to shore up any revealed weaknesses. Investors should periodically perform similar stress tests on their investment portfolios. Stress testing is the ultimate “what if” analysis. It uses modeling techniques to [...]
During the pandemic, more than a few families have hired household workers while schools in many areas have gone virtual and some day care centers have had limited availability. If you’ve done so, be sure you know the nuances of the “nanny tax.” WITHHOLDING TAXES For federal tax purposes, a household worker is anyone who [...]
Many young adults are heading off or back to college in the fall. It’s particularly exciting this year because of high hopes that, thanks to mass vaccinations, students will be able to have something approaching a traditional college experience. If your child has been awarded a scholarship, that’s cause for celebration, too! But be aware [...]
Under the Families First Coronavirus Response Act (FFCRA), enacted in March of 2020, employees could (through December 31, 2020) take paid sick time and paid family leave to care for themselves or loved ones because of COVID-19. In turn, eligible employers could claim tax credits to offset costs of the leave. If your business has [...]
If you share a vacation home with family members, holding it in a limited liability company (LLC) is one option that offers several important benefits. Here are a few: Asset protection. By establishing an LLC to own the home and transferring interests to family members, you can protect the home against claims by a family [...]
The COVID-19 pandemic has significantly affected our lives in many ways that are still playing out. For example, it has served as a reminder of how difficult an unexpected medical crisis can be to manage financially. It’s also reinforced the importance of guarding against the risk of such crises before they arise. In this context, [...]