Hobe & Lucas CPAs Inc

As your kids sharpen their pencils, it’s a great reminder to sharpen your education savings strategy too. Whether you’re saving for kindergarten, college or grad school — a solid plan can make all the difference. Let’s build a plan that supports your child’s future as well as your own.

Calling one of your business’s employees an independent contractor doesn’t necessarily make that person one. Worker status depends on the actual relationship. And getting it wrong can expose you to tax liabilities, penalties and other costs. Familiarize yourself with the three primary factors the IRS uses to classify workers for federal employment tax purposes: behavioral control, financial control and type of relationship. Also know that the Department of Labor has proposed new independent-contractor regulations that, if finalized, could differ from IRS definitions. We can review your worker classifications and help determine whether you should change them.

To attract and retain skilled workers, your small business needs to offer more than competitive pay. Your benefits package matters, too.

Tax-free fringe benefits may be especially valuable to employees. Examples include many types of insurance (health, disability, long-term care and life), assistance plans (dependent care, adoption and educational) and transportation benefits, subject to certain limits. The One Big Beautiful Bill Act also changed some fringe-benefit tax rules for 2026 and beyond.

Open enrollment is right around the corner for many businesses. As you review your 2027 benefits package, contact us for help evaluating your current offerings and fine-tuning them as needed.

A big shout-out to these great team members celebrating work anniversaries! 🎉 We’re grateful to have each of you as part of the Hobe & Lucas team. Happy anniversary!

Occupational fraud perpetrated by owners and senior executives can be particularly costly for businesses because these individuals usually have greater authority to override internal controls. To reduce fraud risk, familiarize yourself with the three sides of the “fraud triangle”: pressure, opportunity and rationalization. These factors generally enable fraud. Also establish strong controls and policies that prevent owners and executives from overriding them. And offer an anonymous tipline or web portal so that workers can report suspicions without fear of retribution. Contact us for help assessing controls and investigating incidents.

Bartering can be a viable way to conduct business, especially if you’re strapped for cash. But you can’t escape tax obligations.

The fair market value of goods or services you receive generally must be reported as taxable income. Business expenses related to the exchange may also be deductible. Special rules apply if you use a barter exchange, including when trade credits are taxable and whether Form 1099-B reporting applies.

Good records are essential, including documentation of the fair market value, invoices, barter agreements and statements from barter exchanges. Whether you already barter or are considering it, contact us to discuss the tax and reporting implications.

Need access to extra cash? If you have a 401k or another qualified retirement plan, you may be able to borrow from it, but there are important rules to know first.

Brian Davis wants you to be aware that a retirement plan loan can be helpful in the right situation, but making the wrong move could lead to unexpected taxes or penalties.

Check out the article below to learn what to watch for before borrowing from your retirement savings!
https://bit.ly/46kbshn

It's birthday week for Tetianna, and we’re sending all the good vibes your way! Have a wonderful celebration! 🎁

Businesses have long used bank lockbox services to accelerate collections and reduce work involved in processing checks. Now, technology enables lockbox users to automate many accounts receivable procedures. But other electronic payment methods, including ACH and credit cards, may provide less expensive, yet effective, solutions. To determine what makes sense for your organization, evaluate the volume of paper checks you receive. If it’s high, you might benefit from a lockbox service. Otherwise, consider accepting paper checks while steering customers to electronic methods. Talk to your bank about its services, and contact us for help calculating your current payment-processing costs.