fbpx

Call Us: 414-545-1890

15    16    17

Hammernik & Associates BBB Business Review

Uncategorized

The COVID Relief Bill Summarized

The “rescue package” has arrived. The COVID Relief bill is a whopping 5,593 pages long. I know you don’t want to sit and read through that novel, so I am here to summarize, in plain English, how this bill is going to effect your taxes.

Have you ever been on a roller coaster before? A lot of twist and turns, up and down, scary for some, exhilarating for others.

I fondly remember going to Six Flags Great America every summer with my family. The roller coaster named, American Eagle, was always the scariest roller coaster for me. Why? The roller coaster is made up of wood and has been there for decades. Who’s to say that the wood doesn’t begin to rot, or is attacked by termites…a lot for a young kid to worry about.

The COVID tax bills have been more stressful than any roller coaster ride of my life. The tax community has been left off on an island in regards to how we are supposed to approach the ramifications of COVID related tax bills. In particular, the Paycheck Protection Program taxability. As a small business consultant, I have felt very vulnerable at times when trying to advise our small business clients. The rules of the PPP have changed monthly, weekly…daily! The original intent of the PPP loan was to provide business owners monies to keep employees on payroll and pay their rents. The intent was for their not to be any tax ramifications involved. However, the IRS interpreted the loan differently. The IRS was prepared to not allow any expenses to be deducted by a business if those expenses were forgiven by the PPP loan. This essentially means that the business would have to report profits equivalent to the amount of their PPP loan that was forgiven. To put it simply, the PPP loan would become taxable. The roller coaster ride is now over. In the bill, we finally get the ruling that expenses forgiven WILL STILL BE TAX DEDUCTIBLE!!!! YAY!

This is great news for small business owners as it will relieve them of potentially large tax burdens when filing their tax return.

Let’s take a look at how some items in the bill may effect small business owners and individual taxpayers.

Individuals

Additional 2020 Recovery Rebates (Stimulus Check)
• $600 per eligible family member – Non-taxable. **This could be $2,000 if they choose to amend this portion of the bill based on the President’s recommendation.

  • Phase outs:
    • MFJ: starts at $150K AGI
    • HOH: starts at $112,500 AGI
    • S or MFS: starts at $75K AGI
  • “eligible individual” does not include nonresident
    aliens, anyone who qualifies as another’s
    dependent and estates or trusts
  • Must have a SSN to be eligible
  • Offsets limited to child support
  • Based off of 2019 tax return income
    • Advanced payments that exceed eligible credits are
    not required to be repaid
  • If stimulus payment is received in 2021, it is still going to be reported on your 2020 income tax return.
    • You will need to report the total amount of stimulus payments you received on your 2020 income tax return. Please provide that to your tax professional when filing your tax return.

PPP Loan Updates

  • PPP Forgiveness and EIDL Advance are tax exempt
  • PPP and EIDL Advance expenses are now tax deductible
  • EIDL Advance is no longer subtracted from the PPP Loan amount eligible for forgiveness
  • Additional eligible expenses for forgiveness:
    • Covered operations expenditures
    • Covered property damage costs
    • Covered supplier costs
    • Covered worker protection expenditures
  • Simplified application for forgiveness for loans up to $150,000

 

 

PPP 2nd Draw

To qualify, a business must have:

  • A 25% reduction in gross receipts (total sales) – In Quarter 1,Quarter 2,Quarter 3, Quarter 4 from 2020 compared to same quarter in 2019.
  • No more than 300 employees
  • Used or will use full amount of first loan AND approve for Forgiveness.

How much of a loan will you get if you qualify?

  • 2.5 times monthly payroll one yr prior to the loan or calendar yr. (Same as Round 1)
  • 3.5 times for restaurants, bars, hospitality industries. (NAICS Code 72)

What if I missed the boat on Round 1 of the PPP Loan?

They will be opening up applications for the original PPP Loan!

 

None of this is final law yet. We are currently in the veto process in which Congress will need to decide if they want to amend the bill or override the veto. Regardless, I am confident the items discussed in this article will stick. When you will receive your stimulus checks and how much will they be, who knows?…but they’re coming! Small business owners, the PPP loan will not effect your taxes…it’s a Christmas miracle.

We will provide updates as they come along. Stay tuned.

 

Happy Holidays!

Nick Hammernik

 

COVID-19 Tax Updates

Covid_Taxes_IRS.5e9760e6d05f0

 

With the 2019 Tax Filing Season just behind us, it is difficult to think of the next filing season, however, there are many issues that need to be addressed now, rather than wait.

At this most difficult time for our taxpayers, we want to assure you that our firm is here to assist you with your questions and concerns.

Economic Impact Payment – Stimulus

Many of you received an Economic Impact Payment, known as the Stimulus.  Whether you received a direct deposit, a check or a debit card, you also received a letter from the Internal Revenue Service.  If you received this letter, Notice 1444 in the mail we will need it to prepare your 2020 U. S. Federal Income Tax Return to determine if you qualify for additional payment.

 

If you did not get your payment, you can check the Get My Payment tool on the IRS website to double-check that it has been issued.

 

You can initiate a trace on your payment by calling the IRS at 800-919-9835,expect long wait times, or submitting Form 3911.  The United States Department of Treasury has requested for any deceased taxpayer who received a stimulus, their estate should return the payment to the Internal Revenue Service.

 

Unemployment Compensation

According to the IRS, unemployment benefits are taxable income. This means that any unemployment compensation that you receive from a state or the federal government must be included in your income and will be taxed at your ordinary income tax rate

To access 1099-G tax statements, claimants can go to https://dwd.wisconsin.gov/uiben/1099.htm and then follow a few easy steps to obtain an electronic copy of their 2020 benefit payment records.

In response to customer service trends toward the convenience of online self-service, claimants who have logged onto UI’s online benefits services system are being notified their 1099-G statements for 2020 will be accessible online and that they should not expect to be mailed paper copies. DWD securely stores 1099-G forms online for all claimants to access and print for their records. Claimants’ statements are available online for the past six years, which is helpful if claimants have to file amended tax returns. The UI Division is required to send 1099-G information to the Internal Revenue Service and the Wisconsin Department of Revenue

This tax form shows the amount of unemployment benefits you received and the amount of taxes withheld.   Unemployment benefits will also be taxable to your state if you live in a state with state income tax.  We will need the Form 1099-G to prepare your 2020 tax return.

You may wish to have withholding taken from your payment or may make Estimated Tax Payments to the IRS and the State. If you received Unemployment benefits, you may want to plan ahead for the potential tax impact so that there are not any surprises when you file your 2020 tax return.

 

Payroll Protection Plan Loans

Payroll Protection Plan (PPP) loans obtained to assist you keep your business open and your staff employed will undoubtedly have some impact on your 2020 tax filing.  The United States Congress is considering additional legislation to determine if debt forgiveness will not allow deductions used to eliminate the debt to be deductible or if there will be a blanket allowance of up to $150,000 of the PPP to be considered a grant and non-taxable. Currently, the part of the loan that is forgiven will not be allowed as deductible expenses, i.e. payroll, rent, utilities. This may increase your profits subject to tax. Tax Planning will be very important if this legislation does not change.

 

RMDs – Required Minimum Distributions

The CARES Act enabled any taxpayer with an RMD due in 2020 from a defined-contribution retirement plan, including a 401(k) or 403(b) plan, or an IRA, to skip those RMDs this year. This includes anyone who turned age 70 1/2 in 2019 and would have had to take the first RMD by April 1, 2020. This waiver does not apply to defined-benefit plans.

In addition to the rollover opportunity, an IRA owner or beneficiary who has already received a distribution from an IRA of an amount that would have been an RMD in 2020 can repay the distribution to the IRA by August 31, 2020. The notice provides that this repayment is not subject to the one rollover per 12-month period limitation and the restriction on rollovers for inherited IRAs.

 

These issues and many others have impacted our clients so far this year including changes in the tax code that may require amendment of prior tax returns.

 

Additionally the Supreme Court is scheduled to hear oral arguments concerning the constitutionality of the Patient Protection and Affordable Care Act, ACA, case California vs. Texas.  Should the Supreme Court over-turn the ACA it will overturn such tax issues as the Additional Medicare Tax and the Net Investment Income Tax.  It remains to be seen the full tax scope of such a decision.

 

Again, we understand the need to stay safe and well, it is our priority for our firm as well.

We are taking the precautions to keep you, our staff and us safe during these times.

 

We are ready to serve you.  Please call our office for an appointment, either face-to-face or by telephone.

 

Our best of wishes for your health and well-being.

 

Team Hammernik

Milwaukee Restart Grant Program

mke flag

The goal of the Milwaukee Restart Program (Restart) is to help local businesses that suffered as a result of the pandemic to reopen and adapt to the “new normal”

Eligibility

Restart grants will assist for-profit businesses located in the City of Milwaukee that have 20 or fewer full-time or full-time equivalent employees and greater than $0 but less than $2 million in 2019 revenue. Restart grants shall be limited to one per business owner. All applicants must be current on property taxes owed to the City of Milwaukee up through the 2018 tax bill.

For-profit Daycares will be eligible if they can demonstrate they have not continued to receive W-2 allocations during the pandemic or federal assistance.

The following business types are NOT eligible to apply:
gambling or gaming, national franchises, adult establishments, massage parlors, pawn shops, pay day loan or auto loan stores, home-based businesses, not-for-profits, tobacco stores, home-based businesses and liquor stores

Eligible Expenditures

Businesses may apply for the following expenses associated with re-starting business operations:

  • Personal Protective Equipment for employees (Limit of $100 per FTE; maximum of $2,000.00)
  • Modifications to business space and operations to adapt to COVID-19 pandemic (Limit of $3 per square foot of business storefront space; maximum of $7,500.00)
  • Restock of perishable inventory (Limited to $7,500.00; purchase of alcoholic beverages shall not exceed 25% or $1,875.00)

These calculations are provided to assist applicants to understand the maximum amount allowed. However, please note that final allocations will depend on available funding and demand for the program.

How to apply

As part of the application process, applicants are required to upload electronic versions of these documents:

  • Tax Return and K-1s for the business for the most recently completed year, or company-prepared Financial Statements for 2019
  • Documentation indicating the number of employees who worked during 2019 (Form 941, payroll report, etc.)
  • A current W9 form Rev. Version 2018
  • Photos of the interior and exterior of the business
  • Plan for spending the grant for the eligible expenses, including estimated amounts and descriptions of the expenditures

Applications must be made online between 9:00 AM CDT on May 28, 2020 and will be accepting applications until 5:00 PM CDT on June 12, 2020. Applicants will need to create an account to apply. This will allow users to save progress on their applications should they need additional time to fill out the application. Please make sure to keep a note of your user name and password. Click here for the Milwaukee Restart Application.

Grant Follow Up 

All businesses receiving Restart assistance will be required to complete a follow-up survey after the grant is awarded. Grant recipients must keep detailed records on reopening dates, receipts for expenditure of grant funds, and staff and payroll records.

7 Best Practices for QuickBooks Online

BW_Owner_Main1

Even if you’ve been using QuickBooks Online for a long time, it’s good to step back and evaluate your actions.

Milwaukee small businesses have many different ways in which they keep track of their accounting. It typically depends on how the business owner prefers to operate. QuickBooks Online is the present and the future of bookkeeping. It allows a business owner to track their financial statements in real time, while also giving their accountant access to reconcile everything.

“Best practices” aren’t enforceable rules. They’re simply guidelines businesses commonly follow in one area or another. If you’re in retail, for example, one best practice might be to always ask customers checking out if they found everything they were looking for. This serves two purposes: It conveys a feeling of concern for the customer’s shopping experience, and it may also lead to increased sales.

QuickBooks Online has many best practices, some of which may serve multiple purposes, including these:

    • They keep your company data safe and clean.
    • They provide insight on your financial status.
    • They save time.
    • They can lead you to better relationships with customers and vendors.

Are any or all the following common practices for your business?

Reconcile accounts regularly.

One of QuickBooks Online’s most useful features is its ability to connect to your financial institution’s websites and download cleared transactions. QuickBooks Online also offers tools to help you keep your accounts reconciled online, like you used to do every month when your paper statement came. Reconciling accounts can help you uncover errors. It gives you a truer picture of your cash flow, and it improves the accuracy and timeliness of some reports.

It’s not a particularly pleasant process, but you should be reconciling your accounts regularly in QuickBooks Online. We can help.

Clean up your lists.

Some lists in QuickBooks Online aren’t overly long. You don’t have to worry about, for example, Payment Methods, Terms, or Classes. Your lists of customers and vendors, products, and services, on the other hand, can grow unwieldy over the years. This means it can take more time than it should to scroll through lists when you’re using those entities in transactions. It also puts unnecessary stress on your company file. If you can’t delete any, at least make them inactive.

Never leave QuickBooks Online open when you leave your work area.

This goes for everyone, even people who work alone and don’t access their company files away from their work areas. The obvious reason is to keep someone else from getting in and authorizing payments, for example, or otherwise compromising your financial information. It also protects the integrity of your data file in case your internet connection suffers some kind of outage.

Keep track of 1099 vendors.

Whether your company uses 10 vendors or a hundred or more, you may have to supply at least some of them with an IRS Form 1099 at about the same time you’re preparing W-2s for employees. Your 1099-related tasks will be much easier if those individuals and/or companies are earmarked. If you think vendors might need 1099s when you create their records in QuickBooks Online, click in the box to the left of Track payments for 1099 in the lower right corner. Not sure? Ask us.

Classify everything with care.

Every time you have to create a record or transaction where categories are involved (i.e., Classes, Customers and Vendors, Territories), check and double-check that you’ve assigned them the correct classification. Errors here can result not only in problems with daily workflow, but your reports will not be accurate. A related best practice: Create a meaningful group of Classes, and use them faithfully. They’ll help you make better business decisions.

To create your list of Classes, click the gear icon in the upper right and select All Lists | Classes | New.

View reports on a regular basis.

There are some advanced financial reports in QuickBooks Online that we should be creating for you on a regular basis, either monthly or quarterly. These include Profit and Loss, Balance Sheet, and Statement of Cash Flows. The mechanics of creating them aren’t difficult, but analyzing them is. You should be running reports on your own at frequencies that you think would be helpful, like A/R Aging Detail, Unpaid Bills, and Sales by Class Detail.

If you’ve been using QuickBooks Online for a while, you could probably come up with your own list of best practices. If you’re new to the site, consider scheduling some time with us to go over more of them. Develop good habits from the start, and there won’t be nearly as much need for troubleshooting down the road.

Hammernik & Associates has a certified QuickBooks Pro Adviser on staff to help you keep your QuickBooks accurate and compliant. We also are able to get subscriptions at a discounted wholesale rate. Please contact our office if you need help cleaning up your QuickBooks or if you are interested in converting to QuickBooks. Milwaukee small business accounting and QuickBooks Online go hand in hand.

The Dodgers are the IRS and the Brewers are Hammernik & Associates.

This is a satirical article and is not meant to be serious. No IRS agents were hurt in the writing of this article.

Brewers fever is rampant in Milwaukee. If you have been in my office before, you know how big of a Brewers fan that I am. As I am writing this, I am getting excited to head to Miller Park tonight to watch Game 1 of the National League Championship Series. I like to take any opportunity that I can to try and clash the sports world into the tax world. So, here’s my hot take….The Dodgers are the IRS and the Brewers are Hammernik & Associates.

The Dodgers have one of the highest payrolls in baseball. They bring in money and toss it around like it’s nothing. Remind you of someone? Ah yes, the IRS. The big market Dodgers think they can push the small market around with their buying power and authority, just like the IRS does with Milwaukee taxpayers.

The Brewers’ postseason slogan is, “Defend MKE”. Hammernik & Associates defends the taxpayers of Milwaukee against the IRS anytime that they receive a letter or audited by the IRS. Hammernik & Associates does everything that we can to use the deductions and credits available by IRS law to reduce the money that taxpayers pay the IRS. The best way to combat the big dog is to be knowledgeable and creative with tax law. General Manager, David Stearns, is one of the smartest men in baseball, and used his resources to put together a competitive roster. In addition, Manager, Craig Counsell, uses his creativity to do some out of the box thinking i.e. moving 3rd basemen Travis Shaw to 2nd base, bullpen game in the playoffs.

Dodgers= IRS, Brewers Management=Hammernik & Associates. Baseball games cannot be won without the players, and tax cannot be reduced without strategies. Let’s match some of the Brewers’ roster with tax deductions and credits!

Brewers face Rockies in Game 2 of National League Division Series at Miller Park_1538784548156.jpg_13471890_ver1.0_640_360

 

Lorenzo Cain: Educator Expense Deduction – Lorenzo Cain is the smartest player on the field at all times. He not only is a leader, but he teaches the younger guys the right way to play the game.

 

Christian Yelich: Section 199-A Deduction – Chrisitan Yelich is new to the team just like the 199-A is new to the 2018 tax code. The 199-A deduction is a big-time deduction that is going to provide a huge tax break to small businesses. You see where I’m going here? Christian Yelich has been the main force behind the “small business” that is the Milwaukee Brewers.

 

Ryan Braun: Child Tax Credit – The child tax credit has been a consistent credit helping families out for years. As of 2018, the child tax credit went from $1,000 up to $2,000. Ryan Braun has been the one consistent on the Brewers over the past decade. This year he has brought his level of play close to the level we had grown accustomed to over the years.

 

Jesus Aguilar: American Opportunity Credit – The AOTC is one of the biggest credits available, as it offers up to a $2,500 credit. Jesus Aguilar (JESUS BOMBS) is the biggest human being on the roster and packs a big punch at the plate. The play on words here is very fitting as well. Jesus Aguilar was once a bench player, but took full advantage of his OPPORTUNITY to take over an everyday role.

 

Travis Shaw: Refundable Tax Credits – Refundable tax credits are the most versatile types of tax credits, because they can be used to both reduce tax and get a straight refund. Travis Shaw was forced to become versatile when he was moved to 2B, and he has done a great job with the transition.

 

Mike Moustakas: Rental Property Deductions – There is a chance Moose comes back to the Brew Crew next year, but for the most part, he is a rental player for the year. Rental properties can be a very good investment….just like Moustakas.

 

Orlando Arcia: Entertainment Expense Deduction – Watch Arcia snag balls at shortstop….Are you not entertained?!

Erik Kratz: The Senior Tax Credit – He may be only 38, but Kratz Daddy is a senior citizen based on MLB standards.

Manny Pina: Theft & Casualty Loss Deduction – Don’t even try swiping 2nd base on Manny…otherwise, you to will need to take a theft loss deduction.

Jonathan Schoop: Gambling Loss Deduction – This is the only negative one on the list. Almost every gamble David Stearns has taken in free agency and the trade market has paid off, but not this one (so far). With all the gambling winnings Stearns has made, he will need to take this loss to reduce the tax on those winnings.

Jeremy Jeffress: Wisconsin Subtractions From Income – It’s no secret that JJ thrives when he is pitching in Milwaukee, and has struggled during his tenure with other teams. Jeffress has his most success when living in Wisconsin.

 

There you have it. The Milwaukee Tax Deduction roster. Let me know if you have any good comparisons of your own.

Let’s Go Crew!

 

Nicholas Hammernik, EA, CTC

JJEFF

BREAKING: Budget Bill Signed Causes Change To 2017 Tax Law

Almost two weeks into the 2017 tax filing season, and we get this news bomb laid on us….This morning, in order to avoid another Government shutdown, President Trump signed a budget bill which retroactively extends a few tax laws that had expired for 2017. If you have already filed your tax return, you might need to file an amended tax return to claim some of these deductions.

 

The most notable changes include:

Exclusion for discharge of indebtedness on a principal residence
The provision extends the exclusion from gross income of a discharge of qualified principal residence indebtedness through 2017. The provision also modifies the exclusion to apply to qualified principal residence indebtedness that is discharged pursuant to a binding written agreement entered into in 2017.

Premiums for mortgage insurance (PMI) deductible as mortgage interest
The provision extends the treatment of qualified mortgage insurance premiums as interest for purposes of the mortgage interest deduction through 2017. This deduction phases out ratably for taxpayers with adjusted gross income of $100,000 to $110,000.

Above-the-line deduction for qualified tuition and related expenses
The provision extends the above-the-line deduction for qualified tuition and related expenses for higher education through 2017. The deduction is capped at $4,000 for an individual whose adjusted gross income (AGI) does not exceed $65,000 ($130,000 for joint filers) or $2,000 for an individual whose AGI does not exceed $80,000 ($160,000 for joint filers).

Three-year depreciation for race horses 2-years-old or younger
The provision extends the 3-year recovery period for race horses to property placed in service during 2017.

Also incorporated into the bill is a series of additional provisions that will go into effect for the 2018 tax year. The following are noteworthy:

Requirement for new Form 1040SR for seniors
The provision requires that the IRS publish a simplified income tax return form, designated a Form 1040SR, for use by persons who are age 65 or older by the close of the taxable year. The form is to be as similar as possible to the Form 1040EZ. The use of Form 1040SR is not to be restricted based on the amount of taxable income to be shown on the return, or the fact that the income to be reported for the taxable year includes social security benefits, distributions from qualified retirement plans, annuities or other such deferred payment arrangements, interest and dividends, or capital gains and losses taken into account in determining adjusted net capital gain. This provision is effective for taxable years beginning after the date of enactment.

Prohibition of modifying user fee requirements for installment agreements
The provision prohibits increases in the amount of user fees charged by the IRS for installment agreements. In addition, the IRS is required to waive the fees imposed for installment agreements for taxpayers whose income falls below 250 percent of the poverty line and have agreed to make the payments by electronic means through a debit account. Further, for those taxpayers whose income falls below 250 percent of the poverty line, are unbanked, and successfully complete an installment agreement, the fee would be reimbursed at the end of the installment agreement period.

Individuals held harmless on improper levy on retirement plans
The provision allows amounts, including interest, returned to an individual from the IRS pursuant to a levy to be contributed to the IRA, or employer-sponsored plan, without regard to normal contribution limits. In addition, the IRS is required to pay interest on an amount returned. The provision is effective for levied amounts, and interest thereon, returned to individuals in taxable years beginning after December 31, 2017.

Hammernik & Associates is here to keep up with the tax law changes to make sure you receive the proper deductions and credits. Please contact us if there was something extended that applies to you, and you need to amend a tax return.

Make a Difference Today…

The last few months have been a rough time for the state of humanity. I will not get into any political views or issues regarding events that have taken place. However, it does shine a light on how valuable your life is.

A main pillar of Hammernik & Associates is helping the community. Our charity of choice over the years has been the Muscular Dystrophy. We collect donations throughout the year by selling shamrocks and we also donate $1 for every tax return that we prepare. MDA has created a campaign that makes it so easy for you to help find a cure. All you have to do is upload a picture of yourself and $5 will be donated to the MDA. Here is the picture that I uploaded.

nickmda

Want to upload your own picture and donate $5? Click Here

This is an easy way to make a difference, it will only take a couple minuted of your day.

Take advantage of this simple way to make a difference in someone’s life. You have the ability to help send some kids to summer camp and put a smile on their faces. That is a great feeling!

Thanks in advance,

Nick Hammernik, EA

Don’t Tell Bobby Bonilla Pensions Are Dead

Today, July 1st, is unofficially named “Bobby Bonilla Day”.

bobb

Today is the day that Bobby Bonilla gets his annual check for $1,193,248.20 from the New York Mets baseball team, just as he will every single year through 2035.

To catch everyone up:

The deal was signed by the Florida Marlins in 1996, but Bonilla was traded to the LA Dodgers in the 1998 blockbuster that involved Gary Sheffield and Mike Piazza. Bonilla was later flipped to the Mets. He then only played 60 games in 1999, hitting a dismal .160 batting average, so the Mets decided to release him before the 2000 season instead of paying him $5.9 million that year.

In buying out Bonilla before 2000, the Mets triggered a deferral that paid Bonilla the above figure annually from 2010-2035.

Call it one of the more fun pensions you’ll ever see.

Pensions are a close to extinct financial animal, but if you can find an employer that offers one, you should jump on the opportunity.

01-870

What is a ‘Pension Plan’

A pension plan is a type of retirement plan, usually tax exempt, wherein an employer makes contributions toward a pool of funds set aside for an employee’s future benefit. The pool of funds is then invested on the employee’s behalf, allowing the employee to receive benefits upon retirement.

Why are Pensions dead?

Retirement has taken a back seat to corporate profitability for more than 40 years as the United States has embraced the reduction of pensions, and now the U.S. economy is paying the price with lowered productivity.

Without pensions, older workers are being forced to work longer hours and stay in the workforce longer, and that means they’re squeezing out some of the most productive workers of all, known as core workers (ages 25-54).

Employers have now opted for retirement plans such as 401K’s, 403(b)’s and Simple IRA. In these plans, employers still contribute to their employee’s retirement, it is just not as much as they would contribute to a pension.

Salary Deferral

“Bobby Bonilla Day” is a joke that is discussed every July 1st on sports talk shows and all over the Internet. It is looked at as a joke because the Mets are still paying a guy on their payroll over $1 million a year…and he hasn’t played a game in 16 years.

My question is, why don’t more athletes defer salary. There are a few other notable players such as Ken Griffey, Jr that are also being paid after their playing days. Griffey is actually even receiving 4% interest on his money…what a great retirement plan.

A Sports Illustrated story ran last year and stated this:

“Reports from a host of sources (athletes, players’ associations, agents and financial advisers) indicate that: By the time they have been retired for two years, 78 percent of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce.”

In an industry that sees former athletes trying to scrape together autograph signings and speaking engagements just to make a living after retirement, I ask this: Why not make salary deferral a priority for agents during negotiating contracts?

A glorified pension in an age where pensions are dead.

Figure out a way that you can support the lifestyle you want to live after you are done receiving a paycheck. This may no longer be through a pensions, but there are other ways to secure financial independence during retirement.

If you do not have a retirement game plan in place, or you think it can be improved, contact our office at 414-545-1890. Our Wealth Management division will review your current financial game plan and come up with a strategy to make your future retirement a success.

Have a safe and happy 4th of July weekend!

 

Nicholas Hammernik, EA

Nick is Talking Tax To Milwaukee. Combing the boring topic of tax with the latest news in pop culture and sports.

Nick is Talking Tax To Milwaukee. Combing the boring topic of tax with the latest news in pop culture and sports.

 

What To Do When You Receive An IRS Phone Call

One of the most common phone calls that we get at our office is clients calling to say that the IRS called them and told them that they need to pay them immediately. These are IRS scam phone calls that have been going on for almost two years. Want to know what to do if you receive one of these call or an email from the IRS?

Watch Nick Hammernik and Lori Beck tell you what to do:

What To Do If The IRS Calls You

If you have any questions or concerns about identity theft our financial scams, please call our office at 414-545-1890

 

How To Avoid IRS Interest

The IRS has decided they want more of your money! As of the second quarter of 2016, they have raised their interest rate from 3% to 4%.

Do you want to know how to avoid paying the IRS that interest? We help Milwaukee and Waukesha with tax issues.

Watch This Video

Blog Special: Schedule a tax planning session with your Hammernik & Associates adviser by 6/17/16 for only $59. Our normal tax planning rate is $175/hr, so don’t miss out!

If you need a Tax Cleanse with some IRS debt, schedule a complimentary consultation to see how we can help you out.

We will be trying to do video blogs every other week. Please let us know if there is a certain topic you would like to see discussed!

 

Until next time,

 

Nicholas Hammernik, EA