LBMC Memphis - formerly Frazee Ivy Davis PLC

07/25/2025

Frazee Ivy Davis is now LBMC Memphis! Read the full press release here: https://www.lbmc.com/blog/frazee-ivy-davis/

From now on, updates from our Memphis office will be shared on the LBMC company page: https://www.facebook.com/LBMCPC/

We’d love for you to stay connected and follow us there!

12/25/2024

12/03/2024

Hiring a nanny, housekeeper or gardener can significantly ease the burden of childcare and daily chores. However, as a household employer, it’s critical to understand your “nanny tax” obligations. Hiring a household worker who isn’t an independent contractor may make you liable for federal income tax, Social Security and Medicare (F**A) tax, federal unemployment tax and possibly state tax. In 2024, you must withhold and pay F**A taxes if your worker earns $2,700 or more (increasing to $2,800 in 2025). You pay household worker taxes by increasing your quarterly estimated tax payments or withholding from wages. Employment taxes are then reported on your tax return. Contact us with questions.

11/30/2024

Business owners may travel to visit customers, attend conferences, check on vendors and for other purposes. Managing tax-deductible travel costs can help ensure compliance and maximize tax savings. Assuming you meet the tax law requirements, there are a number of deductible business travel expenses. They include: air, train or bus fare to the destination; baggage fees; car rental expenses or the cost of using your vehicle; tolls; parking; transportation at the destination (such as taxis); lodging; tips and dry cleaning. Meal expenses are generally 50% deductible. The business travel deduction rules can be complicated. If you’re uncertain about the tax treatment of your expenses, contact us.

11/27/2024

Many employers still occasionally get caught off guard by the sheer scope of the Employee Retirement Income Security Act (ERISA). Take telehealth, for example. Even if it’s offered separately from an employer’s group health insurance plan, a telehealth benefit can still be subject to the law if considered all or part of an “ERISA welfare benefit plan.” Generally, an ERISA welfare benefit plan is a plan, fund or program established or maintained by an employer to provide employees with ERISA-listed benefits. There’s a safe harbor available, but you’ll need the assistance of a qualified attorney to determine eligibility. Contact us for help managing your benefits costs.

11/25/2024

Does your company operate in the business-to-business (B2B) marketplace? If so, your marketing initiatives must reach the companies you serve and speak to the right people at those organizations. To accomplish this, you’ve got to choose the right channels. For example, well-written and optimally distributed press releases remain a viable way to announce new products and services or other big news. You (or qualified employees) can also write bylined articles for industry publications. And then there’s digital marketing. Devise a strategy to regularly push out quality content on your optimal channels. These may include your website, blogs, one or more social media platforms, or podcasts.

11/21/2024

If you own a small business with no employees (other than your spouse) and want to set up a retirement plan, consider a solo 401(k) plan. This is also an option for self-employed individuals or business owners who wish to upgrade from a SIMPLE IRA or SEP plan. For 2024, you can make an elective deferral contribution of up to $23,000 of your net self-employment (SE) income ($30,500 if you’ll be 50 or older as of Dec. 31, 2024). On top of the elective amount, an extra contribution of up to 20% of your net SE income is allowed for solo 401(k)s. For 2024, the combined elective and extra contributions can’t exceed $69,000 ($76,500 for 50 or older) or 100% of net SE income. Questions? Contact us.

11/19/2024

Business driving may come to mind when you think about tax deductions for vehicle-related expenses. However, businesses aren’t the only taxpayers that can deduct driving expenses. Individuals may also be able to deduct them in certain circumstances. Unfortunately, under current law, you may be unable to deduct as much as you could years ago. For 2018 through 2025, miles may only be deductible in limited circumstances. The 2024, the per-mile rate varies depending on the purpose. For business, it’s 67 cents; for medical driving for eligible itemizing taxpayers, it’s 21 cents; for active-duty military moving, it’s 21 cents; and for charitable itemizers, it’s 14 cents. Questions? Contact us.

11/15/2024

Every employer’s culture will differ based on factors such as industry, purpose and size. However, certain key building blocks tend to pertain to all organizations. Here are five: 1) Carefully crafted mission and vision statements, as well as highlighted values that prompt desired behaviors. 2) Top-down commitment by executive leadership to be transparent, accessible and effective communicators. 3) Plentiful communication channels so staff can share concerns, thoughts and ideas. 4) Mutual trust between management and staff, which empowers employees. 5) Recognition and rewards. Ultimately, a strong organizational culture is imperative for driving productivity and financial performance.

11/13/2024

Companies that suffer unexpected downtime of key IT systems can incur substantial revenue losses. They also may face regulatory fines, blown IT budgets and elevated insurance premiums. The good news is your business can address the threat proactively. Begin with a formal risk assessment to identify the most likely causes of IT failures based on the distinctive features of your systems and users. From there, explore or enhance strategies such as tracking incidents carefully, investing wisely in cybersecurity, training and upskilling employees, establishing a disaster recovery plan, and reassessing and stress testing regularly. Contact us for help managing your technology costs.