Revised 2018 HSA contribution limit for individuals with family HDHP coverage

After the 2017 Publication 969 was released, the 2018 inflation-adjusted amounts for HSAs were published in Revenue Procedure 2018-18, and subsequently in Revenue Procedure 2018-27. If you viewed or downloaded the publication, please note the following for the first “Tip” on page 5. Revenue Procedure 2018-18 (dated March 5, 2018) lowered the HSA contribution limit for individuals with family HDHP coverage to $6,850. Revenue Procedure 2018-27 (dated April 26, 2018) raised that limit back to $6,900. The limit stated in the publication is correct. For 2018, if you have family HDHP coverage, you can contribute up to $6,900. The contribution limit for self-only HDHP coverage remains at $3,450.


Why significantly increasing minimum wage will hurt employees and businesses

Short answer: Micky D’s can only charge so much for a burger and people still be able to afford to buy it.

More detailed answer: Since small business margins are very tight, an increase in costs cannot be absorbed without prices being increased.

A jump to $15/hr from the federal minimum wage of $7.25 is an 107% labor cost increase! Even in some states that already have a higher minumim wage of $10/hr, that’s still a 50% increase.

But even a 50% increase in labor expense results in a higher overall cost to the business because there are costs that employers pay that are based on a percentage of labor expense. Considering just the basic employer-paid payroll tax and workers’ compensation insurance cost (that are based on labor expense), a 50% increase in labor costs creates an overall cost increase to the business of at least 60%.

Prices must increase proportinately to cover the increase cost. Products and services performed at minimum wage have the most price sensativity in the market. Price increases on such often results in fewer purchases. To compensate, businesses sometimes have to cut back on staffing, import cheaper product, gain efficencies through automation to reduce human labor, or go out of business.

If a higher standard of living is the goal, a significant wage increase for unskilled labor will have the opposite effect, since they will be out of a job, and so will the other employees and business owner if the business has to close down.

The issue is that mimium wage jobs are not designed to support a family. These jobs are appropriate for entry level employment. Lots of people can perform the lowest skill jobs, therefore their economic value is lowest to an organization, and consquently their earnings potential at that level.

As one gains more experience and invests in learning higher level skills, their economic value to an organization increases. Since fewer can perform higher skilled duties, a somewhat shorter supply exists, creating a somewhat higher demand, and this translates into a higher wage.

The market continues to adjust upward for higher compensation to those that provide greater economic benefit to the organization.

Security upgrade needed for uninterrupted QuickBooks (desktop) services

Action required: Security upgrade needed for uninterrupted QuickBooks services
Effective June 1, 2018, all services within QuickBooks Desktop will need to meet updated system requirements. These industry standard security requirements will provide greater security and stability with TLS 1.2, an internet security protocol. To learn more about TLS 1.2, click here.

How does this impact you?
If these requirements are not met, services impacted include, but are not limited to the following:

  • Connected services such as Payroll, Payments, Online Banking, etc.
  • QuickBooks Desktop activation on a new computer
  • Password reset tool
  • Services that require Intuit account credentials such as My apps, secure webmail, contributed reports, etc.
  • Intuit Data Protect (IDP)
  • Ordering checks and supplies

What do you need to do?
Please take the following steps by May 31, 2018 to ensure uninterrupted QuickBooks services:

  1. Make sure the QuickBooks Desktop version you are using is updated to the latest release.
  2. Run the TLS 1.2 Readiness tool from this QuickBooks article on the computer where QuickBooks is installed to confirm your system readiness for TLS 1.2.
  3. If the TLS 1.2 Readiness tool indicates failure, you should review the details here to take the necessary steps.

For additional information, please see this QuickBooks article.

Thank you for being a valued QuickBooks Desktop customer.


The QuickBooks Desktop Team

Small Business Marketing Articles

Small Business Marketing Articles

State-by-State Rules on Payroll Debit Cards, aka Paycards

There has been much talk and a lot of reports on the use of paycards. Every day, more workers insist on using paycards to receive their wages. I’m often asked if paycards are legal to use in various states. The simple answer is… read more

Gig Economy Business Model Dealt a Blow in California Ruling – Independent Contractor v. Employee

In a ruling with potentially sweeping consequences for the so-called gig economy, the California Supreme Court on Monday made it much more difficult for companies to classify workers as independent contractors rather than employees. Read more…

IRS Addresses ‘Tip Boxes’

At the end of each shift, then, the individuals decided how to allocate the tip box.  Here, the there was no evidence that the Taxpayer knew the actual amounts received, nor did it issue Forms W-2 or include those amounts on Forms 941.

During an audit, the IRS determined that the volunteers should be treated as employees for FICA tax purposes; consequently, the IRS issued a Letter 3523 to the taxpayer.

Add the weather to new Google Calendar (2018)

If you miss having the weather forecast showing on Google Calendar since the new redesign, you are not alone. There are many complaining on the Google Product Forums. Here’s a work around we found that a commenter posted to add a 10-day weather forecast to the web browser version of Google Calendar.

  1. Replace 57702 in the link with so your 5-digit zip code.
  2. On the left-hand side of the Google Calendar, click the + symbol to the right of Add a coworker’s calendar.
  3. Select From URL.
  4. Enter the link modified with your zip code. Click Add Calendar.
  5. The new calendar will appear in the Other calendars section. Make sure the checkbox next to it is checked so that it appears below the day of the week of the calendar.


Canceling a QuickBooks Online (QBO) Account Subscription

Cancelling your QuickBooks Online Subscription will also cancel your Payroll Subscription. Ensure that your e-payments and direct deposits are cleared before cancelling.

What we recommend you do before cancelling

Print all QuickBooks Online forms or reports that you might need.
Export your data to QuickBooks Desktop

To cancel your paid subscription

Important: Subscription cancellation is not available from your mobile device.

  1. Sign into your QBO company from a computer.
  2. Select the Gear icon.
  3. Select Account and Settings.
  4. Select the Billing & Subscription tab*.
  5. Choose Cancel to the right of Subscription status.
  6. Answer all of the exit survey questions and select Continue.  Your cancellation won’t be effective until you complete all of the instructions on the cancellation page. You will receive a confirmation that “Your QuickBooks Online Subscription has been canceled” and the Master Admin will receive a confirmation via email.

*Don’t see the  Billing & Subscription tab?

  • Make sure you are signed in as the Master Administrator or Company Administrator.
  • If you purchased your subscription from your accountant, lease contact your accountant to cancel.
  • If you are a non US company, please see Cancel your QuickBooks Online subscription (Non-US)

Cancel a suspended account

If an account is suspended more than 14 days, your data will become read only and when you sign in you’ll see a message indicating that your account is suspended.  Never fear, you can still cancel the account.

  1. Sign into your QBO company from a computer.
  2. When signing in, close the window to re-subscribe.
  3. Click the Gear icon.
  4. Select Account and Settings.
  5. Select the Billing & Subscription tab.
  6. Click Cancel to the right of Subscription status.
  7. Answer all of the exit survey questions and click Continue.  Your cancellation won’t be effective until you complete all of the instructions on the cancellation page. You will receive a confirmation that “Your QuickBooks Online Subscription has been canceled” and the Master Admin will receive a confirmation via email.


Exporting QuickBooks Online (QBO) data

You can use data export to move your QuickBooks Online (QBO) information to another version of QuickBooks. Check out this help document to learn how.