In 2016, Arizona voters passed Proposition 206, a law that mandates a steady increase in Arizona's minimum wage through 2020, after which time increases will be pegged to the rate of inflation. Starting on January 1, 2018, Arizonans must be paid $10.50 an hour, up from $10 in 2017. The additional income is designed to help low-income families make ends meet. So far, beneficiaries of the higher wage seem to be spending their additional income, as Arizona's economy remains strong while unemployment went down in 2017 from five to four-and-a-half percent. Still, it remains to be seen how the state will fare as the minimum hourly rate continues its upward climb to $11 in 2019 and $12 in 2020. The warnings by Governor Ducey and Arizona Chamber of Commerce that the higher wage may cost jobs may still prove true.
ASC 606 is an accounting regulation that concerns revenue recognition. It may be the biggest accounting change in decades for many companies. The regulation was drafted by the Financial Accounting Standards Board in 2014, but will only begin to take effect for most companies this year. It is designed to standardize the way that companies recognize revenue, but, as noted in this Forbes article by Tien Tzuo, that standardization may come with a hefty price tag for additional accounting practices and software which track and recognize said income.
If the term "tax season" makes you gloss over, you're not alone. Paperwork doesn't keep the lights on. It does, however, keep the IRS out. Here's what you need to know about 1099 tax forms for 2018 filing:
The Simplified Employee Pension IRA can be an important benefit in your tax arsenal if you are an employer and a great retirement plan if you are an employee or self-employed. Here are some of the most crucial facts about the SEP IRA, based on the IRS Tax Code and this article by Selena Maranjian.