Hire family for tax breaks
by Anne D’Amico, CPA/PFS
 

Unincorporated business owners can realize valuable tax benefits by hiring family members as employees. The most important rule to follow is to treat the family member as you would any other employee. Their pay must be reasonable and the work performed must be necessary to the business.

The advantages of hiring a spouse generally arise from the ability of the spouse to receive tax-favored fringe benefits in his or her capacity as an employee. A spouse who is hired as an employee generally can receive health insurance coverage that includes coverage for all family members, including the business owner, which allows the business a full deduction for family health insurance premiums. The spouse may also be able to participate in the medical reimbursement plan to cover uninsured medical expenses. In addition, a spouse may be entitled to participate in the business’s qualified retirement plan. At a minimum, a spouse’s wages are subject to social security and Medicare taxes, increasing his or her future benefits.

Hiring children as employees can also provide valuable tax benefits. Income taxes can be reduced by shifting business income to wages taxed at the child’s lower rate. Sole proprietors are not required to pay social security or Medicare tax for their own children under the age of 18. Another benefit to employing your children is that they will be eligible to contribute the lesser of their wages or $3,000 to either a traditional IRA or Roth IRA each year.

Employing family members can be beneficial in many ways. To be sure you are complying with federal and state laws, call us.

31st annual Heart Day
by Nancy Zemlak, CPA
 

Once again, Alloy Silverstein is proud to be a headline sponsor of the American Heart Association’s annual Heart Day. Now in its 31st year, Heart Day has become a South Jersey tradition!

Heart Day is a fun-filled celebration held at Ponzio’s Restaurant in Cherry Hill. It is a day filled with activities for family, friends and coworkers, featuring local media celebrities, mascots, a health fair, entertainment, a silent auction, great food and more. Since its inception, Heart Day has contributed nearly $1.5 million to the mission and work of the American Heart Association. Each year a portion of the funds raised is allocated to the purchase and distribution of automated external defibrillators (AEDs) as a collateral way of saving lives. The 2002 recipients of AEDs included: Bishop Eustace Prep School, Camden Catholic High School, Cherry Hill Board of Education, Cherry Hill Police Department (4) and Moorestown High School.

Please contact us if you are interested in becoming a corporate sponsor or wish to purchase raffle tickets. This year’s raffle grand prizes are:

* Walt Disney World – Trip for two for 4 days/3 nights including round-trip airfare, park tickets and hotel accommodations at Disney’s All-Star Resorts.

* New York City – Trip for two for 3 days/2 nights including round- trip limousine, theater tickets and accommodations at the Marriott Marquis or comparable hotel.
* Las Vegas – Trip for two for 3 days/2 nights including round-trip airfare and hotel accommodations at the Bellagio Hotel and Casino.

* Ravitz Shop Rite Stores – Three $1,000 gift certificates.

* Dinner for two – Includes dinner for two each month for a year at 12 of the area’s finest restaurants.

Please join us for Heart Day on Wednesday, June 4. Hope to see you there!

Employee of the Quarter
 

Our employee of the quarter is Michelle Harvey, CPA. Michelle graduated in 1989 from Rutgers University - Camden with a Bachelor of Science degree in accounting. After taking time off to raise her two children, Michelle gained experience with a local firm before joining our firm in 1997. She received her CPA designation in 2001 and is a member of the American Institute of Certified Public Accountants and the New Jersey Society of Certified Public Accountants. She is also a member of the firm’s business tax committee.

Michelle was raised in Collingswood and now resides in nearby Haddon Township with her son Dave. She enjoys attending his athletic events and can be heard cheering for him on the basketball court and football field. Post tax season, Michelle relaxes by gardening and spending time with her family, recently extended by a new member. This past March, her daughter Cyndi and son-in-law Brian welcomed their first child, Samantha, which makes Michelle a very young, first-time grandmother. She now has another very important hobby – spoiling Samantha!

Alloy Happenings
by Brad Sears
 

Steve Shapiro, CPA/PFS
Was named Chairman of the Trust Committee of MetLife Bank.

Joe Adams, CPA
Was appointed to the Board of Directors of The Bank.

George E. Barrett, CPA
Was elected Secretary of the Southwest Chapter of the New Jersey Society of Certified Public Accountants. George also participated in a 100-hole golf marathon for the Fellowship of Christian Athletes on April 21.

Rich Middleton, CPA
Was reelected to the Board of Directors of VNA Home Care for a three-year term. Rich was also reelected to a two-year term as Treasurer of VNA Home Care and appointed Chairman of the Finance Committee for VNA Home Care, Moorestown VNA and Partners in Home Care.

Lee Sheilds, CPA
Was reelected to the Board of Directors and appointed Treasurer of LeTip of Cherry Hill, a national professional networking organization.

Brad Sears
Was appointed to the Board of Directors of the Runnemede Youth Athletic Association.

Thomas F. Adams, CPA
Was reelected trustee of Post 372 of the Cherry Hill American Legion.

Karyn Warner-Meixner
Received an Executive Advisory Council Scholarship from Rutgers University - Camden School of Business.

Congratulations to:
Michelle Harvey, CPA on the birth of her granddaughter Samantha on March 13.

The firm proudly served as a headline sponsor of the New Jersey Chapter of the Arthritis Foundation annual Arthritis Walk, held May 3 at Cooper River Park in Pennsauken.