Get Ready for Tax Season
Three challenges to come with the 2015 tax season and how to adapt
“Isn’t it funny how day by day nothing changes, but when you look back everything is different?” – C.S. Lewis
Without fail, tax season arrives at the beginning of each New Year. Just like the quote above, as you reflect on past tax seasons, so much has changed through the years. And each season brings a new set of challenges. Below are three that you’ll be facing this year and an easy solution to ensure that you’ll retain your sanity through April 15.
Top 3 Challenges of the Season
Challenge #1: New tax laws
New tax laws and nuances are one of the biggest challenges all businesses face. Unsurprisingly, the Affordable Care Act (ACA) continues to include new provisions for businesses. Large employers with 50 or more full-time employees, for example, will now have annual reporting responsibilities regarding what health insurance they offered to their full-time employees, an optional rule for 2014. In addition, employers may need to report the value of the health insurance coverage on their employees’ Form W-2.
Changes made in 2014 to tangible property capitalization regulations, commonly referred to as “repair regulations,” will also continue to impact businesses in 2015.
To stay on top of new tax information, many businesses turn to the 2015 Cumulative Tax Guide by Professor John Connors. The 600-page guide explains and analyzes recent tax legislation and can be purchased through the American Institute of CPAs (AICPA).
Challenge #2: Increase in volume of work (and stress)
While most businesses have a “busy season,” the volume of work and stress that tax season places on an accounting team is unprecedented. Your staff is already working at its full potential – and then tax season responsibilities are added to the mix. An added stressor, this work needs to meet strict government regulations.
Stress can have a negative impact on performance and personal health. It’s important to allow a work/life balance to avoid burnout. While overtime hours may be a guarantee, employees still need downtime.
Change #3: Changing workforce
There are many benefits to working with the same tax professionals each year. However, this is becoming more challenging in today’s changing workforce.
In 2011, the first of the baby boom generation (born between 1946 and 1964) reached what used to be known as retirement age. For the next 18 years, boomers will be turning 65 at the rate of about 8,000 a day. Replacing many boomers, millennials (born in the 1980s and 1990s) bring different strengths and experiences to the workplace. While they are tech-savvy and motivated, they also have a higher turnover rate. With this, companies need to find a source for reliable tax season help.
How to Tackle These Challenges
There are a number of ways to lessen tax season burdens. Topping the list is adding qualified tax professionals to your team. Tax pros are well-versed in tax law and greatly reduce work overload and stress.
To source qualified help, many organizations partner with a staffing agency to access a reliable stream of full-time and contract workers. Hiring contract workers is common practice during tax season as they:
• Reduce training costs. Contract-to-hire employees are fully trained and ready to make an immediate impact on your organization.
• Save on payroll and benefit costs until ready to hire. If you do not want or need to hire the employee full time, you can simply part ways.
Hunter Hamilton is your source for qualified talent during the times of change, including tax season. We’ll take care of the hiring process for you and present you with the talented, qualified professionals to save you time and money. Contact us today to discuss your needs so that we can quickly get to work for you and help you stay on top of the challenges to come during this busy season.