First State CPAs and Associates

4 hours ago

𝗛𝗼𝘄 𝗱𝗼 𝗜 𝗺𝗲𝗮𝘀𝘂𝗿𝗲 𝘄𝗵𝗲𝘁𝗵𝗲𝗿 𝗮 𝗻𝗲𝘄 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗯𝗲𝗻𝗲𝗳𝗶𝘁 𝗶𝘀 𝗴𝗶𝘃𝗶𝗻𝗴 𝗺𝘆 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗮 𝘀𝗼𝗹𝗶𝗱 𝗿𝗲𝘁𝘂𝗿𝗻 𝗼𝗻 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁?

Tracking a real return on family perks like Trump Accounts comes down to combining enrollment data with your payroll and retention numbers.

Focus on three main measurements:
• Track participation rates by comparing how many eligible working parents sign up versus your total headcount.
• Monitor participation across wage levels so your plan passes statutory nondiscrimination testing and stays compliant.
• Compare turnover rates among working parents before and after launch to see if the perk cuts your hiring costs.

To track this in your business, set up a dedicated sub-account in your general ledger for benefit contributions and administrative fees. Compare this specific P&L expense line item against your historical recruiting and onboarding costs every quarter.

𝘋𝘰 𝘺𝘰𝘶 𝘤𝘶𝘳𝘳𝘦𝘯𝘵𝘭𝘺 𝘵𝘳𝘢𝘤𝘬 𝘵𝘩𝘦 𝘙𝘖𝘐 𝘰𝘯 𝘺𝘰𝘶𝘳 𝘦𝘮𝘱𝘭𝘰𝘺𝘦𝘦 𝘣𝘦𝘯𝘦𝘧𝘪𝘵𝘴, 𝘰𝘳 𝘥𝘰 𝘺𝘰𝘶 𝘮𝘰𝘴𝘵𝘭𝘺 𝘰𝘧𝘧𝘦𝘳 𝘱𝘦𝘳𝘬𝘴 𝘣𝘢𝘴𝘦𝘥 𝘰𝘯 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶𝘳 𝘵𝘦𝘢𝘮 𝘢𝘴𝘬𝘴 𝘧𝘰𝘳? ... See MoreSee Less

First State CPAs and Associates

1 day ago

𝗪𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝗻𝘂𝗺𝗯𝗲𝗿 𝗼𝗻𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝘁𝗵𝗮𝘁 𝗸𝗲𝗲𝗽𝘀 𝘆𝗼𝘂 𝗮𝘄𝗮𝗸𝗲 𝗮𝘁 𝗻𝗶𝗴𝗵𝘁?

We genuinely want to know. ... See MoreSee Less

First State CPAs and Associates

2 days ago

𝗪𝗵𝗮𝘁 𝗵𝗮𝗽𝗽𝗲𝗻𝘀 𝗶𝗳 𝗺𝘆 𝗰𝗵𝗶𝗹𝗱'𝘀 𝗼𝘁𝗵𝗲𝗿 𝗽𝗮𝗿𝗲𝗻𝘁 𝗮𝗻𝗱 𝗜 𝗯𝗼𝘁𝗵 𝗰𝗹𝗮𝗶𝗺 𝗼𝘂𝗿 𝗰𝗵𝗶𝗹𝗱 𝗼𝗻 𝗼𝘂𝗿 𝘁𝗮𝘅𝗲𝘀?

The IRS gives the default claim to the custodial parent, who is the parent the child lives with for at least 183 nights during the year.

When both parents claim the same child, the situation unfolds in three main stages:
1. The first return gets accepted by the e-file system, while the second return gets rejected because the child's Social Security number is already marked as used.
2. The second parent must mail in a signed paper return to force an IRS review, triggering Notice CP87A where both parents must submit residency proof like school or medical records.
3. The IRS awards the claim based on night counts or higher income if custody is an exact 50/50 split, forcing the non-qualifying parent to pay back credits with interest and penalties.

A practical way to protect yourself is to keep third-party residency records on file if you are the custodial parent, or secure a signed IRS Form 8332 from the custodial parent before filing if you are the noncustodial parent.

𝘐𝘴 𝘵𝘩𝘦 183-𝘯𝘪𝘨𝘩𝘵 𝘳𝘶𝘭𝘦 𝘴𝘰𝘮𝘦𝘵𝘩𝘪𝘯𝘨 𝘺𝘰𝘶 𝘩𝘢𝘷𝘦 𝘦𝘷𝘦𝘳 𝘩𝘢𝘥 𝘵𝘰 𝘤𝘢𝘭𝘤𝘶𝘭𝘢𝘵𝘦 𝘧𝘰𝘳 𝘺𝘰𝘶𝘳 𝘰𝘸𝘯 𝘧𝘢𝘮𝘪𝘭𝘺? ... See MoreSee Less