Navro's Eddie Harrison on Tax & Compliance in Payment Flows

Stop paying 15.3% taxes on most of your net profits. We were onboarding a new client recently who told us: “We’ve been operating as an S Corp; our previous accountant set it up.” That’s standard. Most business owners file the election and operate as an S Corp while waiting for confirmation. ⚠️ They couldn’t provide the documentation, and the IRS had no record of an accepted election… The election may never have been filed, may have been denied, or the status may not have been properly maintained by the previous accountant. Either way, if the S-Corp election isn’t properly filed or accepted,  The IRS will treat the business under its default tax classification, such as a sole proprietorship, partnership, or C corporation, which can lead to unexpected taxes, payroll issues, and penalties. 👉 Here’s what should’ve happened: The business forms an LLC or corporation, then files an S election with the IRS within the allotted timeframe. (An S Corp is a pass-through entity, so income flows to the owner’s personal return.) Owners take a reasonable salary, subject to payroll taxes. The remaining pass-through profits are not subject to the 15.3% self-employment tax, which can reduce overall payroll taxes. 👉 For our new client,  We first reviewed their situation to confirm that electing an S Corp would actually make sense for them. Then we: •⁠  ⁠Filed the election correctly •⁠  ⁠Confirmed IRS receipt and acceptance 👉 Planning only works if it’s properly completed and followed through. #GoldenCPANuggets #Business #Accounting Have you ever thought something was done only to find out years later it wasn’t?

Operating between the U.S. and Canada? The tax risk is rarely where you expect it. Most founders assume cross-border tax complexity starts with incorporation structure. In reality, it often begins much earlier - with payroll decisions, contractor classification, permanent establishment exposure, or simple misalignment between accounting and tax reporting. We regularly see profitable companies run into avoidable issues because no one looked at the full cross-border picture early enough. In our article, we break down: • where cross-border tax exposure actually starts • common structural blind spots • how compliance risk quietly compounds over time • what founders should review before the next filing cycle Read the full breakdown here: https://lnkd.in/essyZgZB #CrossBorderTax #USCanada #TaxStrategy #Founders #CFO #TYMConsulting

Your CPA keeps saying, “You should really consider an S-Corporation,” and you’re wondering if it’s just tax jargon or if it actually matters. It matters. If you’re operating as a sole proprietor or single-member LLC, all of your business profits are subject to self-employment tax. That means you’re paying both the employer and employee portions of Social Security and Medicare on every dollar you earn. For profitable businesses, that’s often the biggest tax leak. An S-Corporation doesn’t eliminate taxes, but it does change how they apply. Instead of all profits being hit with self-employment tax, S-Corp owners must pay themselves a reasonable salary, which is subject to payroll taxes. Any remaining profits can be taken as distributions—which are not subject to self-employment tax (though they are still subject to income tax). That difference can create meaningful savings. For example, if your business earns $150,000 and your reasonable salary is $80,000, payroll taxes apply only to that $80,000—not the remaining $70,000. Of course, the IRS cares a lot about that word reasonable. Underpaying yourself to avoid payroll taxes is a common audit trigger. Proper salary analysis, documentation, payroll compliance, and clean books are critical. S-Corps also come with added responsibilities—payroll, filings, and ongoing compliance—so they’re not right for every business. But for owners with consistent profits, they can be one of the most effective tax-planning tools available. Bottom line: an S-Corp doesn’t help you avoid taxes. It helps you stop overpaying them—legally. If you’re ready to properly structure your LLC and evaluate whether an S-Corporation makes sense, contact Sahil Chaudry at Carbon Law Group. He can be reached directly at sahil@carbonlg.com. #CarbonLawGroup #TaxStrategy #SCorp #SmallBusinessTips #LLC

This Tax Change Could Break Unprepared Businesses You think your business cash flow is healthy… but what if the ATO is about to change the rules? In this episode, I break down the ATO’s shift to real-time reporting and payments and why payday super, PAYG withholding changes, and GST collection reforms could hit unprepared businesses hard. As a business advisory and accounting firm, we work with Australian business owners every day to stay ahead of tax compliance, payroll obligations, and cash flow management. Here’s what’s coming and how to prepare before it’s too late. In this episode, you’ll learn: ●       What payday super means for employers from July 2026 ●       How real-time ATO reporting impacts payroll and super ●       Why GST and PAYG withholding may soon be collected automatically ●       The cash flow risks for growing businesses ●       How to strengthen your financial processes now

Heads up for the 2025 tax year The IRS is ramping up enforcement beginning in 2026, and the changes are already shaping how 2025 returns should be prepared. The focus is on accuracy, documentation, and consistency—not just big-dollar audits. Using advanced data analytics and expanded third-party reporting, the IRS is actively reviewing: ▪ 1099 income vs. amounts reported on returns to spot underreported or omitted income ▪ Credits claimed without proper support, especially refundable credits like CTC and education credits ▪ Patterns of inconsistencies across multiple tax years that may signal compliance issues ▪ Business mismatches, including differences between gross receipts, payroll filings, and information returns (W-2s, 1099s, payroll reports) In short: the era of “estimate and hope” filing is officially over. Returns now need to be: Accurately reported – income should align with all tax documents issued Properly documented – credits and deductions should be supported by records Consistent with third-party filings – what’s reported to the IRS must match what’s on your return Even small discrepancies—missing income, unsupported credits, or recurring inconsistencies—can trigger notices, delays, or follow-up questions. The takeaway: Getting it right the first time matters more than ever. Careful reporting and good documentation for your 2025 return can help avoid headaches down the road.

What your accountant wishes you’d done first, and not just at tax time. Here’s how to set it up: - Start by setting up clear income and cost of goods sold (COGS) accounts at the top of your chart of accounts.  Include sales or revenue, returns, and other income, along with COGS accounts like purchases, direct labor, materials, and inventory if applicable. - Use expense accounts that line up with common tax deductions to simplify filing. - Keep owner, payroll, and tax related accounts separate so nothing gets mixed or misreported - Skip overusing the “Miscellaneous” account. Lumping too many expenses into a catch-all category makes it harder to track deductions accurately. - Review and adjust your chart of accounts as your business changes and grows A tax ready chart of accounts keeps reports clear, tax prep smooth, and communication with your accountant easier. If you’re not sure whether your chart of accounts is set up the right way, book a call and let’s make sure it’s truly tax ready. #Taxes #ChartofAccounts #Bookkeeping #Accounting #Bookkeeper #Quickbooks #GeneralContractor #Trades #HomeServices #HomeRemodeling #WilliamsburgBookkeeper #RichmondBookkeeper #NewportNewsBookkeeper #VirginiaBookkeeper #FourOaksBookkeepingLLC

𝟳 𝗠𝗼𝘃𝗲𝘀 𝗘𝘃𝗲𝗿𝘆 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗢𝘄𝗻𝗲𝗿 𝗦𝗵𝗼𝘂𝗹𝗱 𝗠𝗮𝗸𝗲 𝗶𝗻 𝗤𝟭 𝘁𝗼 𝗟𝗼𝘄𝗲𝗿 𝟮𝟬𝟮𝟲 𝗧𝗮𝘅𝗲𝘀 Most business owners wait until the end of the year to think about taxes. By then, the biggest opportunities are already gone. Tax savings are created early. What you do in Q1 often determines whether you overpay the IRS or keep more of what you earn. Here are seven smart moves to make now. 𝟭. 𝗥𝗲𝘃𝗶𝗲𝘄 𝗹𝗮𝘀𝘁 𝘆𝗲𝗮𝗿’𝘀 𝗿𝗲𝘁𝘂𝗿𝗻 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰𝗮𝗹𝗹𝘆 Your prior return is a roadmap. Identify where you paid the most tax, missed deductions, or used an inefficient income structure. 𝟮. 𝗥𝗲𝗲𝘃𝗮𝗹𝘂𝗮𝘁𝗲 𝘆𝗼𝘂𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 As profits grow, the wrong entity can create unnecessary self employment or payroll taxes. Changes made early have the biggest impact. 𝟯. 𝗥𝗲𝘃𝗶𝗲𝘄 𝗵𝗼𝘄 𝘆𝗼𝘂 𝗽𝗮𝘆 𝘆𝗼𝘂𝗿𝘀𝗲𝗹𝗳 Owner compensation matters. Salary, distributions, and payroll timing should be reviewed in Q1, not December. 𝟰. 𝗖𝗹𝗲𝗮𝗻 𝘂𝗽 𝗯𝗼𝗼𝗸𝗸𝗲𝗲𝗽𝗶𝗻𝗴 𝗲𝗮𝗿𝗹𝘆 Tax planning relies on accurate data. Messy books lead to bad decisions. Strong bookkeeping is a tax strategy. 𝟱. 𝗣𝗹𝗮𝗻 𝗺𝗮𝗷𝗼𝗿 𝗽𝘂𝗿𝗰𝗵𝗮𝘀𝗲𝘀 𝗶𝗻 𝗮𝗱𝘃𝗮𝗻𝗰𝗲 Equipment, vehicles, and technology should be timed intentionally to maximize deductions and manage cash flow. 𝟲. 𝗕𝘂𝗶𝗹𝗱 𝗮 𝘁𝗮𝘅 𝘀𝗮𝘃𝗶𝗻𝗴𝘀 𝘀𝘆𝘀𝘁𝗲𝗺 Set aside taxes intentionally, forecast payments, and eliminate surprises. Planned taxes are far less stressful. 𝟳. 𝗦𝗰𝗵𝗲𝗱𝘂𝗹𝗲 𝗾𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆 𝘁𝗮𝘅 𝗽𝗹𝗮𝗻𝗻𝗶𝗻𝗴 𝗿𝗲𝘃𝗶𝗲𝘄𝘀 Tax planning is ongoing. Quarterly reviews allow adjustments before it is too late. Learn more at 𝘀𝗵𝗼𝗿𝗲𝗳𝗽.𝗰𝗼𝗺, and book a free 15-minute consultation today.

What your accountant wishes you’d done first, and not just at tax time. Here’s how to set it up: - Start by setting up clear income and cost of goods sold (COGS) accounts at the top of your chart of accounts.  Include sales or revenue, returns, and other income, along with COGS accounts like purchases, direct labor, materials, and inventory if applicable. - Use expense accounts that line up with common tax deductions to simplify filing. - Keep owner, payroll, and tax related accounts separate so nothing gets mixed or misreported - Skip overusing the “Miscellaneous” account. Lumping too many expenses into a catch-all category makes it harder to track deductions accurately. - Review and adjust your chart of accounts as your business changes and grows A tax ready chart of accounts keeps reports clear, tax prep smooth, and communication with your accountant easier. If you’re not sure whether your chart of accounts is set up the right way, book a call and let’s make sure it’s truly tax ready. https://lnkd.in/e6GwGK9t #Taxes #ChartofAccounts #bookkeeping #accounting #bookkeeper #quickbooks #taxaccountant #taxconsultant #taxstrategist #taxpreparation #singlememberLLC #SCorp #virtualbookkeeper #remotebookkeeper #CDGBusinessSolutions

Over-Compliance is a Thing. It is February 2026, and the New Tax Acts are already changing behaviour. More people and businesses are now aware than ever before of the need to file taxes, pay taxes, and be compliant. That is a good thing. But there is a problem. Misinformation and half-truths are all over the place. People don’t know everything, yet they listen to everything. They read something online, hear something from a colleague, or see a post somewhere… and suddenly assume it applies to them. And what follows is something we can call over-compliance. I have seen /heard of cases where: • A company that should not charge VAT is charging VAT anyway. • An individual is trying to deduct WHT from rent. • A company with 4 staff suddenly believes it must comply with pension regulations. • Companies misapply thresholds and register for obligations prematurely. • Employers want to implement pension, but only the employee contributes. And many more. • A company wants to withold VAT from a suppliers invoice when the supplier did not charge VAT. This post is not to teach which taxes you should or should not pay. It is to highlight something simpler, but equally important: Not every rule applies to you. • Some obligations apply only to companies. • Some apply only to individuals. • Some apply only to large companies, with explicit exemptions for small companies. • And even within those categories, exceptions exist. Compliance is good. But correct compliance is what matters. Because when you comply with rules that do not apply to you, you create unnecessary costs, administrative burdens, and in some cases, new compliance risks. So before you implement something, before you register for something, before you start deducting or charging something. Take the time to understand whether it actually applies to you. Compliance is not about doing everything. It is about doing the right things, at the right times. #Tax #NigeriaTax #Compliance #Finance #Accounting #Business #CFO #TaxCompliance #SMEs #Payroll