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December 18.2024

2 Minutes Read

Embracing ESG: How Ethical Investments Drive Shareholder Value and Sustainability

Attendees engaged in sustainable investment seminar, modern conference.

Understanding ESG: A New Wave of Sustainable Business

Have you ever wondered how businesses can thrive sustainably and responsibly? Enter ESG—Environmental, Social, and Governance—principles, a game-changing framework that not only boosts a company's ecological and social standing but also drives economic success. From minimizing carbon footprints to promoting transparency and worker safety, ESG shows us that doing good is also good for business. An impressive 82% of corporate leaders in 2024 believe ESG will significantly impact performance, highlighting its growing importance.

The Business Case for ESG: Why It Matters

Imagine ESG as not just a checklist, but a strategy that aligns ethical practices with shareholder interests. ESG investments are directly linked to better efficiency and cost savings, which can translate to increased value for shareholders. Companies adopting these principles often find themselves enhanced in resilience, competitiveness, and profitability. This shift is particularly compelling for health-conscious consumers who increasingly align their purchasing decisions with companies committed to sustainable and ethical practices.

Inspiration and Practical Tips

Real stories of change can inspire us. Take, for example, a local business that turned to ESG practices by reducing waste and integrating community wellness activities. Their journey not only improved the environment but deepened their customer relationships, showing tangible value in everyday life. For those considering a more proactive approach to sustainability in their own lives or businesses, starting small—like minimizing waste or supporting businesses that prioritize ESG—can lead to significant positive impacts.

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12.18.2025

What Are the Upcoming Tax Law Changes and How Will They Affect You?

Update Upcoming Tax Law Changes: What You Need to Know As we move further into 2025, significant tax law changes are on the horizon, driven by the recently passed One Big Beautiful Bill Act. These changes will affect individual taxpayers, businesses, and investments alike, making it crucial for everyone to understand the implications on their financial planning. Understanding the Key Provisions The One Big Beautiful Bill Act modifies many existing tax laws, particularly those initially laid down under the Tax Cuts and Jobs Act (TCJA) of 2017. Among the most notable changes is the permanence of current income tax brackets, ensuring that higher rates slated to reset in 2026 will not affect taxpayers before that date. The law also raises the annual state and local tax (SALT) deduction cap from $10,000 to $40,000 through 2029 for joint filers. This change is particularly beneficial for residents in high-tax areas who have struggled with the previous limitations. Understanding this cap could provide substantial savings for many taxpayers. Impact on Individual Taxpayers For individuals, particularly seniors, there is an additional $6,000 deduction available if you're over 65, which can also be claimed by your spouse, provided they meet the age requirement. This could incentivize individuals to recognize more income, especially important in strategies like Roth conversions where taxes on additional income are minimized. Moreover, the permanent adjustments to the standard deduction, which will now be inflated-adjusted, creates a more favorable situation for those using standard deductions as opposed to itemizing. Corporate and Business Tax Changes Business owners will benefit from the permanent extension of the qualified business income deduction (QBI), which allows pass-through entity owners to deduct 20% of qualified income. In 2026, the phase-out limits of that deduction will also expand, making it potentially easier for more taxpayers to take advantage of this beneficial tax structure. Furthermore, deductions for automobile loan interest, now set at $10,000, will offer significant savings for individuals financing their vehicle purchases. This represents a new area of opportunity that many taxpayers may not be aware of yet. Future Predictions and Personal Financial Planning Given the extensive tax law changes, it's prudent to revisit your financial strategies for 2025 and beyond. Working closely with a tax professional is essential to uncover opportunities within these laws to minimize your tax burdens effectively. Consider reviewing your deductions, contributions to retirement accounts, and potential itemized deductions to maximize your returns effectively. The new provisions might offer a chance for financial advisors to rethink their strategies, especially in helping clients navigate an evolving landscape of tax regulations. In conclusion, the upcoming tax law changes reflect a profound shift that will touch upon all taxpayers' lives from individuals to businesses. Knowledge is power when it comes to taxes; hence it would be wise to stay updated, informed, and prepared to take advantage of the benefits these changes promise. To stay ahead of these developments and ensure your planning aligns with the new tax landscape, consider consulting a professional who can provide tailored advice unique to your financial situation.

12.17.2025

How AI-Powered Anomaly Detection is Revolutionizing Indirect Tax Compliance

Update Unlocking the Future of Indirect Tax Compliance with AI The world of tax compliance is evolving rapidly, and one of the most significant advancements comes from the realm of artificial intelligence (AI). Tax professionals are transitioning from tedious manual processes to streamlined, automated systems that not only enhance efficiency but also ensure compliance accuracy. These changes are essential for today's businesses, particularly when it comes to managing indirect taxes. Understanding the Necessity of AI in Tax Processes The challenge of managing indirect taxes often feels overwhelming. Tax professionals frequently juggle vast amounts of data while ensuring that every compliance requirement is met. Mistakes can lead to severe penalties and missed opportunities for input tax credits. According to a Thomson Reuters report, 89% of tax professionals prioritize the accuracy of filings, while over half seek to reduce compliance-related time investments. This is where AI-powered anomaly detection comes into play. AI-Powered Anomaly Detection: A Game Changer Thomson Reuters ONESOURCE's recent addition of AI-driven anomaly detection enhances real-time monitoring of tax compliance issues. This technology provides immediate alerts for discrepancies in transactions, which helps professionals catch errors before they snowball into compliance headaches. Imagine spotting a misapplied rate or an unusual transaction immediately instead of during a stressful last-minute filing rush. The Transition from Reactive to Proactive Compliance Traditionally, tax compliance was a reactive process characterized by reviewing transactions and identifying errors after they had occurred—often leading to a scramble for corrective actions just before deadlines. Now, AI facilitates a significant shift by continuously analyzing data patterns and offering proactive insights. This way, tax professionals can focus on strategic advisory roles rather than merely troubleshooting tax issues. Real-World Changes: A Day in the Life Before and After Automation Consider the daily routine of a tax professional in a global company. Before AI integration, the process involved manually matching invoices and checking compliance with varying tax rates. This labor-intensive work required long hours and often resulted in missing critical anomalies until it was too late. With AI automation, the same professional now receives real-time alerts for tax discrepancies. This change allows them to allocate more time towards strategic planning and business support rather than paperwork. The Advantages of Embracing AI in Tax Compliance Integrating AI solutions not only reduces error rates to below 1% but also enhances overall accuracy in tax calculations. Automated systems facilitate efficient audits and ensure that tax professionals maintain compliance seamlessly. The use of unique configuration insights provided by AI helps to tailor the tax compliance experience, allowing businesses to turn challenges into opportunities for growth. Final Thoughts: Taking a Step Towards DAOT The landscape of indirect tax compliance is shifting dramatically thanks to artificial intelligence. By embracing AI-powered anomaly detection, tax professionals are empowered to become strategic partners rather than just data workers. This transformation makes it crucial for tax departments to consider implementing such technologies to keep pace with the changing regulations. As compliance continues to evolve, don’t let your business fall behind—consider making the leap towards automation and reaping the rewards of a more proactive approach to tax compliance. Call to Action If your team is ready to enhance your tax compliance strategy, explore AI-powered solutions that can take your operations to the next level. Schedule a demo with ONESOURCE Determination today!

12.13.2025

Surprised by Self-Employment Tax? Here’s What Business Owners Need to Know

Update Understanding Self-Employment Tax: A Hidden Challenge for New Entrepreneurs For many small business owners transitioning from employee status, the concept of self-employment tax can come as a surprise. Imagine making $100,000 in profit only to find out that the actual amount you owe in taxes is substantially more than expected due to self-employment taxes. When a service provider discovers that they are liable for both income and self-employment taxes, confusion reigns, leading to cash flow crises and, sometimes, a rushed year-end scramble to cover unexpectedly high tax liabilities. Shocking Realization: The Double Tax Burden One common scenario highlights a crucial lack of information among many self-employed individuals. As employees, they consistently saw a portion of their income withheld for taxes— a simple equation that felt straightforward. Yet, upon becoming self-employed, they didn’t realize they’re now accountable for both the employee and employer portions of the payroll taxes, totaling a hefty 15.3%. This is a significant change because while employees have their contributions managed, self-employed individuals must take full responsibility for the entire tax burden. Breaking Down the Tax Calculation for Clarity Understanding how self-employment tax is calculated is essential to avoid unexpected debts. Using a piece of common advice from tax experts, let’s consider a hypothetical example of a business owner with $100,000 in net business income. First, they need to calculate self-employment tax, which involves a few straightforward steps: Net Income: $100,000 Taxable income for self-employment: $100,000 x 92.35% = $92,350 Self-employment tax: $92,350 x 15.3% = approximately $14,140. In addition, self-employed individuals need to factor in their regular income tax, further complicating their financial picture. The OBBBA and Its Impact on Self-Employment Tax Recent legislative developments, particularly the One Big Beautiful Bill Act (OBBBA), have pleasant implications for small business owners. The act permanently extends the Qualified Business Income (QBI) deductions, allowing eligible taxpayers to deduct up to 20% of their qualified income. This change significantly benefits individuals earning around $100,000, allowing for planning strategies to alleviate tax burdens. Advising Clients: Turning Confusion into Clarity For accountants and tax professionals, each surprise tax season reveals a golden opportunity to educate clients. Not only can they alleviate fears surrounding self-employment taxes, but they can also guide clients through developing proactive tax planning strategies. Rather than simply discussing the tax due, the conversation can shift toward planning deductions and leveraging various IRS allowances. Clients need to be made aware of strategies to reduce their self-employment tax obligations significantly through deductions such as home office expenses, retirement contributions, and health insurance premiums. Preparing for the Next Tax Season: Strategic Insights As a self-employed individual or small business owner, the key to managing these taxes effectively is preparation. By understanding not just what taxes are owed but how to plan for them, business owners can avoid panic as tax season approaches. Setting aside funds throughout the year for taxes and utilizing tools like payroll software can simplify this complex process. The self-employment tax can initially seem daunting, yet with the right knowledge and support, it's possible to navigate it successfully. For those managing their businesses, take the time now to understand your obligations, seek advice, and consider utilizing professional services to ensure your tax filing runs smoothly. As 2026 approaches, start preparing today.

Embracing ESG: How Ethical Investments Drive Shareholder Value and Sustainability

Understanding ESG: A New Wave of Sustainable Business

The Business Case for ESG: Why It Matters

Inspiration and Practical Tips

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