Archives for October 2025

Maximizing the Tax Benefits of Your Remote Workforce

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The pandemic fundamentally altered how many U.S. businesses operate. Distributed teams and flexible arrangements have become permanent fixtures rather than temporary fixes.

For employers and workers, this also means new opportunities and challenges for tax planning and compliance.

The reality of remote workers

Companies have discovered that productivity doesn’t require physical proximity. In fact, 60% of remote workers report their flexible work arrangement has boosted their ability to get work done and meet deadlines. This proven effectiveness means that today’s employers may have teams spanning cities and states, creating complex tax implications that extend beyond traditional office-based considerations.

Comprehensive tax credit and incentive (TC&I) analysis has become essential for businesses supporting remote teams. These specialized programs provide detailed assessments of available opportunities, breaking down qualification requirements and implementation strategies tailored to your specific business model.

TC&I experts examine your operations, identifying federal, state and local programs that align with your workforce distribution, ensuring you’re capturing every available benefit while maintaining full compliance across all jurisdictions where your employees work.

Navigating the nexus challenge

Before your businesses can capitalize on these opportunities, you must establish and manage nexus obligations.

State tax nexus determines where your business has sufficient connection to warrant tax obligations, and remote employees can create these connections in states where you’ve never maintained a physical presence.

Each state has different standards for establishing nexus through employee activities. Some require minimal employee presence to trigger obligations, while others have higher thresholds. Getting nexus right requires a proactive approach:

  • Conduct regular nexus assessments. Implement regular reviews of employee locations and activities to identify new potential nexus obligations before they become compliance issues.
  • Establish clear remote work policies. Develop guidelines that address tax implications of employee relocations and temporary work arrangements.
  • Engage multi-state tax professionals. Partner with specialists who understand the nuanced requirements across different jurisdictions.

Credits that reward a remote work strategy

Once your nexus obligations are properly managed, the evolving work landscape has expanded access to numerous tax credit opportunities for remote employers. For example:

  • State-specific remote work incentives. Various states offer credits for companies hiring remote workers or relocating operations.
  • Home office deduction optimization. While limited for employees, businesses can structure arrangements to maximize legitimate office-related deductions.
  • Technology investment credits. Many jurisdictions offer incentives for investments in equipment and software that enable remote collaboration.
  • Economic development incentives. Location-specific credits may be available when remote workers are based in designated economic zones.

Making the most of your remote workforce

Regular assessment of your workforce distribution, combined with strategic implementation of available credit programs, positions your business to thrive. Learn how the experts at Magone & Co can help. Reach out or give us a call today at (973) 301-2300.

 

This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance that is specific to your business situation.

 

Why Cyber Criminals Love Small Businesses (And How to Make Them Think Twice)

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Remember the big Target data breach a few years ago?

Hackers didn’t just wake up one day and decide to attack the retail giant directly. Instead, they strategically planned and infiltrated a small HVAC contractor that serviced Target’s stores, using that access point to compromise over 41 million customer records.

Cybercriminals continue to view small businesses as stepping stones to bigger prizes — and your sensitive data makes your small business an attractive entry point.

The small business cybersecurity gap

Forty-seven percent  of businesses with fewer than 50 employees have no cybersecurity budget. Even more alarming, 51% have no cybersecurity measures in place at all.

Small business owners wear many hats, juggling multiple responsibilities and often lacking the resources to stay on top of evolving security threats. Small businesses typically store valuable financial information — including tax records, employee data and customer payment details — while maintaining fewer security protocols than larger corporations.

When small businesses suffer breaches, the consequences ripple through the economy and impact countless livelihoods. Beyond the immediate financial losses, these attacks can force business closures, eliminate jobs and erode customer trust.

The good news? You don’t need a Fortune 500 budget to build a strong defense against cybercriminals. Check out 10 ways to help protect the sensitive data that your business needs to operate:

  1. Maintain current software. Regular software updates are your first line of defense. Configure devices and applications to update automatically, ensuring you have the most updated security measures in place.
  2. Implement strong authentication practices. Replace simple passwords with memorable passphrases that combine multiple unrelated words and symbols. Layer this protection with multi-factor authentication to make it as secure as possible.
  3. Deploy anti-malware protection. Invest in reputable antivirus software and ad-blocking tools. These solutions actively scan for and neutralize threats before they can compromise your data.
  4. Establish secure network connections. Utilize Virtual Private Network (VPN) services to encrypt your internet traffic, especially when accessing financial data remotely. This encryption makes intercepted data virtually unreadable to attackers.
  5. Have backup systems in place. Maintain and secure backups of all critical documents and financial records. Store these backups on separate devices or in a cloud service that remains walled off from your primary systems.
  6. Secure email communications. Since data often travels via email, implement encryption protocols and consider using secure file-sharing platforms for sensitive document transmission.
  7. Limit access and permissions. Grant employees access only to the sensitive information necessary for their specific roles. Regularly audit these permissions, especially as employees move into new roles or leave the company.
  8. Develop an incident response plan. In advance of a possible breach, make sure you have detailed procedures nailed down, including steps for containing threats and notifying impacted parties.

Turning knowledge into protection  

Protecting your tax data is essential for small business survival. Be proactive in preparing your business for whatever the future may bring. Questions about how we protect our clients’ data? Don’t hesitate to reach out.

 

This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance that is specific to your unique circumstances.