🚨 California Expands Retirement Plan Mandate — Action needed by December 31, 2025 California has expanded its retirement mandate to the smallest employers. If you have even one W-2 employee (other than the owner or owner’s spouse) and do not sponsor a qualified plan, you must either (a) adopt a private plan (e.g., 401(k), SIMPLE IRA) or (b) register for CalSavers by December 31, 2025. Penalties for non-compliance: $250 per eligible employee if you remain non-compliant 90+ days after notice, plus an additional $500 per eligible employee at 180+ days. Those add up quickly.

The Social Security Administration announced a 2.8% boost to monthly Social Security and Supplemental Security Income (SSI) benefits for 2026, another rate drop versus last year's increase of 3.2%. The increase is based on the rise in the Consumer Price Index over the past 12 months ending in September 2025. For those contributing to Social Security through wages, the potential maximum income subject to Social Security taxes is increasing to $184,500. This represents a 4.8% increase in your Social Security taxes. What's of interest here is the continued practice of raising the income subject to Social Security well beyond the annual Consumer Price Index. Here's a recap of the key dollar amounts:

The IRS doesn’t care how exciting your rodeo belt buckle is — they care whether you’re engaged in the activity with the actual intent to make a profit.If it’s a business, losses are deductible.If it’s a hobby, deductions are limited and can’t create a net loss against other income.   Key Test: Can you demonstrate a profit motive? The IRS presumes a profit motive exists if you make a profit in 3 out of 5 consecutive years (or 2 out of 7 for horse-related activities, including breeding, racing, and showing — and yes, rodeo counts if horses are integral to the activity).