Small Business Tax Briefs: October 2019
UNDERSTANDING AND CONTROLLING THE UNEMPLOYMENT TAX COSTS OF YOUR BUSINESS As an employer, you must pay federal unemployment (FUTA) tax on amounts up to $7,000 paid to each employee as wages during the calendar year. The rate of tax imposed is 6% but can be reduced by a credit (described below). Most employers end up […]
Small Business Tax Briefs: September 2019
THE KEY TO RETIREMENT SECURITY IS PICKING THE RIGHT PLAN FOR YOUR BUSINESS If you’re a small business owner or you’re involved in a start-up, you may want to set up a tax-favored retirement plan for yourself and any employees. Several types of plans are eligible for tax advantages. 401(k) plan One of the best-known […]
Small Business Tax Briefs: August 2019
THE IRS IS TARGETING BUSINESS TRANSACTIONS IN BITCOIN AND OTHER VIRTUAL CURRENCIES Bitcoin and other forms of virtual currency are gaining popularity. But many businesses, consumers, employees and investors are still confused about how they work and how to report transactions on their federal tax returns. And the IRS just announced that it is targeting […]
Small Business Tax Briefs: July 2019
BARTERING: A TAXABLE TRANSACTION EVEN IF YOUR BUSINESS EXCHANGES NO CASH Small businesses may find it beneficial to barter for goods and services instead of paying cash for them. If your business engages in bartering, be aware that the fair market value of goods that you receive in bartering is taxable income. And if you […]
Small Business Tax Briefs: June 2019
EMPLOYERS: BE AWARE (OR BEWARE) OF A HARSH PAYROLL TAX PENALTY If federal income tax and employment taxes (including Social Security) are withheld from employees’ paychecks and not handed over to the IRS, a harsh penalty can be imposed. To make matters worse, the penalty can be assessed personally against a “responsible individual.” If a […]
Small Business Tax Briefs: May 2019
WHAT TYPE OF EXPENSES CAN’T BE WRITTEN OFF BY YOUR BUSINESS? If you read the Internal Revenue Code (and you probably don’t want to!), you may be surprised to find that most business deductions aren’t specifically listed. It doesn’t explicitly state that you can deduct office supplies and certain other expenses. Some expenses are detailed […]
Small Business Tax Briefs: April 2019
UNDERSTANDING HOW TAXES FACTOR INTO AN M&A TRANSACTION Merger and acquisition activity has been brisk in recent years. If your business is considering merging with or acquiring another business, it’s important to understand how the transaction will be taxed under current law. Stocks vs. assets From a tax standpoint, a transaction can basically be structured […]
Small Business Tax Briefs: February 2019
FUNDAMENTAL TAX TRUTHS FOR C CORPORATIONS The flat 21% federal income tax rate for C corporations under the Tax Cuts and Jobs Act (TCJA) has been great news for these entities and their owners. But some fundamental tax truths for C corporations largely remain the same: C corporations are subject to double taxation. Double taxation occurs […]
Small Business Tax Briefs: January 2019
IS THERE STILL TIME TO PAY 2018 BONUSES AND DEDUCT THEM ON YOUR 2018 RETURN? There aren’t too many things businesses can do after a year ends to reduce tax liability for that year. However, you might be able to pay employee bonuses for 2018 in 2019 and still deduct them on your 2018 tax […]
Small Business Tax Briefs: December 2018
2019 Q1 TAX CALENDAR: KEY DEADLINES FOR BUSINESSES AND OTHER EMPLOYERS Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2019. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all […]