Small Business Tax Roundup
Posted on March 2nd, 2021
Due to recent legislation such as the Tax Cuts and Jobs Act and the CARES Act, tax changes affect both individual taxpayers and small businesses. In 2020, the IRS issued several guidance documents and final rules and regulations that clarified several tax provisions affecting businesses. Here are five of them: Read More…
How Teleworking Is Changing Your Tax Obligations
Posted on February 18th, 2021
As the COVID-19 pandemic persists, many employers continue to encourage or require their employees to work from home (i.e., telework). These remote working arrangements have tax implications. Here’s how they could affect you. Read More…
The 2021 Employee Retention Credit Explained
Posted on February 4th, 2021
When Congress passed the CARES Act in March 2020, most businesses took advantage of the Paycheck Protection Program (PPP) loan to help keep them afloat.
Congress also authorized a second option to help employers—an employee retention credit fully refundable against the business’s payroll tax liabilities.
Since a business could do only one or the other, many businesses passed on the employee retention credit. Read More…
Employer Tax Credit Extended for Payroll Workers
Posted on February 2nd, 2021
The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, made several changes to employee retention tax credits. These tax credits were previously made available under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The most notable change was the modification of the Employee Retention Credit (ERC). Several of the changes apply only to 2021, while others apply to both 2020 and 2021. As such, employers can take advantage of the newly-extended employee retention credit, designed to make it easier for businesses that choose to keep their employees on the payroll – despite challenges posed by COVID-19. Read More…
What is the Excise Tax? Taxable Goods and Services
Posted on January 3rd, 2021
An excise tax is a tax that is generally imposed on the sale of specific goods or services, or on certain uses. Examples of things a federal excise tax is usually imposed on include the sale of fuel, airline tickets, heavy trucks and highway tractors, indoor tanning, tires, and tobacco, as well as other goods and services. Excise taxes are imposed on a wide variety of goods, services, and activities and may be imposed at the time of: Read More…
Employee Business Expense Deductions: Who Qualifies?
Posted on January 1st, 2021
Prior to tax reform, an employee was able to deduct unreimbursed job expenses, along with certain other miscellaneous expenses, that was more than two percent of adjusted gross income (AGI) as long as they itemized instead of taking the standard deduction. Starting in 2018, however, most taxpayers can no longer claim unreimbursed employee expenses as miscellaneous itemized deductions unless they are a qualified employee or an eligible educator. Read More…
Relief for Drought-Stricken Farmers and Ranchers
Posted on December 4th, 2020
Farmers and ranchers who were forced to sell livestock due to drought may have an additional year to replace the livestock and defer tax on any gains from the forced sales. The relief generally applies to capital gains realized by eligible farmers and ranchers on sales of livestock held for draft, dairy or breeding purposes. Sales of other livestock, such as those raised for slaughter or held for sporting purposes, or poultry, are not eligible. Read More…
Beware of Gift Card Tax Scams
Posted on December 2nd, 2020
There’s never an off-season when it comes to scammers and thieves who want to trick people to scam them out of money, steal their personal information, or talk them into engaging in questionable behavior with their taxes. While scam attempts typically peak during tax season, taxpayers need to remain vigilant all year long.
For example, there are many reports of taxpayers being asked to pay a fake tax bill through the purchase of gift cards. While gift cards are a popular and convenient gift for all occasions, they are also a tool that scammers use to steal money from people. Read More…
Tax Preparation vs. Tax Planning
Posted on November 6th, 2020
Many people assume tax planning is the same as tax preparation, but the two are quite different. Let’s take a closer look: Read More…
Tags: Tax Planning
Seasonal Workers and the Healthcare Law
Posted on November 5th, 2020
Businesses often need to hire workers on a seasonal or part-time basis. For example, some businesses may need seasonal help for holidays, harvest seasons, commercial fishing, or sporting events. Whether you are getting paid or paying someone else, questions often arise over whether these seasonal workers affect employers with regard to the Affordable Care Act (ACA). Read More…
Year-End Tax Planning Strategies for Business Owners
Posted on November 3rd, 2020
Several end-of-year tax planning strategies are available to business owners that can be used to reduce their tax liability. Let’s take a look: Read More…
Six Tips for Starting Your Own Business
Posted on October 4th, 2020
Starting your own business can be an exciting prospect, but there is more to it than simply writing a business plan. Also, if you expect to have employees, there are a variety of federal and state forms and applications that you need to complete to get your business up and running. That’s where a tax professional can help. With this in mind, let’s take a look at what you need to know before you start a new business. Read More…
Health Coverage Terms Employers Should Know
Posted on October 4th, 2020
Under the Affordable Care Act, certain employers – known as applicable large employers – are subject to the employer shared responsibility provisions. You might be thinking about these topics as you make plans about 2021 health coverage for your employees. Read More…
Choosing a Business Entity
Posted on October 2nd, 2020
When you decide to start a business, one of the most important decisions you’ll need to make is choosing a business entity. It’s a decision that impacts many things—from the amount of taxes you pay to how much paperwork you have to deal with and what type of personal liability you face, and with the passage of the Tax Cuts and Jobs Act of 2017, it’s more important than ever to choose the business entity that benefits your business.
Tax Due Dates for October 2020
Posted on October 1st, 2020
Employees who work for tips – If you received $20 or more in tips during September, report them to your employer. You can use Form 4070.
Individuals – If you have an automatic 6-month extension to file your income tax return for 2019, file Form 1040 and pay any tax, interest, and penalties due.
Corporations – File a 2019 calendar year income tax return (Form 1120) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension.
Employers – Non-payroll withholding. If the monthly deposit rule applies, deposit the tax for payments in September.
Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in September.
Employers – Social Security, Medicare, and withheld income tax. File form 941 for the third quarter of 2020. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until November 10 to file the return.
Certain Small Employers – Deposit any undeposited tax if your tax liability is $2,500 or more for 2020 but less than $2,500 for the third quarter.
Employers – Federal Unemployment Tax. Deposit the tax owed through September if more than $500.
Tags: Tax Due Dates