In today’s tightening job market, in order to attract and retain the best employees, small businesses need to offer not only competitive pay, but also appealing fringe benefits. Let’s take a quick look at some popular options available. Health insurance. If you maintain a health care plan for employees, coverage under the plan isn’t taxable to…
Deducting business use of an aircraft is not too much different than deducting the costs of a company owned vehicle. It pretty much follows the same rules. The hard part is to be able to substantiate those deductions. One of the most important questions that must be addressed is when the cost of private aviation…
With the 2018 tax reform changes now in place, C corporations have stood out as a winner among other business entities. How C Corporations Are Taxed Under the 2018 Tax Reform A C corporation is not a pass-through entity and is completely separate from its owners when it comes to taxes. C corporation earnings are…
Does your business reimburse employees’ work-related travel expenses? If you do, you know that it can help you attract and retain employees. If you don’t, you might want to start, because changes under the Tax Cuts and Jobs Act (TCJA) make such reimbursements even more attractive to employees. Travel reimbursements also come with tax benefits,…
Classifying a worker as an independent contractor frees a business from payroll tax liability and allows it to forgo providing overtime pay, unemployment compensation and other employee benefits. It also frees the business from responsibility for withholding income taxes and the worker’s share of payroll taxes. For these reasons, the federal government views misclassifying employees…
If your small business doesn’t offer its employees a retirement plan, you may want to consider a SIMPLE IRA. Offering a retirement plan can provide your business with valuable tax deductions and help you attract and retain employees. For a variety of reasons, a SIMPLE IRA can be a particularly appealing option for small businesses.…
Many specified service businesses (SSB) are labor intensive, but may not necessarily acquire a great deal of property. With depreciation limited to some office furniture and computers, these businesses can generate substantial profits, often employ a great number of people, and spend substantial amounts on human capital. The language in Section 199A (Qualified Business Deduction) leaves…
The S corporation business structure offers many advantages, including limited liability for owners and no double taxation (at least at the federal level). Not all businesses are eligible with the new 21% flat income tax rate that now applies to C corporations. S corp election may not be right for your business today. Tax…
The Tax Cuts and Jobs Act (TCJA) liberalized the eligibility rules for using the cash method of accounting, making this method — which is simpler than the accrual method — available to more businesses. Now the IRS has provided procedures a small business taxpayer can use to obtain automatic consent to change its method of…
The term “Middle Class” is thrown around a lot by politicians. If you ask a politician what their definition of middle class, I’m sure you would get a lot of different answers. Because of cost of living, the definition of middle class varies depending on where you live. In order to find the middle class,…