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To be deductible, a business expense must be both ordinary — common and accepted in your industry — and necessary, helpful and appropriate for your trade or business. Generally, you cannot deduct personal, living or family expenses, but if you have an expense for something that is used partly for business and partly for personal purposes, you can divide the total cost between the business and personal parts and then deduct the business part.
If you get pleasure from rewarding your team's performance with bonuses, you are not alone. But it's important to consider how those bonuses are given, along with the tax implications for both you and the employee.
There are many tax credits that business owners can take advantage of, and today we're talking about the Disabled Access Credit, which is specifically extended to business owners who employ people who have disabilities.
The majority of — if not all — employers understand that they must report the salary, overtime pay and bonuses that their employees receive as compensation for the jobs they perform. But did you know that the IRS also wants to know about other forms of taxable compensation?
Pay stubs can be referred to as pay or wage statements and may be considered the decoder ring of payroll. Pay statements summarize employees’ gross pay, taxes and deductions, and net pay. They can be in printed format or made available electronically.
The Fair Labor Standards Act (FLSA) requires that employees receive a federal minimum wage in exchange for their work. However, did you know that workers in the foodservice industry are not always paid an hourly minimum wage? Why is that?
Are there any misconceptions that you've had about payroll? Did you end up finding out the reality of the situation after experiencing a series of unfortunate events? Hopefully, your answer is no, but whether you have been duped by nonfactual information or not, staying informed is the key to protecting yourself. So, keep reading for a chance to separate fact from fiction when running payroll for your business. Let's get started!
If you know in advance what common errors employers make with W-2s, maybe you can avoid those mistakes next year. Know also that the data needed for state W-2 reporting may be more difficult to gather from far-flung employees, but states are cracking down on employers who haven’t withheld.
Ensure the longevity and success of your business by creating a strategy to transfer ownership. Don't let your hard work go to waste by failing to envision the company's future without you at the helm. Follow the advice below to properly plan the estate of your family business before tragedy strikes.
At the end of every year, most businesses go through the process of filling out a Form W-2 for each employee, which can make for a very stressful time. The pressure of knowing that even the smallest of mistakes can result in costly consequences can make business owners uneasy.
Paying overtime is not just a matter of paying employees the standard 1.5 times their normal pay rate when they work more than 40 hours in a week. Overtime payment errors can occur if you miss a payment:
Have you ever wondered how you’re supposed to determine whether your organization is eligible for exemption from federal income tax? The possibility of being tax-exempt is permitted under section 501(a) of the Internal Revenue Code.
Let's say you're a small business that doesn't have enough employees to warrant an entire human resources department. At the same time, the idea of manually doing payroll just doesn't suit you.
According to U.S. Department of Labor data, registered national apprenticeships have increased by 64% since 2012, with over 241,000 new apprentices entering the system in 2021 and 593,000 actively engaged in programs. While those numbers appear respectable, they represent only a drop in the bucket of nationwide employees. Stigmas persist against hiring candidates who lack college degrees, along with misunderstandings about the potential scope for more industries.
When you want to apply for an SBA loan, you must do so by going through a bank or credit union. Then, the bank or credit union applies to the SBA for a loan on your behalf. This application process is intended to obtain a loan guarantee, meaning if you end up defaulting on an SBA loan you’re approved for, then the government will pay the lender the guaranteed amount on your behalf.
An unorganized and inefficient payroll process is a recipe for eventual disaster. If you rely on paper processes, both manual data entries and a massive number of spreadsheets can yield more errors than most people realize.
Just the words "IRS audit" are enough to make most people roll their eyes or groan in pure agony. More specifically, business owners in particular often fear being audited by the IRS. That said, there are numerous steps people can take when they are eager to mitigate the risks of being audited.
If you have a company, you need an Employee Identification Number. There are various ways to apply for an EIN, including online at no cost. The online federal EIN application is in a question-and-answer format, with embedded help topics and hyperlinked keywords and definitions. It must be completed in one session — you won't be able to save it and return later.
Regardless of whether your first payroll involves a few employees or many, the goal is to execute payroll in an accurate and compliant manner. Here are some steps to help you manage your first payroll.
Intangible assets have long existed — rights such as copyrights, leases and government subsidies — but other electronic properties are gaining recognition, too. Intangibles run a wide spectrum, from patents and trademarks to less visible concepts like culture and networking or to even more latent infrastructure, such as industry protocols, standards or trusts.
So, you just found out your business is getting audited. Don't panic! You can get through it. The first thing to check is whether it's a real audit. The IRS emphasizes that it always initiates audits by mail. If you get a phone call or an email, it's a fraud.
When setting up your business, you will need to establish your company under one of many business structures. The business structure you choose will influence everything. From your day-to-day operations and taxes to how much of your personal assets are at risk and everything in between, it's important to consider structures with a reasonable balance of legal protections and benefits.
Are you worried about the likelihood of your business being audited by the IRS? If so, there are a lot of preventive red flags that you can keep an eye out for when looking to protect your business from being the focus of an audit.
S corporations allow the business to pass corporate income, losses, deductions and credits through to their shareholders for federal tax purposes. But with those great advantages come many rules, including those related to compensation. Shareholder-employees may think there's no practical difference between income as an owner and income as an employee, but they'd be wrong. The IRS demands that shareholder-employees define both income streams clearly, but it can be vague about how to do this.
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