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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.
How long do you have to keep records? There's no one answer. However, we've summarized some of the most common federal laws relevant to employment record keeping. Note that applicability may vary by employer size.
One effect of the Covid-19 pandemic is that many businesses are struggling with cash flow. This translates to an accounts receivable problem for the companies they owe money to. Knowing what your business can do lies in having good strategies in place to follow up with clients who are not paying their bills.
Many businesses are facing the financial effects of the Covid-19 pandemic. The loss of clients and decreased cash flow have forced businesses to make some hard choices that involve restructuring debt either in- or outside of bankruptcy or simply closing the doors.
In Notice 2020-54, the IRS explains how employers must report qualified leave given under the Families First Coronavirus Response Act (FFCRA).
When a company is involved in an M&A, either as a buyer or a target, analyzing the prospective transaction to determine if it makes sense for shareholders is critical. Knowing the basics of when or if a deal makes practical and financial sense is helpful, but seeking help from a qualified professional to analyze the pros and cons in depth is a must.
Unless you're part of a financial department, you may have received little or no formal training in how to develop a budget forecast, track expenses or make midyear adjustments. You've been handed a spreadsheet or finance report, and you're expected to know what to do with it.
Each type of business entity has pros and cons as well as tax consequences. This article offers some basics about two of the most popular business formats: sole proprietorships and partnerships.
Bonuses are a form of variable pay that are used to inspire employee loyalty or reward performance, and it's essential to know about the different kinds.
Budget forecasting is an essential part of good financial management, yet many companies rely on their once-a-year projections throughout the year. Although that strategy may have worked in the past, it’s no longer effective. Things are moving too fast: Technology, government regulations and artificial intelligence are only some of the disruptors businesses are subject to on a regular basis.
As noted in a September 24 statement, the Department of Labor has updated "the earnings thresholds necessary to exempt executive, administrative or professional employees from the FLSA's minimum wage and overtime pay requirements, and allows employers to count a portion of certain bonuses (and commissions) towards meeting the salary level." Nondiscretionary bonuses and incentive payments (including commissions) may be able to satisfy up to 10% of the salary level.
An employee put in years of service with your company, or is an exemplary worker, but circumstances now lead to his or her departure. You have agreed to pay the employee severance, but you want him or her to receive the full amount, with no taxes taken out. To accomplish this, you will need to do a "gross-up."
A headcount is the total number of people employed by an organization, including full-time and part-time employees.
In general, businesses need an EIN. There are various ways to apply for one, but the IRS is happy to let you know that you may now apply online. It's a free service.
You may have a good reason to change your payday, but before you make your move, be sure to take into account various rules and implications.
The Financial Standards Accounting Board has issued an Accounting Standards Update (ASU) aimed at improving financial reporting about leasing transactions. The ASU affects all companies and organizations that lease such assets as real estate, airplanes and manufacturing equipment.
The TCJA, which was passed late in 2017, runs some 70,000 words, and experts continue to pore over its provisions. Of particular interest to businesses are the provisions that affect the wide world of M&A. Any business that thinks an M&A may be in its future should know what's changed thanks to the TCJA.
Accounting Standards Update No. 2014-09, issued by the Financial Accounting Standards Board (FASB), establishes principles to report useful information to users of financial statements about the nature, timing and uncertainty of revenue from contracts with customers.
Do you have employees who live in one state and work in another? You may run into this if:
Crowdfunding is the process of getting a large crowd of people to each pay a small amount of money to invest in an idea or product, typically with a tangible incentive and the promise that when the idea comes to fruition, they will get first access to it.
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