The employee retention credit (ERC), a credit created during COVID-19, ended on September 30, 2021 (December 31, 2021, for startups), but it’s still alive. How can that be? The reason: The deadline for submitting refund claims has not expired. Many employers claimed the credit, and a number of these are still pending. But there’s been […]
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To claim deductions and credits for the business expenses you incur, you must have certain records, including the amount of your outlays. Without good records, you can miss out on otherwise legitimate tax write-offs. The IRS has created certain tools you can use to avoid the need to retain receipts and other records of costs. […]
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Does it pay to be highly successful? From a personal and professional viewpoint, sure. You get satisfaction from helping your clients and customers and achieving milestones, as well as financial rewards. But from a tax viewpoint, success has its downside. Federal tax rules may penalize your efforts. Higher income tax rates aren’t the only things applied to owners who are very profitable. There are additional tax costs, all of which contribute to a significant tax bill. While taxes won’t dampen the drive for success, they do cut into what can be pocketed. Understand how these additional tax costs work. Added […]
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If your business has employees—including yourself—there are employment tax obligations imposed on the company (the “employer”) by the federal government. There are also state and local employment tax rules, such as paying unemployment taxes. The failure to follow the rules can result in penalties for the company, or even for you, personally, as the owner. The following are some problems related to federal employment taxes…and what you can or should do about them. Problem 1: Misclassifying workers to avoid employment taxes If workers are independent contractors, there are no employment tax responsibilities on the company. This is a substantial cost […]
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Can you believe that half of 2023 is over? The first half of the year has been a rocky one economically speaking. There were several interest rate hikes from the Federal Reserve, inflation moderated somewhat, and the debt ceiling crisis was averted. But according to the NFIB Survey for May 2023, optimism among small business owners continues to be well below the historic average. There are still supply chain disruptions and labor shortages. Where does your business stand? In order to do any tax planning, you need to assess your business performance for the first half of the year. Tax […]
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The National Taxpayers Union (NTU), the oldest taxpayer advocacy organization in the U.S., said in a letter to the House Small Business Committee in April that federal Tax Code unfairly burdens small businesses. Well, we know that! To ameliorate this, several measures have been proposed in Congress to change current federal tax rules in order to help small businesses. It’s impossible to know whether some or all will be enacted; it’s likely most if not all won’t become law. Still, it’s worthwhile to know what’s happening and to tell those who represent you in Congress what you support. Small Business […]
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