What the self-employed need to know about employment taxes
In addition to income tax, you must pay Social Security and Medicare taxes on earned income, such as salary and self-employment income. The 12.4% Social Security tax applies only up to the Social Security wage base of $118,500 for 2016. All earned income is subject to the 2.9% Medicare tax.
3 ways to get started on next year’s budget
As the year winds down, business owners have a lot to think about. One item that you should keep top of mind is next year’s budget. A well-conceived budget can go a long way toward keeping expenses in line and cash flow strong.
Is your executive compensation reasonable?
Corporations can’t deduct dividend payments, but they can deduct executive compensation. To prevent abuse of this rule, the IRS requires exec comp to be “reasonable” – something even tax authorities have trouble defining.
The IRS can reclassify S corporation distributions as wages
If you run your business as an S corporation, you’re probably both a shareholder and an employee. As such, the corporation pays you a salary that reflects the work you do for the business — and you (and your company) must remit payroll tax on some or all of your wages.
Lower gas costs = lower business driving tax deductions
This year, the optional standard mileage rate used to calculate the deductible costs of operating an automobile for business went down. The reason? Compared with last year, the cost of driving is less because gas prices are lower.
Will your business have a net operating loss? Make the most of it
When the deductible expenses of a business exceed its income, a net operating loss (NOL) generally occurs. If you’re planning ahead or filing your income tax return after an extension request and you find that your business has a qualifying NOL, there’s some good news: The loss may generate some tax benefits.
How many employees does your business have for ACA purposes?
It seems like a simple question: How many full-time workers does your business employ? But, when it comes to the Affordable Care Act (ACA), the answer can be complicated.
Keep Family Businesses Going for Generations
According to Forbes.com, 80-90% of all firms across the globe and the top 500 largest family-owned firms generate a combined annual revenue of $6.5 trillion which totals an economy only smaller than the U.S. and China.
Put Social Media Networking site to Work for your Family Business
Traditional media outlets such as newspapers, radio and television have long served the purpose of delivering one-way messages, like your company’s advertising. Social media, by contrast, uses Web-based platforms to not only deliver your message, but to allow the recipient to participate.
Court: No Pay for Employees Monitoring Electronic Devices during Lunch
Court: No Pay for Employees Monitoring Electronic Devices during Lunch Return to Blog A federal district court recently sided with an employer in a dispute regarding whether employees had to be compensated for on-call time, activities before and after their shifts, and work during lunch breaks. Facts of the Case In Brand v. Comcast Corp., […]