Recent News & Blog / Business Tax
5 tax breaks on the table: What business owners should know about the latest proposals
A bill in Congress — dubbed The One, Big, Beautiful Bill — could significantly reshape several federal business tax breaks. While the proposed legislation is still under debate, it’s already sparking attention across business communities. Here’s a look at the current rules and proposed changes for five key tax provisions and what they could mean for your business.
Planning a summer business trip? Turn travel into tax deductions
If you or your employees are heading out of town for business this summer, it’s important to understand the travel deduction tax rules. If a trip includes both business and personal time, only expenses related to the business portion (such as meals and lodging for business days) are deductible. Contact our tax advisors for guidance on what’s deductible in your situation.
Hiring independent contractors? Make sure they’re properly classified
Many businesses turn to independent contractors to help manage costs, especially during times of staffing shortages and inflation. If you’re among them, ensuring these workers are properly classified for federal tax purposes is crucial. Misclassifying employees as independent contractors can result in expensive consequences such as audits, back taxes, penalties and even lawsuits. Our business advisors can also consult with you on this topic.
Can you turn business losses into tax relief?
Having a tough year? Find out how net operating losses (NOL) can convert today’s setbacks into brighter tax savings in the future. Also, read more about the changes and limits on the Tax Cuts and Jobs Act (TCJA). Contact our business tax advisors with questions.
Determine a reasonable salary for a corporate business owner
Are you a corporate business owner? Make sure your compensation passes IRS scrutiny! Determining “reasonable compensation” is a critical issue for owners of C corporations and S corporations. If the IRS believes an owner’s compensation is unreasonably high or low, it may disallow certain deductions or reclassify payments, potentially leading to penalties, back taxes and interest. Contact our business advisors for guidance on setting or reviewing your compensation.
An education plan can pay off for your employees — and your business
Your business can set up a Sec. 127 educational assistance plan to give each eligible employee up to $5,250 a year, free from federal income tax and payroll tax. The plan must meet certain requirements. Contact our tax advisors to learn more.
Simple retirement savings options for your small business
If you’re thinking about setting up a retirement plan for yourself and your employees, but you’re worried about the financial commitment and administrative burdens involved, there are a couple of options to consider. Let’s take a look at a “simplified employee pension” (SEP) or a “savings incentive match plan for employees” (SIMPLE).
Tax document retention guidelines for small businesses
You may have breathed a sigh of relief after filing your income tax return (or requesting an extension). But if your office is strewn with reams of paper consisting of years’ worth of tax returns, receipts, canceled checks and other financial records (or your computer desktop is filled with a multitude of digital tax-related files), you probably want to get rid of what you can. Follow these retention guidelines as you clean up.
Small business alert: Watch out for the 100% penalty
Some tax sins are worse than others. But not paying income and employment taxes that have been withheld from employees’ paychecks is the worst. In these cases, the IRS can assess the trust fund recovery penalty. It’s called the 100% penalty because the entire unpaid tax amount can be assessed personally against a responsible person or several persons, including a shareholder, director, officer, partner or employee of a business. Contact our business tax advisors at SEK with payroll tax questions.
6 essential tips for small business payroll tax compliance
Staying compliant with payroll tax laws is crucial for small businesses. Mistakes can lead to fines, strained employee relationships and legal consequences. Here are 6 quick tips. Contact SEK's business tax advisors with questions. We can help you select the right system, calculate employee withholding, navigate multi-state filing requirements and more.