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Tax Blog

Tax Cuts and Jobs Act: What you need to know for 2019

As we kick off the 2019 filing season under the Tax Cuts and Jobs Act (TCJA), it’s hard to say if you’ll see an increase or decrease in your taxes, or if your tax return will become simplified or more complex. But what we know for sure is, ALL taxpayers will be affected by the new legislation! The TCJA has provided new opportunities for tax savings and tax planning for you and your business. Below is a brief summary of some provisions in the Act. In addition, the IRS has interpreted several provisions of the tax bill, which may provide...


1st Quarter 2019 Due Dates

Here’s the upcoming due dates for the first quarter of 2019. January 15 Individuals Fourth quarter 2018 estimated tax payments are due (final installment). January 31 Employers Give your employees their copies of Form W-2 for 2018. File Form W-3 with Copy A of all Forms W-2, regardless of whether you file these forms by paper or electronically. The SSA encourages all employers to e-file. Don’t e-file the same returns which were paper filed. File Form 941 for 4th quarter 2018, or annual Form 944. File Form 940 for 2018. File Form 1096 with Copy A of Forms 1099-MISC reporting...


Tis the Season of Gifting: New IRS rules for rewarding your customers and employees

Whether you gift to employees for their hard work or to your customers as a thank you for their business, holiday gifting is a traditional way to spread cheer and recognize the people who are important to your business. Only certain types of gifts are deductible, so make sure you follow the rules to avoid a Grinch-like spoiler come tax filing season. Employee Gifts: The IRS does NOT recognize the traditional ham, turkey, or other item of nominal value given at Christmas or other holidays as taxable income, but rather as a de minimis fringe benefit. However, if an employer...


Upcoming IRS Changes for 2019

Along with the new Trump tax laws, the IRS has been steadily working on changes – they’re sometimes hard to keep track of so here’s our latest list of upcoming changes to pay attention to. IRS Delays Changes to Form W-4 Following feedback from the payroll and tax communities, the Treasury Department and the IRS have decided to implement the new version of the Form W-4, Employee’s Withholding Allowance Certificate, in 2020, rather than 2019. The 2019 version of the Form W-4 will be similar to the current 2018 version. While the new form is intended to assist the taxpayer...


Own an S-Corp? Are you paying yourself correctly?

If you operate your business as an S corporation and pay yourself on a 1099-MISC, then you’re possibly in violation of tax law, which can subject you to substantial tax liabilities and penalties. The law requires you to pay yourself a salary for the work you do for the corporation. Your salary should be reasonable based upon your position, hours worked, and duties performed. It should also be equivalent to executives or employees in similar businesses. The salary shouldn’t be in the form of distributions or 1099 payments. The payments should be run through payroll to ensure the proper income...


4th Quarter 2018 Due Dates

Here are the upcoming tax due dates for the 4th quarter of 2018! October 1 Deadline for businesses to establish a new SIMPLE retirement plan for 2018 Deadline for businesses to provide written notice to employees related to Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) plans that begin on January 1, 2019 October 15 Deadline for individuals to file their 2017 1040 if on an extension 2017 Form 1120 due for Calendar-year C-Corps if on an extension October 31 Form 941 for 3rd Quarter 2018 due for Employers November Employers request Form W-4s from employees whose withholding allowances will be...


Postcard-size Form 1040 is coming!

The Internal Revenue Service and the Treasury Department unveiled a draft version of the postcard-size Form 1040 that was promised from last year’s tax reform effort. For the 2019 tax season, the shorter Form 1040 will replace current Forms 1040, 1040A and 1040EZ so that all 150 million taxpayers can use the same form. The new form uses a “building block” approach, in which the tax return is reduced to a simple form and supplemented with additional schedules if needed. Taxpayers with straightforward tax situations will only need to file this new 1040 with no additional schedules. Padgett was represented...


Are Your Earnings Subject to Self-Employment Tax?

Self-employed persons are subject to a special tax to fund social security benefits under the SelfEmployment Contributions Act. All self-employed persons, regardless of age, must file Schedule SE to compute the tax. For sole proprietors, SE tax is assessed on net earnings from self-employment, which is defined as gross income less allowable deductions from a taxpayer’s trade or business. Trade or Business Requirement. To be engaged in a trade or business generally requires your continuous and regular involvement in the activity and the intent of making a profit. Thus, earned income received from an isolated or sporadic activity that differs...


Some Tips on Small Business Financing

Financing can be one of the biggest obstacles small business owners face. Proper financing can help your business survive, grow or expand and increase profits. The alternative can be as severe as business failure. A small business’ primary use of a commercial finance company is to borrow money for the purchase of inventory and equipment, and to meet seasonal cash flow needs. A trustworthy financier can be an asset to any small business. While right now may be the perfect time to apply for a loan to purchase more equipment, finding a good lender may prove to be challenging. When...


Networking for Small Business

When it comes to any small business, networking is the key to success. With the explosion of online marketing and social media, business owners can easily replace face-to-face networking with more time online. Although online is still important for business growth, person-to-person networking will build solid relationships that every entrepreneur can benefit from. Many business owners avoid networking because they’re tired of hearing the same sales pitch, they don’t see the benefit, or they don’t know where to find networking events. If you find yourself falling into one of the above categories, there is no need to worry. Below are...