The IRS has very strict rules about how a business should handle employee reimbursements.
If you make the payment under an accountable plan
, deduct it in the category of the expense paid. If you make the payment under a non-accountable plan
, deduct it as wages and include it in the employee’s Form W-2.
Avoiding paying unnecessary taxes on employee reimbursements involves keeping detailed and accurate records separating out how much your business spends on different types of expenses. Continue reading
Perhaps you haven't received your canceled checks back from your bank in years, or perhaps your bank has even stopped providing you with printed images of those checks with your bank statement, like mine has - and I must confess I can't even remember when they stopped doing that with our business account - but I do know that it's been several years.
So what happens when during an IRS Audit you are asked to produce cancelled checks to substantiate the payment of an expense? Continue reading
Weekly wrap-up of news and information from around the web – there’s so much information out there that it’s difficult (at best) to keep up! I’ve added a WordPress plug-in that grabs information from my Twitter stream to help me (and hopefully you as well) keep up with everything. Look for the Weekly Wrap-Up: News You Can Use every Friday. I'll try to be consistent and organize the information into the same categories each week.
See what caught my attention this week in these topics: Accounting & Taxes, eBooks/Webinars/Videos, Payroll/Certified Payroll/Prevailing Wage, QuickBooks, Small Business/Organization/Productivity, Construction, and Social Media/Marketing/Website Design. Continue reading
Failing to remit payroll taxes is a big mistake! Sometimes a business owner will let the payment of payroll taxes slide in favor of paying other vendors OR perhaps will make a partial payment, thinking it will be ok -- not a good idea ----- always remit the full amount of your payroll taxes before paying other bills. Here are a couple of examples why. Continue reading
Is your CPA REALLY the right person to be completing your tax return? Did you know that there are different educational requirements for different types of tax preparers? For example, attorneys, certified public accountants, and enrolled agents will not have to undergo competency testing or obtain CPE credits for federal tax law topics under new IRS regulations?
Who does your taxes? Do they know tax law? This guest blog post by Bruce McFarland of L & R Tax Preparation will provide information about new rules and regulations that the IRS is mandating for paid tax preparers. Continue reading
The certified payroll report that your company submits to a general contractor, project owner, or contract administrator should contain information about your W-2 employees, the ones that work directly for you, are paid via payroll checks issued by your company and who you provide a W-2 for wages earned at the end of the year. When you enter into a formal contract for a portion of the prevailing wage/government funded construction project with a subcontractor, the subcontractor will submit a certified payroll report from his company to yours, listing their employees, the work classifications they fell under, hours worked on the project, wages, taxes, deductions, etc. Continue reading
Top 10 Thursday features 10 of the most interesting articles that I found the previous week. This week there is a lot of good news for contractors. Continue reading
The Small Business Jobs Act of 2010 removed cell phones from the definition of listed property, a category under tax law that normally requires taxpayers to perform additional recordkeeping Continue reading
This payroll tip discusses being prepared for Wage & Hour and IRS Audits - what records have to be kept, how long you need to keep them, etc. Continue reading
Top 10 Tuesday - tips from around the web include what to do when QuickBooks is not responding, IRS re-examines unpaid employment taxes, check fraud, and more Continue reading
The Internal Revenue Service advised truckers and other owners of heavy highway vehicles that their next federal highway use tax return, usually due Aug. 31, will instead be due on Nov. 30, 2011. Continue reading
Recent legislation added a new requirement for employers to report, in addition to other information, the date that an employee first performs services for pay. The "first day of work" law went into effect June 8, 2011. Continue reading
The IRS offers initial information and guidance to employers about 2011 W-2 reporting of the cost of health insurance coverage they sponsor for employees. Source: SSA/IRS Reporter – Summer 2011 Newsletter Continue reading
The office of Federal, State and Local Governments will hold a free, one-hour webinar on July 14, 2011, to discuss the required 3 percent income tax withholding on certain payments made by government entities, to take effect in 2013. Continue reading
Guest blogger Jo Ellen Peters discussed who the IRS may hold liable for 941 payments. A must read for anyone who signs a 941. Continue reading