It’s critical for an enterprise periodically to review the status of its workers and see if they are properly classified. An enterprise must withhold federal income tax, social security taxes, and federal unemployment taxes on wages it pays workers who are employees. It also may have to provide them with the same fringe benefits and retirement plan coverage available to its other employees. There may be state tax obligations as well. By contrast, these responsibilities don’t apply for workers who are independent contractors. The business simply cuts them a check for their services and sends them a form 1099-misc.
As business owners, business consultants and certified public accountants for over 35 years, we have witnessed fraud firsthand and have seen fraud in approximately 20%-30% of businesses. Many of these fraud cases were committed by a trusted employee.
Two-thirds of workers want to work until age 65 or later, but deteriorating health and mental decline can make this difficult. This is especially true for jobs that involve physical labor, but also for white-collar jobs where fluid cognitive abilities are important.
Read full post | Posted by on 04.20.16
Builders have available to them a little known deduction called the Domestic Manufacturing Deduction or called by its code section “The 199 Deduction”. The deduction is available to builders who have profits and payroll.
The 199 deduction is allowed to all taxpayers—individuals (shown on Form 1040 line 35), and C corporations (shown on Form 1120 line 25). The 199 deduction for partnerships and S corporations (reported on Form K-1 in box 13) flows through to the owner’s individual tax return.
If you use your home for business, you may be able to deduct expenses for the business use of your home. If you qualify, you can claim the deduction whether you rent or own your home. You may use either the simplified method or the regular method to claim your deduction. Here are six tips that you should know about the home office deduction:
Read full post | Posted by on 04.04.16