Posts Tagged ‘Taxes’
Income Tax vs. Payroll Tax: The Difference for US Payroll
Not all taxes are created equal—in terms of responsibilities, at least. When we see the words “income tax,” we may immediately associate them with our personal taxes we file each year. Or we even think of income taxes for businesses. But what really are payroll taxes? And are they really that different from the income taxes businesses…
Read MoreBusinesses Should Review Depreciation Deductions Rules
Businesses should know the tax rules for deducting depreciation on certain property. This deduction can benefit eligible business taxpayers. The Tax Cuts and Jobs Act made changes to the rules around depreciation that will affect many businesses. First off, businesses should remember they can generally depreciate tangible property, except land. Tangible property includes: Buildings Machinery…
Read MoreHow to Handle Sales Tax
If you sell goods or services, you may have to collect sales tax from buyers or clients. But determining the amount to collect isn’t always easy. Each taxing authority sets its own rates and rules for when sales tax applies. Here’s a quick guide to how to handle sales tax for your business. When Do…
Read MoreAmericans Abroad on Self-Employment Taxes on Foreign Income
How does self-employment tax work for those Americans, who live abroad, travel the world and work for themselves? Well, you still have to pay US taxes on foreign income if you are a freelancer, independent contractor, digital nomad or entrepreneur abroad. Yes, US tax laws apply no matter where in the world you live and…
Read MoreHow Long Should I Keep My Tax Records?
Now that you are filing away your business or personal tax records for the year, you may be wondering just how long you need to keep those records. After all, your filing cabinets and storage boxes can only hold so much stuff, right? The IRS offers some specific guidance on this subject. Here’s a look…
Read MoreTax Reform Ideas to Reflect How Small Businesses Operate in the Modern World
The Tax Cuts and Jobs Act brought several improvements for small businesses, most notably, favorable accounting methods such as use of the cash method and not having to deal with the Unicap rules. The AICPA Tax Section recently posted a position paper noting 13 more changes that would further help modernize the Code to reflect how small businesses operate.…
Read MorePayroll Tax vs. Income Tax: How They Work for Canadian Payroll
Payroll tax and income tax. These two short, simple words are the source of so many payroll questions (and confusion). It’s really no wonder because as laypeople, we hear or read “income tax”—we think personal income tax or possibly business income tax. Payroll taxes, on the other hand, are often an unknown and rather eye-opening…
Read MoreEmployees’ Fringe Benefits After Tax Reform
Tax reform made a lot of changes, some of which impacted employees’ fringe benefits. This article reviews the most frequently encountered fringe benefits, including those that were and were not impacted by tax changes. These changes can affect both a business’s bottom line and its employees’ deductions. Benefits Impacted by Tax Reform Qualified Transportation Fringe…
Read MoreWhat is the Schedule K-1 Tax Form for Businesses?
Are you a partner in a business? Do you receive distributions from an S corporation? If you answered “yes” to either of these questions, then the business entity you participate in should have provided you with a Schedule K-1 tax form. But just what is a Schedule K-1 and how does it work? Reporting Pass-through…
Read MoreWhy Did I Receive a Payroll Tax Notice?
Letters from the IRS are never fun. What makes it worse is not knowing why you got one in the first place. When it comes to payroll tax payments and potential fees, you want to get to the heart of the issue ASAP. But first, take a deep breath… It’s likely that you missed a simple…
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