The Latest on Payroll Tax Deferral

If you have employees, you must withhold their 6.2 percent share of the Social Security tax from their wages up to an annual wage ceiling ($137,700 for 2020). You must pay the money to the IRS along with your matching 6.2 percent employer share of the tax. But under...

Don’t Let the IRS Set Your S Corporation Salary

You likely formed an S corporation to save on self-employment taxes. If so, is your S corporation salary nonexistent? too low? too high? just right? Getting the S corporation salary right is important. First, if it’s too low and you get caught by the IRS, you will pay...

Proving Travel Expenses after Tax Reform

As you likely know by now, your travel meals continue under tax reform as tax-deductible meals subject to the 50 percent cut. And tax reform did not change the rules that apply to your other travel expense deductions.   One beauty of being in business for yourself is...

Avoid 1099 Headaches: Three Strategies

The easiest way to avoid the headaches and potential penalties caused by issuing 1099s to independent contractors is to structure your activities to: (1) minimize the number you have to issue, and (2) prepare in advance if you do have to issue them  Strategy 1: Select...