Facebook Linkedin Twitter

Payroll Tax

Corporate business owners: Is your salary reasonable in the eyes of the IRS?

C Corporation, Compensation, Corporate Business Owners: Is Your Salary Reasonable In The Eyes Of The IRS, Corporations, S Corporation, Tax Return, Tax-Deductible Business Expenses /

Determining “reasonable compensation” is a critical issue for owners of C corporations and S corporations. If the IRS believes an owner’s compensation is unreasonably high or low, it may disallow certain deductions or reclassify payments, potentially leading to penalties, back taxes and interest. But by proactively following certain steps, owners can help ensure their compensation is seen […]

Corporate business owners: Is your salary reasonable in the eyes of the IRS? Read More »

More parents may owe “nanny tax” this year, due to COVID-19

Employees, Employment Tax, Federal Income Tax, FICA, Form W-4, Independent Contractors, Nanny Tax /

In the COVID-19 era, many parents are hiring nannies and babysitters because their daycare centers and summer camps have closed. This may result in federal “nanny tax” obligations. Keep in mind that the nanny tax may apply to all household workers, including housekeepers, babysitters, gardeners, or others who aren’t independent contractors. If you employ someone

More parents may owe “nanny tax” this year, due to COVID-19 Read More »

How to avoid getting hit with payroll tax penalties

Employment Tax, Federal Income Tax, Federal Taxes, Individual Income Tax, Payroll Service, Payroll Tax, Small Business, State Tax, Tax Cuts and Job Acts (TCJA) /

For small businesses, managing payroll can be one of the most arduous tasks. Adding to the burden earlier this year was adjusting income tax withholding based on the new tables issued by the IRS. (Those tables account for changes under the Tax Cuts and Jobs Act.) But it’s crucial not only to withhold the appropriate

How to avoid getting hit with payroll tax penalties Read More »