When is Self-Employment Tax Required for LLC Members?

It is common for limited liability company (LLC) members to claim that their distributive shares, after deducting compensation for services in the form of guaranteed payments, of LLC income are not subject to self-employment (SE) tax. Recently the IRS has been cracking down on these claims and has seen some success in court against LLC members who have underreported SE income.

California Out-of-State Voluntary Disclosure Program

Since the Supreme Court issued the Wayfair v South Dakota ruling, states across the country have been adjusting their sales and use tax collection rules to mirror South Dakota’s. This has created numerous compliance challenges for impacted companies because many are now required to charge, collect and remit sales tax on customers in various states. What makes this more difficult is while many states have similar regulations, there are some important differences that need to be adhered to in the calculation and collection of taxes.

TCJA Changes for 2018 Tax Filing

The Tax Cuts and Jobs Act (TCJA) has been the biggest shift in tax law in decades, and these changes mostly began in 2018. We are nearing 2018 tax filing season, and because of TCJA changes, this years tax season calls for special attention to policies that may have changed the amount businesses owe.

2019 First Quarter Deadlines

The first quarter of 2019 is coming up. Here are some of the important tax-related deadlines affecting businesses and employees. January 31 File 2018 Forms W-2, “Wage and Tax Statement,” with the Social Security Administration and provide copies to your … Continued

TCJA Changes Expense Deductibility

The Tax Cuts and Jobs Act (TCJA) has introduced changes in deductibles, reducing or eliminating many of them. With the end of the year approaching it is important that you review your business expenses and identify deductibility. You may also want to evaluate whether accelerating certain expenses into this year would be beneficial. The TCJA changes may also require, or make favorable, for you to change your expense or reimbursement policies.

The Benefits of Fringe Benefits

Fringe benefits are one of the best ways to attract and retain employees in the current tightening job market. Small businesses will especially draw in employees with benefits that are tax-free. Different benefits are taxed differently. Here is a look at various benefits and some of the tax policies that apply to them.

Cash or Accrual: Which is Best Post-Tax Reform?

The Tax Cuts and Jobs Act (TCJA) has introduced changes in business qualifications for using the cash-basis or accrual method of accounting. Usually, a small business will use the cash-basis method of accounting and then convert to the accrual-basis reporting as they grow. The switch in methods is usually to conform with U.S. Generally Accepted Accounting Principles (GAAP) and for federal tax purposes. With TCJA changes, this may no longer be the best route for every business.