Suppose you’ve carved a subsidiary out of your main operation, so now you officially own two business entities. Potential problem: If certain employees work for both companies, you could be paying more employment tax than you’re required to under the law. Strategy: Assign a “common paymaster” to handle employment taxes.
The new VOW to Hire Heroes Act, provides enhanced tax credits to employers that hire military veterans. Strategy: Adjust your hiring policies to accommodate vets. The changes could be worth thousands of dollars in tax savings to your company.
Q. If I buy a $100 raffle ticket for charity and don’t win, can I deduct the full amount?
Your business is part of your legacy, so you probably don’t want the company’s building to be sold and bulldozed right after you die. However, your heirs may be strapped for cash if they have to pay federal estate tax on the value of the inherited business. Strategy: Point out the special use valuation break.
The debate over the constitutionality of the massive health care legislation enacted in 2010 continues. It’s not certain if most of the provisions will kick in as scheduled … or ever. Strategy: Take a second look at Health Savings Accounts (HSAs). They may be a tax-smart way for you to handle your medical expenses.
Just when it looked darkest, Congress revived a tax break for employees, at least for the short term. New legislation enacted late in 2011 temporarily extends the “payroll tax holiday” for two more months. And Congress is already working on an extension for the remainder of 2012.
Generally, a calendar-year company deducts employee bonuses in the year they are paid, while the bonuses are taxable to the employees in the year received. But there’s a special rule for accrual-basis companies.
The cost of everything else seems to be going up … why not Medicare Part B premiums? The government recently announced a modest increase in the monthly premiums for 2012. But it amounts to a reduction for senior citizens who enrolled in Part B in 2010 and 2011.
It’s a global economy. Even small business operations have established relationships with clients and vendors in foreign countries. So you may find yourself globe-trotting on behalf of your company. Here are the tax “ins and outs” for foreign business travel.
Q. I’ve been informed that I’m in the doughnut hole for Medicare. Wasn’t this eliminated?