We are now slowly moving towards 2016 and for many businesses, it will soon be time to think about the tax season. You will want to make sure you are doing your taxes right as well as prepare the documents that can yield tax reductions for your business. However, some tax deductions are lesser known and it’s common knowledge that many businesses have not tapped into them to get rebates when tax season arrives. Let’s take a look at these small business tax reductions that are too easily neglected:
myRA simply stands for my Retirement Account. It is a type of Individual Retirement Arrangement account that is administered by Comerica and the United States Treasury. The program aims to help more Americans save for retirement as a social security check may often not be sufficient to stand on its own. You can think of this account as a savings bond that will help you build a nest egg to financially secure yourselves during the years of retirement. This special account is also designed to provide you a decent return with little risk of losing what you put in.
One of the most effective ways to recover when you are feeling under the weather is to take a day off with a sick leave. This way, you can rest assured knowing that you will not miss out on a full day’s worth of pay; this peace of mind means a great deal for all wage earners. Currently, many employers in the United States are not required to grant their employees time off even when they are ill, and almost half of all the workers in the private sector lack access to this vital protection.
The Supreme Court of the United States, in a ruling on the Obergefell v. Hodges case, asserted that bans on same-sex couples from being able to marry is unconstitutional. This ruling now requires all states in the federation to allow the marriage of same-sex couples and to recognize same-sex marriages validly conducted in other jurisdictions. Prior to the ruling, 13 states had placed bans on same-sex marriages.
When it comes to filing taxes and getting the biggest return possible, there are a few unfortunate mistakes that a lot of people make – and before they know it, it’s too late to fix. However, it is never too late to start planning for next year’s tax season, and you can finish the current year strong if you take action soon enough. Here are a few different ways you can start maximizing your next tax return.
There are some obligations associated with running a small business. One of these is withholding payroll taxes. It is not a choice – it is a must-do if you want to stay on the right side of the law. Failure to withhold payroll taxes incurs fines and penalties for your business. According to the IRS Publication 15, if you fail to remit taxes, you will eventually have to pay the amount due plus an “additional tax.” This extra tax can range from 2 percent to 15 percent per month after a tax return is late.
Up until a few weeks ago, the Health Reimbursement Arrangement (HRA) was pretty much a non-issue for small businesses. However, there was a recent amendment introduced by a group of legislators entitled the Small Business Healthcare Relief Act. If it passes, small businesses would be allowed to reimburse employees for health insurance and medical expenses through an HRA. This article will talk about what exactly this bill has to offer, the bipartisan group who created it, and its current chances of passing.
Many employees appreciate the possibility to deposit pre-tax income for dependent care expenses and medical expenses as part of the benefits deal that they receive from their companies. An FSA or Flexible Spending Account gives your employees the ability to put aside a fixed amount of tax-free dollars from their salary to use for eligible health care benefits. Employees can also use their Flexible Spending Accounts for incurred health care expenses that insurance does not cover.