Keeping up with the complexity of the Internal Revenue Code is challenging for an individual and even more so for a business owner. But, if you’re someone who handles both roles – an owner-employee – the difficulty level is particularly high. Nonetheless, it’s important to stay up to speed on your specific obligations. As you’re [...]
January 16 Individual taxpayers’ final 2017 estimated tax payment is due. January 31 File 2017 Forms W-2 (“Wage and Tax Statement”) with the SSA and provide copies to your employees. File 2017 Forms 1099-MISC (“Miscellaneous Income”) reporting nonemployee compensation payments in box 7 with the IRS and provide copies to recipients. Most employers must file [...]
We live in an increasingly specialized society. As such, there’s a growing subset of the workforce with distinctive skill sets that can perform high-quality services. Through independent contractor relationships, companies are able to access these services without the long-term entanglements of traditional employment. And yet, risk remains. Classifying a worker as an independent contractor frees [...]
Many private business owners elect to incorporate, turning their companies into C corporations. But, at some point, you may consider converting to an S corporation. This isn’t necessarily a bad idea, but it’s important to know the ramifications involved. SIMILARITIES AND DIFFERENCES S and C corporations use many of the same record-keeping practices. Both [...]
A royal flush can be quite a rush. But the IRS casts a wide net when defining gambling income. It includes winnings from casinos, horse races, lotteries and raffles, as well as any cash or prizes (appraised at fair market value) from contests. If you participate in any of these activities, you must report such [...]
Bartering may seem like something that happened only in ancient times, but the practice is still common today. And the general definition remains the same: the exchange of goods and services without the exchange of money. Because, in a typical barter transaction, no cash exchanges hands, it’s easy to forget about taxes. But, as one [...]