Tax

Employers: Beware of a harsh payroll tax penalty

If federal income tax and employment taxes (including Social Security) are withheld from employees’ paychecks and not handed over to the IRS, a harsh penalty can be imposed. To make matters worse, the penalty can be assessed personally against a “responsible individual.” If a business makes payroll tax payments late, there are escalating penalties. And […]

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Hire your children this summer: Everyone wins

If you’re a business owner and you hire your children (or grandchildren) this summer, you can obtain tax breaks and other nontax benefits. The kids can gain on-the-job experience, save for college and learn how to manage money. And you may be able to: Shift your high-taxed income into tax-free or low-taxed income, Realize payroll […]

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Tax Planning Opportunity for Small Manufacturers

The TCJA provides small manufacturers exemptions from the use of full absorption method of inventory costing (§471) and uniform capitalization (§263A).  A small manufacturer is any manufacturer with average annual gross receipts for the three prior tax years under $25 million. Inventory Costing Under TCJA Qualifying taxpayers can elect out of §263A by following the […]

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