CONTACT US TODAY to book your FREE consultation!
It’s almost here…
It’s almost here…the filing deadline for taxpayers who requested an extension to file their 2018 tax return. This year’s deadline is Tues-day, October 15.
Even though time before the extension deadline is dwindling, there’s still time for tax-payers to file a complete and accurate return. Taxpayers should remember they don’t have to wait until October 15 to file. They can file whenever they are ready.
With the end of the year fast approaching… Here are a few things to remember…
This Tax Withholding Estimator works for most taxpayers. Those with more complex situations may need to use Publication 505, Tax Withholding and Estimated Tax, instead of the Tax Withholding Estimator. This includes taxpayers who owe alternative minimum tax or certain other taxes and people with long-term capital gains or qualified dividends.
Gifts to employees
Bonuses are entirely voluntary, but if you choose to give them to your employees, here are some guidelines.
Non-cash gifts:
Food items fall under special, and very favorable, rules. They are not counted as income to the employee, but the cost is deductible to your business. Non-cash, non-food gifts to employees with a value of more than $25.00 are considered income to the employee and will have to go on his or her Form W-2 at the end of the year. While they are still deductible for the business, they will require withholding for the employee, and you will have to pay the employer match.
Cash gifts:
Any gift in cash, by check, or any cash equivalent has to go through your payroll system. There are no exceptions.
If you’d like to give an employee a check for an even dollar amount, call your payroll service and ask them to do a “net check.” Their software will figure out the payroll taxes and give you a paycheck where the final amount is the even number you specify.
Gifts to non-employees:
Your business is definitely allowed to give gifts to customers, clients, referral sources, or vendors, but you can only deduct the first $25.00 per person to whom a gift is given. Unlike the rules for employee gifts, there is no special deal for food items. However, since this is a “per person” rule, if you sent a food gift costing $100 to a customer with a staff of 4 or more to share, you would be able to deduct the full amount of the gift.
Did you know RSV-CPA offers the following Services?
- Tax Services—Corporate & Individual Tax Returns
- Accounting—Bookkeeping, Financial Statements & Reporting
- Consulting—Business
- Quickbooks— & Training
- And much more!
OUR FIRM:
Rick S. Vourganas—CPA