Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
COVID -19: Significant Payroll and Self-Employment Tax Relief
COVID -19: Significant Payroll and Self-Employment Tax Relief If you are in business for yourself—say, as a corporation or self-employed—payroll taxes and self-employment taxes are likely two of your biggest tax burdens. Here’s some possible good news: Congress decided to give you significant relief from these taxes due to the COVID-19 pandemic. We’ll tell you what relief options are available [...]
Section 83(b): Restricted Stock Awards and Your Taxes
Section 83(b): Restricted Stock Awards and Your Taxes When you receive restricted stock awards, you need to decide whether you want to make a Section 83(b) tax election. Without the Section 83(b) Election With no Section 83(b) election, you must recognize taxable compensation income from your restricted stock award in the year the restriction causing the substantial risk of forfeiture [...]
Can You Employ Your Under 16 Years Old Child?
Can You Employ Your Child For Your Business? When you employ your children to work in your business, make sure that you comply with both the IRS and the Department of Labor. Labor Law Here’s what the Department of Labor has to say in its plain English explanation about a parent hiring his or her child: The Fair Labor Standards [...]
Know About This Employer-Issued Non-Qualified Stock Options
Know About This Employer-Issued Non-Qualified Stock Options You or your spouse may have the opportunity to obtain non-qualified stock options. Or you may have your corporation issue non-qualified stock options to its employees and independent contractors. In both cases, you will want to know how these options work. When you exercise a non-qualified stock option, the bargain element (the difference [...]
Avoid Gift Tax: Use the Tuition and Medical Strategy
Avoid Gift Tax: Use the Tuition and Medical Strategy If you or a well-off relative are facing the gift and estate tax, here’s a planning opportunity often overlooked: pay tuition and medical expenses for loved ones. Such payments, structured correctly, do not represent gifts. The monies spent by you on the qualified medical and tuition payments reduce your net worth [...]
Answers to Questions About the Secure Act
Answers to Questions About the Secure Act The Setting Every Community Up for Retirement Enhancement (SECURE) Act changed the landscape for retirement and savings planning. Here are eight important reminders about this new law: You can’t use contributions made in 2020 but applied to 2019 for any SECURE Act provisions that apply to contributions made after December 31, 2019. If [...]