If you’re a business owner and have employees, you are aware that there is a mandatory requirement to timely pay employment taxes. But what exactly are employment taxes? Employment taxes are withheld federal income tax, withheld social security and Medicare taxes, and withheld Railroad Retirement taxes. These taxes are referred to as trust fund taxes because you (the employer) hold [...]

You’ve likely heard the term nexus mentioned, but do you know what it really means? While the term nexus relates to several different matters, herein, we’re going to focus on nexus as it relates to sales tax. In brief, sales tax nexus means that if an out of state business has a sufficient physical presence in a state, then that [...]

Under the new tax law, additional restrictions are being implemented for meals and entertainment deductions. Code Section 274(e) states that meals and entertainment expenses incurred or paid after December 31, 2017 will not be deductible with a few exceptions. Specifically, “expenses for recreation, social, or similar activities primarily for the benefit of the taxpayer’s employees, other than highly compensated employees” [...]

Tax reform (Public Law 115-97) includes winners and losers. Employers who for their convenience provided business meals for their employees are losers—50 percent losers to start and then total losers later. Meal costs that were 100 percent deductible for perhaps a half century or more are now limited to 50 percent, and that 50 percent becomes a big fat zero [...]

Here’s a story about Ronnie Craft, who lost his court case but whose story brings up an interesting point when it comes to tax planning. Ronnie Craft owned 50 percent of an S corporation. Both he and the other owner took salaries of $50,000 a year from the S corporation. The corporation adopted a resolution requiring Ronnie to pay for [...]