Being a business owner often means filling out forms, and the IRS and Department of Labor aren’t the only government entities you have to work with. The Equal Employment Opportunity Commission wants information too — from companies with more than 100 employees. (Lower thresholds may apply to government contractors.) Businesses must provide details about the […]

The Work Opportunity Tax Credit (WOTC) is a federal tax credit. In short, it encourages employers to hire workers who are certified members of groups of people who face significant barriers to employment. If you wish to benefit from the WOTC, you will first need to apply for the tax credit. From there, you must […]

If you know in advance what common errors employers make with W-2s, maybe you can avoid those mistakes next year. Know also that the data needed for state W-2 reporting may be more difficult to gather from far-flung employees, but states are cracking down on employers who haven’t withheld. Here are the “gotchas” relating to […]

All year long, employers withhold income tax from the paychecks of their employees. Each paycheck is distributed to you after your employer has taken out a portion of your paycheck to pay the IRS on your behalf. At the end of every year, your employer will send you a document called Form W-2, Wage and […]

Your recordkeeping system should include a summary of every transaction that takes place in your business’ name. Make sure you maintain and update a summary of all business transactions. How to log and track your business tax records Allocate space in your business books, accounting journals and ledgers for your gross income, deductions and credits. […]

All business owners face the challenges of not only attracting talent but also retaining employees once they are hired. One major way to increase your employee retention rate is to offer a generous benefits package. However, that’s a lot easier said than done for small businesses. Meanwhile, large companies offer these types of benefits as […]

As explained in a FinCEN release, the bipartisan Corporate Transparency Act, enacted in 2021 to curb illicit finance, requires many companies doing business in the United States to report information about the individuals who ultimately own or control them. Companies that are required to comply (“reporting companies”) must file their initial reports by the following […]

The Internal Revenue Service has announced new penalty relief for approximately 4.7 million individuals, businesses and tax-exempt organizations that were not sent automated collection reminder notices during the pandemic. The IRS will be providing $1 billion in penalty relief. Most of those receiving the penalty relief make under $400,000 a year. Due to the unprecedented […]

If you’re planning to enter the world of tax-exempt organizations, you first need to understand what a tax-exempt organization actually is. According to the IRS, the organization must fall into one of the following categories: charitable, religious, education, scientific, literary, testing for public safety, fostering national or international amateur sports competition or preventing cruelty to […]

The IRS has released a new Voluntary Disclosure Program to help businesses who want to pay back the money they received after filing Employee Retention Credit claims in error. Note: This is only for employers who believe they should have not filed as they did not qualify for ERC. This is part of a larger effort at […]