The Consolidated Appropriations Act, 2021 (CCA), which was passed by Congress and signed by the president late last December, included a very tax-beneficial provision that liberalized the interaction between PPP loans and the Employee Retention Credit (ERC). Prior to its passage, if an employer obtained a Paycheck Protection Program (PPP) loan, the employer was ineligible […]
Employee
Elusive Employee Business Tax Deduction versus Contractors
When we say an employee business tax deduction we mean it to refer to an employee business expense, such as payroll. We will point out the difference between how to treat an employee tax expense versus a 1099 contractor expense, along with AMT under tax reform. For starters, one major difference between being an employee and being self-employed is how you deduct the expenses you incur related to your work. A self-employed individual is able to deduct expenses on his or her business schedule. However, an employee is generally limited to deducting them as itemized deductions.
Reduce Employee Burnout in Your Small Business
How does a business owner reduce employee burnout? Make no mistake about it: Employee burnout is very real; it’s costing your small business a lot more money than you realize. It’s also not a problem that you’re necessarily going to be able to buy your way out of, either. It does affect your bottom line.
Employee Business Expenses: Tax Reform Suspends Tax Deduction
Tax Reform Impacts Employee Business Expenses Miscellaneous Itemized Deductions Subject to the 2% AGI Floor Not all provisions of the Tax Cuts and Jobs Act benefit taxpayers, so if you own a business, pay attention. The suspension of the deduction for employee business cost stinks for employees. Under prior law, taxpayers who were employees were […]
New Tax Law Severely Limits Entertainment Deductions
Entertainment Deductions Have New Rules Under Tax Reform Employee Tax Reform Note Tax Reform made changes to business entertainment deductions, for you, the business owner. This is one of a series of articles explaining how the various tax changes in the GOP’s Tax Cuts & Jobs Act affects you. “The Act” for purposes in this […]