As a business owner, there are a number of issues that one must consider. Some of the challenges include but are not limited to cultivating new business; earning a profit; and ensuring that customers are getting quality services for a fair value. However, one of the factors that companies overlook are tax issues that may arise.
Different Issues
There are a number of tax factors that an owner needs to take into account. Some of these elements include:
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Reporting Employee Healthcare Coverage
With the implementation of the Affordable Healthcare Act, commonly referred to as “Obamacare”, companies that offer their workers health insurance need to have detailed reports of employee healthcare. These reports need to provide detailed information on any coverage offered to full-time employees as well as filing a transmittal and employee form to the Internal Revenue Service.
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Starting a 401(k) Plan
If a business chooses to offer their employees a 401(k) retirement savings plan, there is an available tax credit for the first three (3) years. This credit is designed to offset any plan start-up costs. At the same time, the costs associated with implementing the 401(k) plan may be tax-deductible.
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Tax Extender Legislation
When Congress agreed to fund the federal government through September of 2016, a number of certain tax breaks were made permanent. One of these breaks includes allowing companies to permanently deduct the price of equipment, software, and any other necessary investments.
Some breaks that are not permanent but that have been extended include bonus depreciation, which allows a company to accelerate depreciation in the year that they buy a capital asset; and the Work Opportunity Tax Credit, which would be extended when some long-term unemployed people are hired.
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Online Sales Tax-Possible Changes
Currently, states are only allowed to charge sales tax in a particular state if they have a significant physical presence in the state in question. However, there are two (2) pieces of legislation, the Marketplace Fairness Act (MFA) and the Remote Transaction Parity Act (RTPA), which propose that states may be allowed to charge sales tax on online purchases regardless of the company’s presence within a state.
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Annual Reconciliation and Employer Deadlines
A number of states currently require annual reconciliations and W-2 forms by January 31 of a calendar year. At this time, there is a gap between when a worker receives their W-2 form and when they are filed with the state. There is a movement to have all forms filed on January 31, when the employees receive the forms in question. The goal is to help put a stop to tax fraud by allowing all documents to be filed at the same time.
Conclusion
If an owner has any questions regarding tax issues, it can be useful to speak to a business attorney. A lawyer can help explain any issues tax issues that may arise when offering benefits to a worker. The lawyer can also offer insight as to what the business owner must do to comply with all applicable laws while ensuring that the needs of their workers are met.
r.w.