Bookkeeping News & Tips

The Employer Provided Child Care Tax Credit

The Economic Growth and Tax Relief Reconciliation Act of 2001 created a new tax credit to encourage businesses to assist their employees with child care by providing child care on-site or assisting their employees in finding child care. The Employer-Provided Child Care Credit was extended in the American Taxpayer Relief Act on January 1, 2013. The Employer-Provided Child Care Credit is 25 percent of child care facility related expenditures plus 10 percent of child care resource and referral expenditures paid or incurred during the tax year -- limited to $150,000 per tax year. The credit is part of the general business credit and can be claimed any time within 3 years from the due date of the return. (IRS Form 8882) [More]

Did You Know the Small Business Health Care Tax Credit is Increasing?

For the past 3 years —2010 to 2013— the maximum credit for small business employers has been 35% and 25% for small tax-exempt employers such as charities. However, in Jan 2014 an enhanced version of the credit will take effect. Small business employer’s maximum credit will be 50% and small tax-exempt employer’s maximum credit will be 35%. [More]

Fringe Benefit Valuation Rules for Employer Provided- Vehicles

If an employer provides an employee with a company-owned vehicle, and the employee uses the vehicle foe personal purposes, then the value of that personal use must be included as taxable income on the employee’s W-2. There are several methods allowed by the IRS to value the vehicle rather than using actual costs. Here we will cover the General Valuation Method and the Cents-per-Mile Method. [More]

How To Keep Your Small Business Finances In Order

Most people don’t envision the hours of accounting work necessary to run their small business. It is usually an afterthought when starting a business, but ends up consuming a good chunk of your time. You can prevent getting bogged down with tedious accounting procedures by first, staying organized. Here are some tips to help you tackle accounting head on. [More]

Freelancer or Freeloader?

During this time of year, a lot of business owners take the time to revamp parts of their businesses. In some cases this may require hiring someone to help with updating marketing materials, or drafting content for your webpage. When you are looking for someone to fulfill those roles you have the option of hiring an employee—temporary or permanent— or contracting a freelancer. Your choice could save you money during tax time. [More]