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Three Ways to Deduct the Cost of Business Property
Under current law, taxpayers have a variety of options for deducting some or all of the cost of property used in business rather than depreciating it over a period of years. Here’s a quick overview of three of them: De Minimis Expensing Safe Harbor Taxpayers with “applicable financial statements” (such as a certified audited…
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Reimbursement of Employee Health Insurance Premiums (Including S Corporation Shareholders)
A little known and very under-publicized change to the insurance tax laws that took place on January 1, 2014, has exposed employers to a potentially heavy excise tax if they reimburse employees for health insurance premiums vs. enrolling in group plans. This includes employee shareholders. Employer reimbursements or direct payment of health insurance premiums for…
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FedEx Drivers in California Held to be Employees
The Court of Appeals for the Ninth Circuit in California, reversing a California District Court, has held that FedEx drivers in California are employees, not independent contractors under California’s “right to control” test. The tests used to evaluate whether a worker is an employee or independent contractor are generally comprised of 10 factors. One of…
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IRS to Implement Special Transit Benefit Procedure
On January 8, 2015 the IRS issued Notice 2015-2 “Application of Retroactive increase in Excludable Transit Benefits” which allows employers to implement a retroactive increase in excludable qualified transit benefits. The adjustment can be made on the 4th quarter Form 941 (Employer’s Quarterly Federal Tax Return) to reduce wages subject to withholding for all 4…
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The “California Competes” Tax Credit is Now a Possibility for all California Businesses
The California Governor’s Office of Business and Economic Development, or Go-Biz, just completed its first round of accepting applications for the new California Competes Tax Credit. The next round of applications will be accepted following the beginning of the new fiscal year on July 1. The California Competes Tax Credit is a “negotiated credit” that…
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California New Employment Credit Information
The Enterprise Zone Hiring Credit was replaced by the New Employment Credit effective January 1, 2014. To obtain a credit, a qualified taxpayer must hire a qualified full-time employee on or after January 1, 2014 and pay qualified wages attributable to work performed by the qualified full-time employee in a Designated Geographic Area (DGA). In…