2018 is finally here and PayTech is here to set your business up for success. This month, we feature small business tips for 2018, tax law updates, and an important workplace harassment webinar you won’t want to miss!
The term “Check” comes from the game of chess.
Small business owners have entered 2018 with many questions about how big their tax bills will be, but they’re also optimistic about profiting from a strong economy. And aside from financial matters, owners with employees must stay mindful about one of the troubling issues of 2017, sexual harassment.
Here are five things small business owners need to know about or do in 2018:
The new tax law changes rates for many small business owners, whether they are sole proprietorships, partnerships or corporations. But the benefits aren’t across the board: Some owners will lose out on savings because they’ll end 2018 with income above thresholds set out in the law, or they work in fields like accounting, law or consulting.
The IRS is working to develop withholding guidance to implement the tax reform bill signed into law on December 22. We anticipate issuing the initial withholding guidance in January, and employers and payroll service providers will be encouraged to implement the changes in February. The IRS emphasizes this information will be designed to work with the existing Forms W-4 that employees have already filed, and no further action by taxpayers is needed at this time.
PayTech would like to provide a free webinar on Harassment Prevention and training. Join us Wednesday January 24th at 10am AZ time (MST)
Properly training your managers to recognize and prevent harassment is critical to keeping your organization compliant. This webinar will provide insight into the legal obligations of employers and managers as well as best practices for preventing sexual harassment.
We hope you can join us, click here to register for the webinar.
In general, the new tax Act provides for stricter limits on the deductibility of business meals and entertainment expenses. Under the Act, entertainment expenses incurred or paid after December 31, 2017 are nondeductible unless they fall under the specific exceptions in Code Section 274(e). One of those exceptions is for “expenses for recreation, social, or similar activities primarily for the benefit of the taxpayer’s employees, other than highly compensated employees”. (i.e. office holiday parties are still deductible). Business meals provided for the convenience of the employer are now only 50% deductible whereas before the Act they were fully deductible. Barring further action by Congress those meals will be nondeductible after 2025. Businesses should keep the new rules in mind as they plan their 2018 meals and entertainment budgets. Click here for a FREE CHART comparing the rules before and after the Act.