IRS Announces Annual Inflation Adjustments
With the end of the year in sight, the IRS has announced inflation adjustments taking effect in the new year. This does not directly affect the taxes you’ll be filing by April 15, 2022. Rather, these adjustments generally apply to tax returns you will be filing in 2023. Although that seems far away, it pays […]
A Tax Checklist for Small Businesses
The end of the year is a good time to clean up and catch up with paperwork. It is a time to make sure everything is in order for taxes as well as for general business purposes. The following checklist is a guide to the items your business will need for taxes as well as […]
Payroll Tax Rates and Contribution Limits for 2022
Below are federal payroll tax rates and benefits contribution limits for 2022. Social Security tax In 2022, the Social Security tax rate is 6.2% for employers and employees, unchanged from 2021. The Social Security wage base is $147,000 for employers and employees, increasing from $142,800 in 2021. Self-employed people must pay 12.4% on the first $147,000. Medicare tax In […]
Employee Retention Credit: Further Guidance
In COVID Tax Tip 2021-123, the IRS clarifies some of the confusion surrounding the powerful but complex Employee Retention Credit. The IRS is addressing changes made by the American Rescue Plan Act of 2021 that apply to the third and fourth quarters of 2021. These changes include: Making the credit available to eligible employers that pay […]
Section 174 Research Deduction Changes for 2022
The IRS will require business owners to amortize Section 174 research expenses over multiple years instead of deducting them in the year incurred unless a provision in the Tax Cuts and Jobs Act changes before December 31. Through 2021, businesses could deduct Section 174 expenses in the year in which they were incurred or capitalize […]
Know the Basics of Business Valuations
A business valuation can serve any of several purposes, but the goal is always the same: to find out the value of your business in dollars and cents. Armed with this knowledge, you’ll never be caught off guard. Arguably, the most important part of a valuation is not a step in the process — it […]
