Recent News & Blog / Business Tax
Does your business have employees who get tips? You may qualify for a tax credit
If you’re an employer with a business where tipping is routine when providing food and beverages, you may qualify for a federal tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income. The credit is claimed as part of the general business credit. In other words, no credit is available to the extent the tip income just brings the employee up to $5.15 per hour, calculated monthly. Contact the CPA's and business tax advisors for questions about this potentially valuable tax break, tax news and more tax tips!
Defer a current tax bill with a like-kind exchange
If you’re interested in selling commercial or investment real estate that has appreciated significantly, one way to defer a tax bill on the gain is with a Section 1031 “like-kind” exchange. With this transaction, you exchange the property rather than sell it. Like-kind exchanges can be an attractive tax-deferred way to dispose of real property if you anticipate a large tax bill and meet the requirements. Contact the CPA's and business tax advisors at SEK if you have tax questions or for more tax tips.
The standard business mileage rate will be going up slightly in 2024
The optional standard mileage rate used to calculate the deductible cost of operating a vehicle for business will be going up slightly in 2024, by 1.5 cents per mile. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup or panel truck will be 67 cents. The standard rate is useful if you don’t want to keep track of actual vehicle-related expenses. But you still must record certain information, such as the mileage, dates and destinations of trips. Contact the CPA's and business tax advisors at SEK for more financial advice, tax tips and tax updates.
2024 Q1 tax calendar: Key deadlines for businesses and other employers
Here are a few key tax-related deadlines for businesses during the first quarter of 2024. Contact the CPA's and financial advisors at SEK to learn more about filing requirements and ensure you’re meeting all applicable deadlines.
2024 Rates & Dates
The IRS recently released the 2024 rates and dates, which includes the following:
2024 Payroll Tax Bulletin
The IRS recently released the 2024 payroll tax rates, which we have summarized in a bulletin that contains the following:
Business owners: Giving gifts and throwing parties can help show gratitude and provide tax breaks
It’s holiday time again! Your business may want to show its appreciation to employees and customers by giving them gifts or hosting parties. It’s important to understand the tax implications. Gifts to customers, “De minimis” noncash gifts to employees (such as a holiday turkey), holiday parties and holiday cards are also likely to be deductible. Contact the CPA's and business tax advisors at SEK with your holiday tax questions and for more tax tips.
Updated Maryland minimum wage and overtime law
Effective January 1, 2024, Maryland State's employee minimum wage is increasing to $15 per hour for all employers, regardless of size. In contrast to the 2023 state rate hike, the rate remains consistent regardless of whether a company has more or fewer than 15 employees.
A company car is a valuable perk but don’t forget about taxes
One of the most appreciated fringe benefits for owners and employees of small businesses is the use of a company car. This perk results in tax deductions for the employer and tax breaks for the owners and employees using the cars. For tax deduction purposes, a business treats the car much the same way it would any other business asset and comes with complications and paperwork. Our CPA's and Tax Advisors can help keep you in compliance with the rules. Give our accounting firm a call today for more tax tips and financial advice.
New FinCEN reporting requirement: beneficial ownership information reporting under the Corporate Transparency Act
The Corporate Transparency Act (“CTA”) was enacted January 1, 2021, as part of the National Defense Authorization Act, representing the most significant reformation of the Bank Secrecy Act and related anti–money laundering rules since the U.S. Patriot Act.