27
Jun 2020
0
(This is Blog Post #842)...
Are you an employer who owns a business where tipping is customary for providing food and beverages? You may qualify for a tax credit for businesses involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income. How the credit works The FICA credit applies with respect to tips that your employees receive from customers in connection with the provision of food or beverages, regardless of whether the food or beverages are for consumption on or off the premises. Although these tips are paid by customers, they’re treated for FICA tax purposes as if you paid them to your employees. Your employees are required to report their tips to you. You must withhold and remit the employee’s share of FICA taxes, and...
Is your business hiring this summer? If so, there may be some summer hire tax credits available to you. If the employees come from certain “targeted groups,” you may be eligible for the Work Opportunity Tax Credit (WOTC). This includes youth whom you bring in this summer for two or three months. The maximum credit employers can claim is $2,400 to $9,600 for each eligible employee. Summer hire tax credits: WOTC 10 targeted groups An employer is generally eligible for the credit only for qualified wages paid to members of 10 targeted groups: Qualified members of families receiving assistance under the Temporary Assistance for Needy Families program, Qualified veterans, Designated community residents who live in Empowerment Zones or rural renewal counties, Qualified ex-felons, Vocational rehabilitation referrals, Qualified...
10
Jun 2019
While the number of plug-in electric vehicles (EVs) is still small compared with other cars on the road, it’s growing. This is especially true in certain parts of the country. If you’re interested in purchasing an electric or hybrid vehicle, you may be eligible for tax savings for electric vehicles. A federal income tax credit is available of up to $7,500. (Depending on where you live, there may also be state tax breaks and other incentives.) However, the federal tax credit is subject to a complex phaseout rule that may reduce or eliminate the tax break. The phaseout is based on how many sales are made by a given manufacturer. The vehicles of two manufacturers have already begun to be phased out. That means they now...
05
Mar 2018
Many businesses hired in 2017, and more are planning to hire in 2018. If you’re among them and your hires include members of a “target group,” you may be eligible for the Work Opportunity tax credit (WOTC). If you made qualifying hires in 2017 and obtained proper certification, you can claim the WOTC on your 2017 tax return. Whether or not you’re eligible for 2017, keep the WOTC in mind in your 2018 hiring plans. Despite its proposed elimination under the House’s version of the Tax Cuts and Jobs Act, the credit survived the final version that was signed into law in December, so it’s also available for 2018. “Target groups,” defined Target groups include: Qualified individuals who have been unemployed for 27 weeks or more, Designated community...