Today’s tax laws can be complex and confusing. Do you have a hard time keeping up with the constant changes and revisions? What’s even more daunting is that the simplest, most innocent mistake can result in unexpected penalties.
It’s tax time, and as your business filing deadline looms, it’s important for small business owners to stay on top of current tax changes and be aware of what to watch for in the future.
What Can You Deduct?
In preparation for filing, there’s a lot for small business owners to think about, and just as many deductions to benefit from. Just to name a few:
- Current capitalized expenses
- Auto expenses
- Business and professional fees
- Bad debt
- Insurance costs
- Home office expenses
- Retirement contributions
- Meals and entertainment expenses
- Travel expenses
The Affordable Care Act
The Affordable Care Act (ACA) added an estimated 2,400 pages to the U.S. tax code, further complicating the tax landscape for businesses of all sizes. Most familiar to business owners is the tax penalties for businesses with 100 or more employees who fail to provide health insurance to full-time equivalent employees and/or not reporting to the IRS what type and the cost of coverage provided for employees.
Beginning Jan. 1, 2016, businesses with 59 to 99 employees will also be required to offer health insurance.
Don’t Let Taxes Trip You Up
Tax law can be complicated, but they don’t have to trip you up. Consider these tips:
- Think about taxes all year long. Waiting until the last minute could make things more complicated and limit your money-saving options.
- Bring in a professional. Hire a knowledgeable tax attorney or accountant who can tackle complex tax laws with ease and help you identify tax breaks and deductions you might otherwise miss.
- Always be aware. Even with the help of a skilled professional, it’s your job to keep up with news related to laws.
- Never assume. Even though Congress has always passed the tax-extender bill at the last minute, it’s never guaranteed. Don’t make any business decisions on the assumption that tax breaks will pass.
Sage 50 Accounting not only has its Year-End Wizard to help simplify your year-end processes, this business management software also helps with simplified reports for you or your accountant to help speed up your filing process.
Sage 50 with Payroll offers error-free tax filing, standardized and customized reporting features, plus support from professional payroll experts.
Calculating deductions, keeping up with changing tax laws, and easily preparing employee paychecks and reports — reducing errors and saving time with every transaction.