Business Bad Debts

If your business involves selling products or services to customers on short-term credit, you have no doubt had to deal with some of them not paying you.  Reviewing your accounts receivable may reveal long overdue balances that are likely to never be collected.  You may have relief in the form of a bad debt deduction.

Tax Aspects of Fines and Penalties

Taxpayers engaged in a trade or business may not deduct “a fine or similar penalty” incurred in the conduct of that business and payable to a government entity for a violation of law.  However, taxpayers engaged in a trade or business can deduct a “compensatory payment,” even if it is paid in conjunction with a fine.  Thus, it is important to distinguish between the two types of payments.

Health Savings Accounts

With health care costs continually rising, a health savings account (HSA) may be very beneficial for both your business and your employees.  HSAs are becoming increasingly popular for that reason.  Eligible individuals have the option of setting up an HSA through a qualified HSA trustee, and employers have the option of implementing such health plans that allow for an HSA.  An HSA is a custodial account that allows individuals to contribute pre-tax dollars and use those funds for qualified medical expenses for that individual, his or her spouse, or dependents.  The employer also has the opt

Potential FUTA Tax Increases on the Horizon

Employers in certain states may face increased unemployment taxes for 2014, payable in January 2015.  Some states have had to borrow funds from the federal government due to their depleted unemployment insurance funds.  Employers in these states may have a larger payment in January 2015.

Taxability of Employer Gifts/Awards to Employees

Have you ever given a gift to an employee on their work anniversary?  Was the fair market value of that gift taxable to the employee?  Were you able to deduct the full value of the gift?  Many times employers give gifts and don't think about the tax effect to the employee.  The last thing the employer wants is for the employee to be taxed on the gift.  Below we will discuss some rules that apply when the gift or award is non-taxable to the employee.
De Minimis Fringe Benefits:


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