Deferring compensation is one strategy employees can use to reduce their tax liability. Qualified and nonqualified are the two types of deferred compensation plans. To keep your business legal, learn how qualified vs. nonqualified plans differ.
Read More What Is the Difference Between Qualified vs. Nonqualified Plans?
Remote work may have taken the nation by storm during the pandemic, but it isn’t evenly distributed across the USA. For example, Colorado and Massachusetts have a significantly higher remote-work rate than Mississippi and Alabama.
Read More Remote Work Map: The States With the Most People Working from Home
Your employees might have a change in family status while at your small business. An employee could get married, while another might give birth to or adopt a child. When your employees have a family status change, you need to update payroll records.
Read More How to Update Payroll for an Employee With a Family Status Change
You may have to file information returns like Form W-2 and Form 1099-NEC when you have employees, work with independent contractors, or meet other requirements. Some businesses must electronically file these returns with the IRS. There is an IRS electronic filing threshold that determines which companies must e-file.
Read More IRS Electronic Filing Requirements: Who Needs to E-file?
Deciding how to pay employees takes careful consideration. Not only do you need to think about what payment methods for employees you will use (e.g., direct deposit vs. paper checks), but you also need to consider the types of wages you will provide.
Read More Types of Wages That Might Come up in Your Small Business
If you hire an independent contractor and pay them $2,000 or more (new 1099 reporting threshold beginning in tax year 2026, up from $600) during the tax year, you must create, distribute, and file Form-1099-NEC. You might wonder, How do I file a 1099?
Read More How Do I File a 1099 for My Independent Contractors?
If you are self-employed, you might be overwhelmed by the expenses you have, including your self-employment tax liabilities. However, you can claim self-employment tax deductions to reduce the amount you owe in taxes. See how you can take advantage of self-employed tax relief below.
Read More 9 Self-employment Tax Deductions You Should Be Taking
Before you can get your small company rolling, you need to decide on a business structure. Your business entity impacts everything from taxes to profits and losses, so it’s essential that you choose a structure that works for your company. One popular small business structure is an S corporation. According to the SBA, 52.1% of […]
Read More What Is an S Corporation?
Thinking about providing petty cash to employees? Before establishing a petty cash fund at your small business, be prepared to create a petty cash accounting system.
Read More Petty Cash: Accounting & Beyond
Your roof starts leaking. So, you hire a contractor to put in a new one. At the end of the job, you receive a piece of paper (an invoice) from the contractor billing you for their services. And if your business sells goods or services to customers and doesn’t collect money immediately, you’ll also have […]
Read More What Is an Invoice? That’ll Be $400, Net 30