Do you employ your children to work in your business? This can be a very smart move for several tax-related reasons. But be warned. When junior goes to work for you, you’d better have answers ready to pointed questions asked by the Department of Labor (DOL) and/or the IRS. For example, a DOL auditor might question your claim and decide it’s illegal for you to employ … [Read more...]
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Know This About Employer-Issued Incentive Stock Options (ISOs)
Taking advantage of employer-issued incentive stock options (ISOs) can potentially put a lot of money in your pocket. But to come out a winner, you’ll have to make some important decisions. To make them wisely, you’ll need to understand the impact of both the regular federal income tax and the alternative minimum tax (AMT) on your ISOs. Want to find out more about this … [Read more...]
Know This About Employer-Issued Non-Qualified Stock Options
In a separate article in this issue of the Tax Reduction Letter, we discussed incentive stock options. These options are entitled to preferential income-tax treatment (but are also subject to restrictions and the dreaded alternative minimum tax (AMT). In the article discussed here, we’re going to explain how employer-issued non-qualified stock options work and how they … [Read more...]
Per Diems Post-Tax Reform: What the TCJA Has and Hasn’t Changed
Do you have employees who travel on business for your company? Then you know that complicated recordkeeping is a royal pain in the neck for you and your employees. What’s more, handling things the wrong way puts you at risk for an audit disallowance. Well, there’s a solution to these problems. Consider using the IRS travel per diem method. Want to learn how the per … [Read more...]
Dynamex Causing Incorrect W-2 Classifications for Independent Contractors
The California Supreme Court made an important ruling in the Dynamex case. The court’s decision means that you could inadvertently improperly reclassify your independent contractors and make them suffer needlessly. The Dynamex decision and subsequent new California law causes trouble not only in California but throughout the country. If you have independent contractors … [Read more...]