As 2017 winds down, it is important for business owners to analyze how the year has went before it is too late. Taking a look at the situation now could present you the opportunity to save money in taxes when it comes time to prepare your tax return.
We hope you have achieved all the goals you set for 2017, and have 2018 goals ready to implement!
If you didn’t achieve or set goals for 2017…Why not? Without a game plan and goals you get what you set… NOTHING!
These are reminders to all Wisconsin small business owners to help stay compliant with IRS laws and also save money in tax.
Christmas Gifts/Bonus – Gifts and/or bonuses paid to employees in excess of $25.00 must be included in W-2 income as payroll.
Christmas Party:
W-2’s – Make sure all employee information is correct prior to filing W-2’s. This includes name, address, and social security number.
1099’s
There are a variety of 1099 forms that account for other sources of income. Issuers must mail out these 2017 forms to recipients by January 31, 2018 . The most common form, Form 1099-MISC, must be provided to the non-employee and submitted to the IRS for everyone to whom you paid at least $600 or more during the tax year. It is important to note that this 1099-MISC deadline applies when reporting non-employee compensation (Box 7).
Mileage
The rate for 2017 is 53.5 cents per mile. 2018 rate has yet to be released, but usually it is calculated based on cost to maintain a vehicle on the road ( Gas prices are a big variable).
Keep track of:
Charity or Advertising?
Why does it matter? There are limitations for how much you can deduct of charity deductions. When helping out a cause, is there a way to promote your business? If so, document this and it will move the deduction to advertising.
Bad Debts
You cannot have a bad debt if you are on a cash basis unless it’s a NSF check that’s noncollectable!
Equipment Needs
Is there a piece of equipment your business needs (not wants)?
Old Records/Files
Corporations
Inventory:
Do you have your year-end inventory planned? The IRS requires that you must take a physical count of all inventories on hand as of December 31. This list would include a description of each inventory item, quantity on hand, unit price, and total cost. Work-in-progress inventory is valued at the cost of materials, labor, and other direct costs included in the unfinished inventory items as of December 31.
Wishing you and your family the best this holiday season!
Hammernik & Associates
The post Small Business Owners: Year End Reminders That Will Keep You Compliant & Save You Tax appeared first on Talking Tax to Milwaukee.
Telephone: (414) 545-1890
E-mail: info@hammernikassoc.com
10777 Beloit Rd.
Greenfield, WI 53228