Charity, worker classification, and other tax stuff
* Employees vs independent contractors
* Automation and tax collection
Corporate charitable giving limit has been increased this year
(25% of taxable income).
For those of you who itemize, the tax laws now allow an “increased individual limit” up to 100% of your AGI. This is cash contributions made during the calendar-year 2021.
(Contributions made to qualifying charitable organizations.)
Another change for individuals:
Even if you don’t itemize, you can still give and claim a charitable deduction
EMPLOYEES OR INDEPENDENT CONTRACTORS?
IRS reminds business owners (again!) how important is to correctly classify the people they work with.
Missclassifying employees as independent contractors can be costly.
You and/or your company will be held liable for employment taxes, including Social Security, Medicare, and other taxes.
A good starting point (to determine the correct classification):
1. WHAT service will be done, and
2. HOW the work will be done.
If you, the business owner, can control/direct both (what and how) then that worker is generally an employee.
AUTOMATION AND TAX COLLECTION
It happened again!!
Don’t panic if you received a collection letter from the IRS
You are not alone
Almost 90,000 taxpayers (who filed their taxes timely) received these erroneous collection notices
If you received one don’t stress
There’s no action needed on your part
The lesson in this:
It appears that automation and tax collection still haven’t learned to work well together 🙂
Thanks for visiting.
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