The IRS doesn’t treat mandatory gratuity as a tip.
While tipping is not mandatory in most of the U.S., it is often expected in many circumstances when services are provided. The tip income from services—whether cash or included in a charge—is taxable income. As taxable income, these tips are subject to federal income, social security and Medicare taxes, and may be subject to state income tax as well.
Staying secure in an online world gets trickier by the day. Cyber threats have long surpassed the old school pick pocket and do much more damage. Are you ready for the shift from magnetic-strip payment cards to safer, more secure chip card technology, also known as “EMV”? This is just one of many steps small businesses should take to secure themselves. Here are the top top security tips provided by SBA.gov:
1. Protect against viruses, spyware, and other malicious code
Make sure each of your business’s computers are equipped with antivirus software and antispyware and update regularly. Such software is readily available online from a variety of vendors. All software vendors regularly provide patches and updates to their products to correct security problems and improve functionality. Configure all software to install updates automatically.
Businesses often need to hire workers on a seasonal or part-time basis. For example, some businesses may need seasonal help for sporting events, holidays, and commercial fishing or harvest seasons.
Whether you are getting paid or paying someone else, questions often arise over the tax treatment of payments for part-time and seasonal help.
Ever wonder what the difference is between independent contractors and employees
It’s vital for all employers to properly distinguish between what constitutes an employee and an independent contractor in order to ensure that everyone receives the proper tax treatment.
One of the advantages of operating your own business is hiring family members. However, the employment tax requirements for family employees may vary from those that apply to other employees. Below, we point out some issues to consider when operating a husband and wife business.
Approximately 1 in 18 Americans have their identities stolen each year. Among the many identity theft scams is an emerging hoax in which cyber criminals obtain remote control of computer systems to hack into sensitive employee information to steal identities. Thieves will then use a stolen social security number to file a tax return and claim a fraudulent refund. Criminals may also use stolen employer identification numbers to create false Forms W-2 to support refund schemes. This threat is particularly relevant to office settings, so be sure that you and your employees are using proper precautions at work to avoid being victimized.
Scammers use a variety of methods to enter computer systems, often through the use of malicious software, such as viruses, worms, Trojans, adware, spyware and ransomware. This threatening software has the potential to not only impact you, but your employees and business clients as well.
In the business world, change is inevitable.
If members of your multi-member limited liability company (LLC) decide to part ways and sell their business shares to you, leaving you a single-member LLC disregarded entity, there are certain steps you’ll need to take and tax consequences you’ll want to consider to properly handle the transition.