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Tax planning tips during the holidays

| Dec 20, 2017 | Internal Revenue Service

While we all would like to enjoy the holiday season, we understand that our clients have much more going on than just holiday parties and end-of-year celebrations. Of course, there are timesheet and vacation expenditures, annual reports that must be prepared and, of course, tax preparation tasks.  

With all that goes on during the holiday season, business owners must stay on task so that they can avoid problems when tax season comes. This post will highlight important few payroll items that business owners should be wary of. 

Confirm wage, benefits and tax data – Business owners should verify that the proper employee tax withholdings have been taking place, as well as unemployment compensation, and other special tax items such as group life insurance, and business expense reimbursements.

Confirm employer and employee data – The information used in processing your quarterly reports should be the same. This is important if your business has undergone substantial changes or has been purchased by another entity.

Address any other special financial procedures – Around this time of year, bonus payments should be scheduled and calculated, and reports required for your tax filing should be completed (if not commenced). Further, reminders to have employees complete new w-4’s if their situations have changed is helpful.

Confirm account balances – While this has important accounting and tax implications, business owners should make sure that all checks that have been issued have been cashed.

The preceding is not legal advice, but if you have questions about these tips, consult an experienced tax attorney

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