Tax/Accounting
Consultant’s Corner: Deducting Meal Expenses
Q: I’m a sole proprietor, going out of town on a training trip. For the purposes of deducting my meal expenses, do I have to save all my meal receipts for the whole week, or can I pay myself a per diem? With your business structured as a sole proprietorship, you can deduct your travel…
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What to Do When You Fall Behind on Tax Payments
Keeping up with your required tax payments is a major obligations—and challenge—as a business owner. But sometimes a business owner falls behind. If that’s you, know that you’re not the only one. That’s when it’s time to find a tax problem resolution to solve your problem. The ADP blog team has broken down some of…
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Consultant’s Corner: Tax Treatment of Tipped Employees
Question: Are tips received and reported by a waitress taxable for unemployment calculations? Tips reported by a restaurant waitress to an employer are taxable for unemployment tax calculation purposes, subject to certain thresholds and guidelines. Also, there are additional tax treatment considerations for different types of food service businesses and tip and gratuity procedures that…
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Don’t Make These Common Tax Mistakes!
Taxes are one of the most complicated tasks for small business owners, and it isn’t hard to make mistakes—even big ones. Small business tax specialist Gail Rosen shares some of the most common mistakes small business owners make with their taxes, and how to avoid them, including correctly classifying employees and contractors, deducting startup costs,…
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Do You Need Outside Help with Payroll?
A small business owner has to wear a lot of hats. Early on, one of those hats is often for handling payroll. You may think that as long as the business is small, with just a couple employees, payroll is something you can take care of on your own. But when should you look at…
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Consultant’s Corner: Maximizing Your Credit Score with a Balance Transfer
Q. How does shifting debt from one credit card to another and reducing the credit utilization impact your overall credit profile and credit score? Will it increase, decrease, or stay the same? Credit card utilization is one of the most important factors credit scoring models use to calculate one’s credit score. Generally speaking, there is…
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Consultant’s Corner: S Corp Payroll Taxes
Q: I am the sole shareholder and employee of an S-corp. I want to pay myself a wage or salary. How much should I be deducting from my paycheck? What should I do with what I withhold? Do I need software? S corp owner-officer compensation considerations When an owner of a corporation (C or S…
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Consultant’s Corner: Tax Consequences of Adding a Member to an LLC
Q. I have a Single Member LLC. I am in the process of adding a partner, and want to know how the IRS will view this change relative to potential tax consequences. What would be the best entity selection for the new two-partner business? An LLC is unique in that it can be taxed as…
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Get Your Invoices Right
A mistake on your invoices can create major headaches—delayed payments that hurt your cash flow, an unprofessional image that damages your brand, and more. So getting this step right is very important for your business—you’ve presumably done a great job on the project you were hired for, so now is the time to close this…
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Consultant’s Corner: Starting a Nonprofit Association
Q: I wish to start an “unincorporated nonprofit association” as a nonprofit enterprise to help disabled veterans. What steps should I take and what are the limits of an “association” rather than a 501[C](3) nonprofit organization? These informal groups are called unincorporated associations. The advantages of being an unincorporated association is that there are (generally)…
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