Beyond the Numbers

Meals and Entertainment Deductions

Beginning Jan. 1, 2018, the rules regarding the deductibility of expenses paid by the business for meals and entertainment changed. Now businesses should have three categories of meals and entertainment to account for the following: Non Deductible: Entertaining clients, prospects, etc. even if a business was conducted immediately prior to or after the entertainment Events…

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Personal Property Taxes

Property tax not only applies to real property, but also applies to personal property that is owned and used in a business.  Personal property includes leasehold improvements, machinery, equipment, furniture and supplies. It does not apply to inventory. All businesses are required to complete a personal property tax affidavit form with their county and file…

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1099 Reporting Requirements

Taxpayers who have an active trade or business are required to prepare Form(s) 1099 to report various types of payments made during the year. The most common type of payment requiring a Form 1099 is for services rendered, where the total payments exceed $600. The filing requirement does not include payments made to corporations unless…

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Health Insurance Paid on Behalf of Partners and LLC Members

Partners in a partnership and LLC members may be able to deduct all the medical, dental and qualified long-term care insurance paid on their behalf and on their family. In order to deduct the premiums: The policy must be in the name of the company, partner or member. The premiums must be paid by the…

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Washington Paid Family and Medical Leave Program

Washington State becomes the 5th in the nation to offer paid family and medical leave benefits to employees. The program is administered by the Employment Security Department with the premiums being paid by both the employees and employers. A few things employers should take note of: Beginning 1, 2019, the initial premium rate is .04%…

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Washington Paid Sick Leave

Beginning Jan. 1, 2018, all Washington employers were required to begin providing sick leave to employees as part of Initiative 1433. A few things employers need to be aware of: Sick leave must be accrued at a minimum rate of 1 hour for every 40 hours worked. Paid sick leave must be at the employee’s…

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Minimum Wage Rates

Effective Jan. 1, 2019, the Washington minimum wage rate increases to $12 per hour. The Oregon minimum wage rate increases to $11.25 per hour, unless within the Portland Metro Urban Growth Boundary where the rate will be $12.50.

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W-2 Reporting for Health Insurance Paid on Behalf of S Corporation Shareholders

You may be able to deduct all the medical, dental and qualified long-term care insurance paid by the corporation on behalf of you and your family. In order to deduct the premiums, the following rules are in place: The policy must be in the name of the S corporation or if the shareholder is the…

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W-2 Reporting of the Personal Use of Business Vehicles

If a business owns or leases vehicles that shareholders or employees use for personal reasons (including commuting) you need to include an employee benefit amount in W-2 wages. The Internal Revenue Service has established valuation guidelines to be used in calculating this benefit. The easiest way to fulfill the reporting requirement is to add the…

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Filing Due Dates

In 2018 the filing deadline for multiple types of returns changed. The various due dates are: W-2s – Jan. 31 for providing forms to employees and filing with Social Security Administration 1099s – Jan. 31 for providing forms to vendors and filing with Internal Revenue Service Form 1065 – March 15 with allowed extension to…

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