Lynx Accounting

01/04/2025

Tax season is upon us.

08/13/2024

11/15/2023

If I hire Sue for 25 hours a week and she works 35 hours, must I pay her overtime?

No, under federal law, overtime pay is required only for hours worked over 40 in a workweek.

AIPB Bookkeeping Tips
Volume 18: Issue 33

08/09/2023

To ensure the IRS allows expenses taken as deductions against business income, require from the employee receipts showing the date, place and amount of the expense—and a contemporaneous written record of the other person(s) at the event, their business, their relationship to your firm’s employee and the specific business purpose of the event.

AIPB Bookkeping Tips
Volume 18: Issue 20

06/14/2023

Tis the season for summer hires.

Rules for temps and part-timers:

Paid holidays for part-time and summer help are optional under federal law, just as for regular employees—but check state law.

Paid vacation is not required, but if normally offered, some federal and state laws apply.

Actual benefits are optional—but if offered, the benefits should be spelled out in a written benefits plan.

Always check your state’s laws!

AIPB Bookkeeping Tips
VOLUME 18: Issue 13

12/28/2022

Bonuses often are determined in December but not paid until the next calendar year. Sometimes this allows the business to deduct the bonuses in one year even though the employees don’t include it in their gross income until the following calendar year.

But keep in mind:

Accrual basis firms cannot deduct in 2022 bonuses that owners do not recognize until 2023, including deferred payments made to those who own 50% or more of a C corp or any portion of an S corp, personal service firm or partnership.

Cash basis firms: Bonuses to a majority owner are considered paid in 2022 if the amount of the bonus is determined and the business has the cash to pay it in 2022, even if paid in 2023.
-AIPB 12/28/22

09/01/2021

For a business meal to be deductible, there must be a written record stating who was at each meal, the business relationship to your employee of each person attending, and the specific business purpose of the meal, such as the business matter or topic discussed.

08/18/2021

PayPal receipts only substantiate amounts, vendors paid, and dates of payment. To be considered sufficient proof of expense for tax purposes, the receipt must detail exactly what was purchased and how it was used.

07/21/2021

Something to keep in mind…A lack of bookkeeping records loses deductions.

01/13/2021

It's that time of year again! Begin consolidating all of your tax documents, so you are prepared to file.