JHS CPAs, LLP

01/24/2023

The deadline for businesses to file information returns for hired workers is almost here. By Jan. 31, 2023, employers must file Forms W-2 that show the wages paid and taxes withheld for 2022 for each employee. They must be provided to employees and filed with the Social Security Administration (SSA). Employers must also file Form W-3 to transmit Copy A of W-2 forms to the SSA. The Jan. 31 deadline also applies to Form 1099-NEC. These forms are provided to recipients and filed with the IRS to report non-employee compensation to independent contractors. Complete Form 1099-NEC to report any payment of $600 or more to a recipient. Visit our website to view the full article.

01/17/2023

If your small business has a retirement plan, and even if it doesn’t, you may see changes and benefits from a new law. Provisions in the SECURE 2.0 law will kick in over several years. For example, 401(k) plans will be required to automatically enroll employees when they become eligible, beginning with plan years after December 31, 2024. Employees will be permitted to opt out. Also in the new law are better retirement coverage for part-time workers; higher catch-up contribution limits for some 401(k) participants; provisions for small businesses with no retirement plan and much more. Visit our website https://bit.ly/2C975YJ to view the full article. Contact us if you have any questions about how the new law affects your situation.

01/13/2023

12/13/2022

Are you eligible to claim the qualified business income (QBI) deduction? Taxpayers other than corporations may be entitled to a deduction of up to 20% of their QBI. For 2022, if taxable income exceeds $170,050 for single taxpayers, or $340,100 for a married couple filing jointly, the QBI deduction may be limited in certain cases. Taxpayers may be able to save taxes with this deduction (or be subject to a smaller phaseout of the deduction), by deferring income or accelerating deductions at year-end so that they come under the dollar thresholds. You also may be able to increase the deduction by increasing W-2 wages before year-end. The rules are complex, so consult with us before taking steps. Visit our website https://bit.ly/2C975YJ to view the full article.

12/06/2022

If you’re launching a new venture, you’re probably wondering which form of business is most suitable. There are advantages and disadvantages of doing business as a C corporation. For example, a C corporation allows the business to be treated and taxed as a separate entity from you as the owner. A properly structured corporation can protect you from business debts yet enable you to control day-to-day operations and corporate acts such as redemptions, acquisitions and liquidations. Plus, the corporate tax rate is 21%, which is lower than the highest noncorporate rate. One potential drawback: Earnings can be subject to double tax, once at the corporate level and again when distributed to you. Visit our website https://bit.ly/2C975YJ to view the full article.