Important Tax Information for Small Business

Description

What you will be learning:

Business use of your home

Simplified Home Office Deduction

Qualifying for business use of the home deduction – Exclusive Use Test

Regular Use Test

Principal place of business test

Activities that don’t disqualify your home office

Meeting place for customers test

Separate structure test

Deduction limits

Types of expenses

Expenses related to the business activity in the home

Business Use of the Home Expenses

Deductible expenses

Deduction limits – Gross Income

Example – Determining the home office deduction

What you can't do

Selling your home when you used it for business

Illegal Tax Avoidance Schemes

For employers

Federal taxes when hiring employees or independent contractors

Employment Taxes

Worker classification - Employee or Independent Contractor

Behavioral Control

Financial Control

Relationship with worker

Determining worker status

Employer responsibilities if you have employees

Determining eligibility of employees to work legally in the U.S.

Form W-4

Verification of employee SSNs

Form W-2 Wage and Tax Statement

Ensuring new employees provide correct information

Document the steps you take

Issuing Forms W-2

Earned Income Tax Credit (EITC)

Individual Tax Identification Number (ITIN)

Independent Contractors/Filing Proper Forms