Whereas the prospect of complete tax reform looms giant, there are some actions that you could take now that may aid you and what you are promoting do nicely underneath present or new tax guidelines. As well as, legislation modifications and different components might affect actions you might want to take now.
Listed below are 10 concepts.
Enterprise Finance Ideas for 2017
Assessment 2016 Income and Bills
How did you do final 12 months? Had been your revenues what you anticipated them to be? Had been your bills greater or decrease than you budgeted? Understanding what occurred final 12 months ought to recommend you what to do now. Maybe it’s best to elevate costs on your items or providers, rein in spending, or make different changes to enhance profitability.
Adapt to Minimal Wage Will increase
Whereas the federal minimal wage is unchanged thus far for 2017, there have been some will increase on the state and native ranges. For instance, Washington’s fee will increase to $11 per hour. An identical fee applies in New York Metropolis for employers with 11 or extra workers ($10.50 for smaller employers). Test along with your state labor division or view this map to be sure you are following the legislation.
Be aware the Increased Social Safety Wage Base
You probably have house owners, managers, and different excessive earners, the corporate might have greater payroll taxes for the 12 months. The rationale: The wage base for the Social Safety tax portion of FICA in 2017 is $127,200 (up from $118,500 in 2016). There isn’t a restrict on compensation topic to the Medicare tax portion of FICA.
Test for Adjustments in State Legal guidelines on Go away Time
States have been implementing legal guidelines on paid household go away time, sick pay, and college/parental go away time. For instance, Vermont mandates paid sick go away as of January 1, 2017, though employers with 5 or fewer workers usually are not topic to the foundations till 2018. Underneath this new legislation, workers earn one hour of sick time for every 52 hours labored, as much as 24 hours per 12 months in 2017 and 2018, and 40 hours starting in 2019.
Mark Your Odometer
In case you use a private automobile for enterprise driving, you might want to preserve observe of your mileage. Begin doing this by noting your odometer on January 1. Use an app, corresponding to MileIQ, or a written log to substantiate what you are promoting driving for the 12 months so that you’ll be capable to deduct the price of enterprise driving. You want this file even when you depend on the IRS commonplace mileage fee (53.5 cents per mile in 2017).
Finances for Postage Hikes
Starting January 22, some new charges go into impact. For instance, the value of a first-class stamp will go from 47 cents to 49 cents.
Implement the New I-9
Beginning on January 17, you should use a revised type for verifying the legality of a brand new worker to work within the U.S. The brand new Type I-9 solely wants an worker’s final identify (relatively than all names used) and a few sections have been simplified.
Resolve Whether or not to Use Well being Reimbursement Preparations
A part of the twenty first Century Cures Act, which was signed into legislation on December 13, 2016, permits small employers to reimburse workers for his or her particular person medical insurance premiums. So long as employers observe sure guidelines concerning caps on reimbursement, discover necessities, and extra, employers received’t be penalized for having a well being plan that doesn’t comport with Reasonably priced Care Act necessities, as had been feared earlier than this legislation. It’s been estimated that reimbursing workers prices about 60% lower than providing an organization well being plan, so extra small employers can help worker with their well being protection via small enterprise HRAs.
Meet with Advisors Now
Earlier than you go too deep into the New 12 months, schedule an appointment along with your CPA or different to get able to file your tax return and different data returns for 2016. Additionally, speak to your insurance coverage agent when you haven’t already performed so to cost out your protection wants when the anniversary of your coverage (or insurance policies) happens.
Monitor Legislative and Regulatory Developments
With a brand new administration, issues are going to vary, and can seemingly affect what you are promoting. Be sure to look at developments rigorously so you’ll be able to take motion as wanted.
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