Businesses that have employees must pay wages and salaries to their employees, and the employer must collect federal employee income taxes and the employee's share of social security (FICA) from these wages and salaries, add the employer's "matching share" of FICA, and then deposit these taxes with the IRS. The Employer must file a quarterly return with the IRS (Form 941) reporting all wages and salaries paid, all tax deposits made during the quarter, and pay any balance due with the quarterly return.
The Recession took a heavy toll on businesses throughout the country, with many ...
Congress enacted the new Section 199A 20% profit deduction for the owners of pass-through businesses, and which include Subchapter S corporations, LLCs, sole proprietorships, and even certain trusts. Section 199A is intended to provide a deduction to owners of these pass-through business entities who do not otherwise benefit from the new 21% flat tax Congress has given to corporations under the new tax law. While Section 199A is intended to benefit these generally smaller types of business entities and their owners, the new tax law is riddled with complexity and exceptions, and so ...
After months of eager anticipation, today the Department of the Treasury released regulations defining and refining certain requirements set forth in the "Opportunity Zone" law.
While the Opportunity Zone statute provided a framework for tax-deferred investments, most projects have been on hold pending the regulatory framework. The regulations released today answer many questions, while others remain unaddressed. According to today's release, more guidance will be forthcoming by the end of the year.
Some highlights of the proposed regulations include:
Substantial ...
The Policy Division of the South Carolina Department of Revenue has issued a final revenue ruling, SC Revenue Ruling #18-14, addressing retailers without a physical presence in South Carolina. The ruling comes on the heels of the United States Supreme Court decision in South Dakota v. Wayfair, Inc., 585 U.S. ___, 138 S. Ct. 2080 (2018), which found that retailers without a physical presence in a state can be required to collect and remit sales and use tax. The Department of Revenue has also posted a series of frequently asked questions to its website.
Prior to issuing SC Revenue Ruling ...
Changes have been made to the income tax withholding tables and estimated tax rates as a result of the new Tax Cuts and Jobs Act. Taxpayers should pay extra attention now to their tax withholdings and estimated tax payments in order to avoid penalties.
Taxpayers can generally avoid underwithholding/estimated tax penalties if they:
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- Pay 90% of the current year liability, or
- Pay 100% of the prior year liability.
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However, If a taxpayer’s adjusted gross income for the prior year was more than $150,000, the taxpayer must then have withholdings or estimated tax payments for the current year ...
A health wellness program is broadly defined as any program of health promotion or disease prevention. In a recent article entitled "Health Wellness Programs - An Introduction and a Resource", I reviewed certain characteristics common to health wellness programs (hereinafter referred to as "Wellness Programs"). In this article, I am going to review the classification of Wellness Programs under the Health Insurance Portability and Accountability Act ("HIPAA").
From a legal perspective, Wellness Programs are initially divided into two classes: (1) programs that are part of (or ...
The IRS has issued Proposed Regulations now under the new Section 199A 20% profit deduction for pass-through entities. The Proposed Regulations provide important guidance on the definition of "Qualified Business Income" - which is the starting point for determining the amount of the deduction.
New Section 199A, adopted by Congress under the Tax Cuts and Jobs Act (TCJA) and effective January 1, 2018, provides a 20% deduction for pass-through businesses - i.e. businesses that are not corporations. With the corporate tax rate under the TCJA being reduced to a flat 21%, the 20 ...
The Policy Division of the South Carolina Department of Revenue has issued a draft revenue ruling addressing retailers without a physical presence in South Carolina. Comments on the draft ruling are due by August 27, 2018, and a conference, if requested, will be held on August 29, 2018 at 10:00 am. Under the draft revenue ruling, South Carolina will require "remote sellers" who have "economic nexus" to collect and remit South Carolina sales and use tax on a prospective basis beginning October 1, 2018.
A remote seller is a retailer with no physical presence in South Carolina (e.g ...
On August 8th, the IRS released its much-awaited Proposed Regulations on the new Section 199A 20% profit deduction for pass-through businesses. The new deduction applies to essentially all types of businesses other than C corporations, and was created under the 2017 Tax Cuts and Jobs Act. Individuals can begin claiming the deduction on their upcoming 2018 tax returns. The Proposed Regulations issued by the IRS, and released through Announcement IR-2018-162, provide important guidance to taxpayers and tax practitioners alike on this new federal income tax deduction.
The ...
South Carolina counties and municipalities are authorized to impose business license taxes on the "gross income" of a business. On August 8, 2018 the South Carolina Supreme Court issued a major decision, Todd Olds v. City of Goose Creek, construing what constitutes gross income under a municipal business license ordinance.
In the case, a licensed realtor was in the business of flipping houses. He obtained a business license from the City of Goose Creek (the "City") and reported the gain he recognized on his flips as his gross income for business license purposes. The City determined ...