Business Taxes For 2011 | Finance Reference

Considering the fact that there is a lot of uncertainty going into the tax season of 2011, it would be wise to enlist the tax services of a payroll company to handle the upcoming changes. Instead of trying to sort out the complicated and constantly changing world of business taxes, a safe and secure option is to entrust your tax preparation to a company that has a proven track record of helping businesses file their taxes accurately and on time.

Business tax laws seem to get more complex every year and 2011 is no exception. There are many new rules and deductions either already in place or in the works for the 2011 tax season that business owners may not be aware of. There are proposed tax cuts on the table that will allow for additional depreciation claims on business equipment purchases and a higher deduction for the start-up costs of small businesses.

Companies that have a health reimbursement, flexible spending or health savings account can no longer reimburse medications on a tax-free basis unless they are prescribed by a doctor. Over-the-counter medications can no longer be claimed unless the employee has a prescription.

Penalties for non-medical reimbursements for most workers will double to 20 percent, so it is important to notify employees before they are penalized. While we are on the topic of health insurance, starting in 2011, W-2 forms are required to have the value of the employees health insurance reported on them. This is required regardless of who pays for the health care services. If it is a company-offered plan, it has to be reported.

If your business started a Comprehensive Workplace Wellness Program after March 23, 2010, and has less than 100 employees that work more than 25 hours a week, you may be eligible for the reimbursement of at least a portion of the cost of the program. The federal government has set aside 0 million dollars to help fund wellness programs ranging from stress management to helping employees quit smoking. These grants can currently be used to fund a program for up to 5 years.

Businesses using a 3rd party payment processor need to keep good records of their transactions. Companies like Paypal are now required to report payments to merchants if they exceed 200 transactions per year or if the total amount of the transactions exceeds ,000. This extra scrutiny by the IRS is sure to cause small business owners extra difficulty come tax time if they do not pay close attention.

Considering how murky the waters are this tax season, it would be a good idea to hire a professional payroll company to help you safely navigate the depths. Let someone else worry about the complicated tax laws while you concentrate on your business. The countless hours normally spent handing payroll and taxes can be used to work on other more important aspects of your business. Choosing a company with a proven track record in both tax preparation and customer service can go a long way in protecting your business.

Source: http://www.maysabelnyo.com/business-taxes-for-2011.html/

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