April 7, 2019

Awards are their own reward.

New tax laws have made it more costly for employers to reward their employees for exemplary service, years on the job or just for being an awesome someone to have in the office. Why? Because all the old standbys are now taxable! Good old-fashioned cash? Taxable. Gift cards, lodging, tickets on the fifty-yard line? Taxable. […]

New tax laws have made it more costly for employers to reward their employees for exemplary service, years on the job or just for being an awesome someone to have in the office. Why? Because all the old standbys are now taxable!

Good old-fashioned cash? Taxable. Gift cards, lodging, tickets on the fifty-yard line? Taxable. Stock in the company? Bonds? Pretty much any non-tangible property you can think of as a reward for achievement? They’re all taxable. Of course, we’re not recommending you forego rewards as a way of doing business. Far from it. What we do recommend going forward is to be sure you know the true cost of your reward and operate accordingly.

Confused? Have questions? Feel free to talk with us about this and any other tax or accounting questions at Go Figure.

Feeling generous? How generous?

Here’s a shocker some employers are completely unaware of: Those of you who are accustomed to providing completely free or partially subsidized transit passes for your employees can no longer deduct that generosity as a business expense. Same goes with free or subsidized van pools, free or subsidized parking. They are no longer deductible business […]

Here’s a shocker some employers are completely unaware of: Those of you who are accustomed to providing completely free or partially subsidized transit passes for your employees can no longer deduct that generosity as a business expense. Same goes with free or subsidized van pools, free or subsidized parking. They are no longer deductible business expenses. In fact, by definition, they are literally gifts given from the kindness of your heart. On the other hand, employees who benefit in those ways from their employer’s generosity are not required to treat it as income.

Confused? Have questions? Feel free to talk with us about this and any other tax or accounting questions at Go Figure.

April 2, 2019

New tax laws now prohibit write-offs for entertainment expenses. Period.

You can still take your clients to dinner and deduct 50 percent for it—if it’s properly documented with the who, what, where, why and how it’s business-related. But the show for after dinner, or the tickets to the concert or the game can no longer be deducted.
Same thing goes for business-related dues or memberships for pleasure, recreation or any other social purpose. Sorry golfers—keep your clubs in the bag or be prepared to pay the memberships, cart, green and whatever other fees may apply.

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