More organizations are hiring military veterans every day. In addition to benefiting from the skills, dedication and experience that veterans offer, qualifying employers can earn a tax credit for their commitment to hiring, training and retaining veterans. Many of our clients, particularly government contractors, hire military veterans. Let’s look at some of the tax credits available to employers who hire veterans.
Computer software drives the world. Businesses use software to account for transactions, communicate with colleagues and customers, and design and manufacture new products. One thing is clear: without software, we’d be lost. Accounting for the costs associated with software acquisition, however, can be less than straightforward. In this article, we’ll outline some things a business will need to consider when acquiring or implementing new software for its own use and how to account for those transactions.
Subscribe to our blog, and we'll send articles straight to your inbox when they're published.
Social Security and Medicare Tax As of January 1, 2019, the maximum amount of annual earnings subject to the Social Security increases to $132,900 (from $128,400 in 2018). There is no limit on the amount of earnings subject to the Medicare tax. The maximum Social Security tax to be deducted from an employee’s compensation during 2019 will be $8,239.80 (6.2% x $132,900).
If your business employs veterans, you might be eligible for a HIRE Vets Medallion Award. Businesses that earn this award are recognized for their leadership in recruiting, employing and retaining veterans. About HIRE Vets Created in 2017, President Trump signed into law the Honoring Investments Recruiting and Employing American Military Veterans Act, more commonly known as HIRE Vets. The program is overseen by the U.S. Department of Labor and while it is not a monetary award, it is the only federal award program that recognizes businesses for their commitment to veteran careers. (Note: there are tax credits available to businesses that hire veterans.) Is Your Business Eligible for a 2019 Award? You can visit the www.hirevets.gov website to review specific program criteria and determine whether your business is eligible for the HIRE Vets Medallion Award. There are awards for small, mid-sized and large employers. You can download a detailed award criteria checklist, along with sample applications, here.
On December 17, 2018, the Small Business Runway Extension Act of 2018 was signed into law, increasing the measurement of a small business' size status. Prior to this, a business' small business status was determined based on three years of average gross receipts. Once the business’s three-year average gross receipts exceeded a specific dollar threshold, that business was considered ready to enter the open marketplace.
As 2019 gets closer, businesses and nonprofits across the country are struggling to understand how to calculate how new parking expense rules will impact their tax liability. The changes to parking expense deductibility and the unrelated business income tax for nonprofits are part of the changes under the Tax Cuts and Jobs Act (TCJA).