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Tag: business expenses

Is it legal to Cut an Employee’s Pay and Hours Because of COVID-19?

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Throughout the past few weeks the coronavirus has left the world empty and desolate. With lockdown measures and social distancing orders in place, people refrain from going to restaurants, communicating in-person, and going to work. As the nation adjusts to this austere new lifestyle, consumerism has slowed down immensely. Consumers are only buying the essentials, which means they aren’t spending like they used to. Of course, when people aren’t spending money, businesses don’t make money. Therefore, many business owners have had to make tough decisions to stay afloat.

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Important Employer Tax Filing Dates 2020

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* As of March 21st, 2020, The Treasury Department and Internal Revenue Service extended the federal income tax filing due date from April 15, 2020, to July, 15, 2020.

Taxes are difficult for a lot of people, and it’s even tougher when you own a company. Not only do business owners have to track expenses for taxes and other tax deductions, but they must also fill out multiple forms throughout the year for tax filing purposes. With many forms and deadlines, it is difficult to remember when certain IRS forms are due. We don’t want you to stress, so we’ve mapped out all of the important dates so that you know exactly what to do and when to do it. 

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Your Guide to Tax Deductions for Small Businesses

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If you run a small business, you’re going to want to file your tax deductions accurately. Properly filing tax deductions will give you a larger tax return. Unfortunately some businesses are not keeping accurate track of their records. As a result, there are a lot of tax write offs that people miss. To ensure that you benefit from deductions, you must keep records of all aspects of your business, including expenses. Once you’re organized and have valuable data to back up your claims, you may deduct many business expenses.

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The Tax Write-Offs You’re Missing

Contributed by: Rachel Cottam

A piggy bank surrounded by coins.

Tax season can be stressful, but it’s worth it when Uncle Sam gives you a big refund. Unfortunately, many U.S. taxpayers leave too much money on the return table—and you might be one of them.  

Understanding the best ways to prepare taxes and knowing which tax write-offs you’re missing will help you avoid this costly mistake.

Just remember: if you are going to claim any deduction, you need to have records. Don’t try to claim write-offs you have no proof of. Keep pristine accounting books and physical or digital documentation of all relevant receipts. Even if you’re handing your taxes off to a professional, they’ll need a paper trail.

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IRS Receipts and Records That You Should Keep & How to Store Them


The  IRS allows you to choose any record keeping system for your business’ income and expenses. This means that you can keep records in a file cabinet or you can choose an electronic program. Either way, the choice is yours.

Depending on what business you are in, you may have to keep certain records for federal tax purposes. The IRS wants businesses to retain specific business documents including purchases, payroll, and other transactions. These records will support the entries in your books and on your tax return.

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Business Math: Calculating Mileage When Using a Personal Vehicle

Calculating mileage reimbursement starts by knowing when you actually need to reimburse your employees. Although many employers think that they have to pay for mileage , the federal Government does not require you to reimburse employees. However, there are certain states that have regulations. California, for instance, requires employers to reimburse employees for any losses incurred while completing work duties

The IRS sets the mileage reimbursement rate for employees who drive their own Privately Owned Vehicles (POV), but this rate is a guideline for employers and a tax deduction opportunity for employees. You can choose whether or not you want to pay your employees more or less than the IRS rate. Also, keep in mind that you have to follow your state’s reimbursement regulations as well. In Addition to that, under FLSA regulation, you must pay your employees the standard minimum wage. If their expenses lead them to an hourly rate below minimum wage, you will have to assist them with the cost.

The IRS has a guideline for reimbursable and non reimbursable expenses when an employee uses their own POV for business duties. Here are some reimbursable and non reimbursable expenses:

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States Which Require Expense Reimbursement Now Include Illinois

In the United States, expense reimbursement is only required in a couple of cases.

1. In the event an employment contract contains expense reimbursement, an employer is responsible for expense payments.

2. When employees pay for business related expenses, they are kicking back money to their employers. These kickbacks must be subtracted from an employee’s wages to accurately calculate minimum wage. If employees are not paid at least minimum wage, free and clear, the employer is in violation of the FLSA.

However, some states have their own laws surrounding expense reimbursement. Those states include: Illinois, California, Massachusetts, Montana, Pennsylvania, New York, Iowa, and the District of Columbia. Illinois was the newest addition this year.

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Content Marketing Expenses in the Marketing Budget

mareting expenses in the marketing budget

Contributed by Ashley Lipman

Content marketing is an important focus for modern businesses. Effective content can drive traffic and create conversions from relevant leads. As such, it’s no wonder that a significant portion of a startup’s marketing budget is allocated to content marketing.

While generally not as expensive as advertising, spending still needs to be monitored. Here are some ways to keep track of content marketing expenses, set metrics, and measure KPIs.

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Online Expense Tracking Is a Must for Businesses

Travel and entertainment costs represent a large chunk of the budget for most businesses. In fact, they are the second largest business expense, just behind payroll.

You would think that businesses would take the management of these expenses very seriously, given that they spend so much money on them but, surprisingly, not all of them do. Most businesses still manage their reimbursable expenses using antiquated methods like pen and paper or spreadsheets.

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