I will hire my 15-year-old daughter to work in my single-member LLC business, and I expect to pay her about $12,000 this year. Do I pay her through payroll checks and file a W-2?”
All in employees
IRS Says Your Independent Contractors Are Employees?
Depending on the extent to which you have complied with IRS reporting requirements, and the strength of your arguments for why your workers are really independent contractors rather than employees, CSP agreements will vary.
Qualified Small Employer Health Reimbursement Arrangements: What to look for and how to protect yourself
Employers can reimburse employees for legitimate out-of-pocket medical expenses and report these reimbursed medical expenses as a business deduction.
Tax-free reimbursements of business expenses: Accountable plan basics
Businesses can reimburse owners and employees for out-of-pocket expenses under an accountable plan, a set of rules and processes that allow tax-free reimbursements of certain business expenses. The best time to set up an accountable plan is now.
Hiring family members: Tax-saving strategies
Sole proprietors may be able to reduce their tax burden by hiring their children, spouse, or parents to work as bona fide employees.
Reimbursing Employees for Business Expenses
If you have employees, you can reimburse or give them an advance or allowance for business expenses, including but not limited to ordinary and necessary transportation, business entertainment, travel, meals and lodging expenses. These types of payments can either be treated under an accountable or nonaccountable plan. Below, are the requirements for both types of plans.
Employee Gatherings May Be Tax Deductible
Do you throw a holiday party, summer outing or a similar type of event for your employees? The expense of providing recreational, social or similar activities (including the use of a facility) for your employees is deductible and isn’t subject to the 50% limit. However, the benefit must be primarily for employees who aren’t highly compensated.