Your business is generally required to issue Form 1099-MISC to all unincorporated service providers to whom it pays $600 or more during the calendar year. Unincorporated service providers include sole proprietors, partnerships, and LLCs not electing to be taxed as a C Corporation or S Corporation.
While not required, separating various scenarios for meals and entertainment is recommended. As a follow-up to our November article, Rules for Meals and Entertainment, here are some best practices for recording and deducting meals and entertainment expenses.
Several changes to the rules for deducting meals and entertainment were made by the Tax Cuts and Jobs Act (TCJA). Prior to the TCJA, meals and entertainment were either 100% or 50% deductible, depending on the nature of the expense.
Major revisions to the withholding tables were made in January 2018 as a result of the 2017 Tax Cuts and Jobs Act. A new version of Form W-4 is expected to be released in November.
The company auto is still a valued fringe benefit. Part II of this article focuses on the rules for personal use valuation, recordkeeping requirements, and business auto deductions for the employer.
For years, many small to medium-sized companies have considered company-owned autos to be a “popular perk” or fringe benefit. Having a company-owned auto yields many non-tax as well as tax benefits for the company and the employee.
Corporations, S Corporations, partnerships (including limited liability companies) and sole proprietorships all have some impactful implications from the Tax Cuts and Jobs Acts (TCJA).
