Deducting Business Expenses: Separating Fact From Myth

Kollath CPA

When you’re filing your tax returns, what expenses can you deduct from business income? To start with, a business expense must be both ordinary and necessary to be deductible, according to the IRS. Deducting Business Expenses: Separating Fact From Myth.

Choosing between a low- or high-deductible health plan


Whether you’re an employer looking for group plan options or an individual looking for yourself and your family, the question that is likely on your mind is: “Is it better to have a high deductible health plan (HDHP) or a low deductible health plan (LDHP)?”.


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What Are Pre-tax Deductions?

Patriot Software

Then you might be wondering when exactly you deduct the employee’s contributions—before or after taxes. For accurate withholding, understand what are pre-tax deductions. Do you need to withhold money from employee wages beyond taxes (e.g., garnishments or benefits)?

Insurance Deductible Reset: End of Year Tips


As the time nears for organizations to renew their health plan , many employees may become concerned if their health insurance deductibles are also set to renew.

What to do if your zero-deductible health plan goes away


One option that appeals to many employers is the zero-deductible health plan because it means the insurance company will start accepting claims from the very beginning. However, premium costs and deductibles are inversely related, so a plan with no or low deductibles means higher premiums.

Do Health Insurance Deductibles Carry Over? | BerniePortal


When an organization renews health plans in the middle of the year, employees might worry that their deductible will reset.

IRS Announces 2023 Limits for Health Savings Accounts, High-Deductible Health Plans and Excepted Benefit HRAs

McDermott Will & Emery Employee Benefits

Recently, the Internal Revenue Service (IRS) announced (See Revenue Procedure 2022-24) cost-of-living adjustments to the applicable dollar limits for health savings accounts (HSAs), high-deductible health plans (HDHPs) and excepted benefit health reimbursement arrangements (HRAs) for 2023.

Pre-tax deductions vs. Post-tax Deductions

Benefit Resource Inc.

Not all payroll deductions are created equal. Some people (although not many) may engage in a heated debate on the value of pre-tax deductions vs. post-tax deductions. Colleagues (even in our own organization) have asked “Why do we need post-tax deductions?” What is a pre-tax deduction? A pre-tax deduction allows an individual to set aside money from their pay before paying taxes. What’s the catch with pre-tax deductions?

How to make a high deductible health plan work for you


It’s no secret that the use of high deductible health plans (HDHPs) continues to skyrocket. For 2020, the IRS defines an HDHP as any plan with a deductible of at least $1,400 for an individual or $2,800 for a family.

Choosing between high vs low deductible health plans


high deductible health plan HDHP gchra ldhp deductibleInsurance is often confusing. Here’s a scenario for you: It’s mid-November. Open enrollment is here and you’re trying to figure out which insurance plan to choose.

“Can I Deduct Medical Expenses Not Covered by My Insurance Plan?” – Answer Inside


What if we told you there was a way you can deduct all of the medical expenses that are not covered by your insurance plan. We’re talking about things like deductibles, co-insurance, doctor visits, doctor’s who don’t take insurance, eyeglasses, therapy, etc.

Squeeze under interest deduction cap

Business Management Daily

Watch out for a new deduction limit for business interest. Under the Tax Cuts and Jobs Act, this deduction can’t exceed 30% of an affected business’s adjusted taxable income. The post Squeeze under interest deduction cap appeared first on Business Management Daily. Small Business Tax Small Business Tax Deduction Strategies

Squeeze under interest deduction cap

Business Management Daily

Watch out for a new deduction limit for business interest. Under the Tax Cuts and Jobs Act, this deduction can’t exceed 30% of an affected business’s adjusted taxable income. The post Squeeze under interest deduction cap appeared first on Business Management Daily. Small Business Tax Small Business Tax Deduction Strategies

Does a group coverage HRA require a high deductible health plan?


When researching different health reimbursement arrangement (HRA) options, employers may notice that when group coverage HRAs (GCHRAs) are mentioned high deductible health plans (HDHPs) are discussed too. Premium Reimbursement High Deductible Health Plans Group Coverage HRA

How to Tell If Your High-Deductible Health Plan Is HSA Qualified


Employers offering a high deductible health plan (HDHP) have several ways to supplement the low-coverage and make the benefit more meaningful. HSA Individual Health Insurance high deductible health plan

How Much Can You Save with a Higher Deductible Health Insurance Plan?


We spend a lot of time talking about how you can save money by raising the deductible on your health insurance plan. In case you're still skeptical, let's go over some real numbers from an online quote engine so we can see how a high deductible health plan (HDHP) works in action.

How S-corp owners can deduct health insurance


In this article, we’ll go over everything S-corp owners must do to receive company-sponsored health insurance, how to properly deduct those expenses from their taxes, and how a health reimbursement arrangement (HRA) affects their eligibility.

High deductible health plan: is it right for my organization?


One option is a high deductible health plan (HDHP). Employers have a number of health plan options to choose from when it comes to offering a health benefit to employees.

Congress Reopens Door For HSA With No-Deductible Telehealth, But With a Hole

Proskauer's Employee Benefits & Executive Compensa

Effective April 1, 2022, high-deductible health plans can once again offer first-dollar coverage for telehealth and other remote services without making participants ineligible for health savings account (“HSA”) contributions.

Are Payroll Deductions for Health Insurance Pre-Tax? The Answer You Need to Know

Patriot Software

If you have your employees contribute to their premiums, you have to know how to deduct the cost from their gross pay. But, are payroll deductions for health insurance pre-tax? Providing health insurance benefits to your employees can leave you with a lot of questions.

Special analysis: Business meals deduction

Business Management Daily

The Tax Cuts and Jobs Act’s extension of the 50% corporate deduction limit to convenience meals has allowed the IRS to refine its previous guidance. The post Special analysis: Business meals deduction appeared first on Business Management Daily. Centerpiece Office Management Payroll Management

FAQ: What is an HSA High Deductible Health Plan (HDHP)?


A high deductible health plan (HDHP) paired with a Health Savings Account (HSA) is growing in popularity because it allows employees to pay for medical expenses tax-free.

Remote Working and Deductible Office Expenses in Australia

Global People Strategist

The Australian Taxation Office (ATO) has created short-cuts for employers and workers in order to deduct certain home office expenses. For example, employees may deduct a rate of 52 cents per hour for operating costs in addition to $50 per year for work related phone and Internet costs.

Home Office Tax Deduction for Remote Employees: Everything You Need to Know

Take It Personel-ly

If you recently became an employee who works from home, you might be wondering if you can use your home office as a tax deduction. Figuring out the home office tax deduction for a remote employee can be confusing, but we’re here to help break […].

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Tax exclusions vs. tax deductions vs. tax credits in healthcare


Savvy employers and consumers can take advantage of several types of tax reductions when it comes to healthcare costs. Taxation

Ten Tax Planning Tips for 2022

Money Talk

Since there is no longer a non-itemizer’s charitable deduction in 2022 and only about 10% of tax filers itemize, you’ll probably have fewer receipts to save. Determine “Bunching” Potential - Bunching is a legal tax minimization strategy where taxpayers aggregate sufficient tax-deductible items to exceed the standard deduction for their age and tax filing status. income tax IRS tax deductions tax planning taxes

Taxes 179

Secure deductions at assisted living facilities

Business Management Daily

Although nursing expenses are generally deductible as medical expenses, the lines can get blurred. The post Secure deductions at assisted living facilities appeared first on Business Management Daily. Small Business Tax Small Business Tax Deduction StrategiesSuppose that a family member has to move into an assisted living facility.

Don’t shy away from a high-deductible health plan because of the name

Benefit Resource Inc.

“ HIGH-DEDUCTIBLE health plan? But first…what IS a deductible? In simple terms, a deductible is the amount you pay out-of-pocket for health care expenses before your health insurance starts paying. When should you consider a high-deductible health plan (HDHP)?

Are Higher Deductibles in Aviation Insurance a Good Idea?


Many savvy aircraft owners / risk managers ask if accepting higher deductibles on their aviation insurance will result in a decrease in premium. Aviation Hull & Liability Policies While it would seem increasing the amount of risk you are willing to accept by taking a higher deductible on your aircraft would result in a lower premium, it actually makes very little difference and therefore rarely a good move from a cost benefit perspective.

Final Paycheck Has Too Many Deductions – Ask #HR Bartender

HR Bartender

Today’s reader note is questioning the number of deductions on their final pay. Now, my deductions are through the roof – making my net pay very small. Nagele-Piazza] Employers need to make sure they are deducting taxes appropriately, whether it is regular income, bonuses, or other supplemental wages. The post Final Paycheck Has Too Many Deductions – Ask #HR Bartender appeared first on hr bartender. Final paychecks are always a source of employee questions.

New IRS Guidance Clarifies Deductible PPP Loan Expenses | BerniePortal


In November 2020, the U.S. Treasury Department and IRS released guidance that clarified the tax treatment of Paycheck Protection Program (PPP) loan expenses. Here’s what HR teams and small businesses need to know about this latest update. HR COVID-19

Understanding Payroll Deductions and Employee Benefits Taxes


Employers have the responsibility to accurately calculate payroll deductions and pay employee benefits taxes. Payroll Deductions. There are some payroll deductions that are completely necessary and you must calculate them correctly. To help you to calculate your deductions you can use this payroll deductions online calculator. What employee benefits can you deduct on your tax return? Cafeteria plans are also tax deductible.

What are employees supposed to do with their excess pretax deductions?

Business Management Daily

Transportation fringes are treated a bit differently from other benefits employees can purchase with pretax deductions. But there is a huge glitch: You can no longer deduct the cost of providing transportation fringes to employees on your Form 1120.

Deductibles & Co-Insurance: Personalize Your Benefits (Infographic)


An infographic showing how Honeybee allows users to personalize their benefits, and how it relates to deductibles and co-insurance. The post Deductibles & Co-Insurance: Personalize Your Benefits (Infographic) appeared first on Honeybee Benefits.

Does an HRA require an HDHP?


When researching cost-effective health benefit solutions for your organization, you’ve probably come across health reimbursement arrangements (HRAs) and high deductible health plans (HDHPs). Premium Reimbursement High Deductible Health Plans Group Coverage HRA

High-Deductible HRAs - A Way to Meet the Needs of Employees


A health reimbursement arrangement (HRA) is an IRS-approved, employer-funded, health benefit used to reimburse employees for out-of-pocket medical expenses and personal health insurance premiums.

Why “high deductible” shouldn’t be treated like a dirty word

Benefit Resource Inc.

The term “high deductible health plan” has often carried with it a negative connotation for employees. In fact, “Benefits consultants recommend providing HDHP enrollees with health savings accounts (HSAs) so they’ll have money available for necessary services not covered by the HDHP before the deductible is met,” according to the SHRM article. Additionally, a “high deductible” is not as high as you think.