IRS Establishes Mileage Rates for 2023

The IRS has issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. In a statement issued on Dec. 29, the IRS said that beginning on January 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) is:   65.5 cents per mile driven for business use, up 3 cents from the midyear increase setting the rate for the second half of 2022.   22 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, consistent with the increased midyear rate set for the second half of 2022.   14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2022.   These rates apply to electric and hybrid-electric automobiles, as well as…read more...

New Business? Start With Payroll

Congratulations — you're a business owner. Now it's time to get some help — employees. But before you advertise for help, you need to get yourself up to speed with the entire process of paying your employees. Here's what you need to do before tackling payroll: Prepare information Hiring employees means paperwork. Get an Employer Identification Number from the IRS. Use it to report taxes to the IRS and state agencies. Obtain a state or local business ID if necessary. Contact local and state government officials to see whether you need an additional tax ID number. Obtain essential information from each new hire. You'll need a Social Security number or an Individual Taxpayer Identification Number. Make sure you get each employee to fill out Form I-9 to verify employee eligibility. For proper payroll processing, each employee will have to fill out Form W-4 as well. Keep an eye on classification…read more...