Know the Rules on Business Travel

  Are you working on this year's tax return or planning for the future? Either way, you should know the rules on business travel tax deductions.   According to the IRS, whether someone travels for work once a year or once a month, figuring out travel expense tax write-offs might seem confusing. Fortunately, the IRS has information to help all business travelers properly claim these valuable deductions while avoiding erroneous deductions that could lead to penalties.   The main travel tax details Business travel deductions are available when employees must travel away from their tax home or main place of work for business reasons. A taxpayer is traveling away from home if they are away for longer than an ordinary day's work and they need to sleep to meet the demands of their work while away.   You can't go over the top and just send the government the bill, however. The IRS reminds…read more...

Payroll Tax Rates and Contribution Limits for 2023

  Below are federal payroll tax rates and benefits contribution limits for 2023.   Social Security tax In 2023, the Social Security tax rate is 6.2% for employers and employees, unchanged from 2022. The Social Security wage base is $160,200 for employers and employees, increasing from $147,000 in 2022. Self-employed people must pay 12.4% on the first $160,200.   Medicare tax In 2023, the Medicare tax rate for employers and employees is 1.45% of all wages, unchanged from 2022. Self-employed people must pay 2.9% on all net earnings.   Additional Medicare tax In 2023, the additional Medicare tax remains unchanged at 0.9%. This tax applies to wages and self-employment income over certain thresholds ($200,000 for single filers and $250,000 for joint filers).   401(k) limits In 2023, the maximum contributions are as follows: Employee (age 49 or younger) = $22,500, up from $20,500 in 2022. Employee catch-up (age 50 or older) = $7,500,…read more...