This week’s edition of The General Ledger from the American Institute for Professional Bookkeepers (AIPB) was a real eye opener. Lots of changes and clarification with the new tax laws.
I thought this was going to be an ongoing conversation as our tax professionals dig deeper into the new laws.
So, here is an excerpt from today’s publication
“Health Savings Accounts: The 2018 annual contribution limit for self-only coverage is $3,450; family coverage, $6,850. A high-deductible health plan is one with a deductible of at least $1,350 for self-only coverage, $2,700 for family coverage. The annual out-of-pocket expense maximum is $6,650 for self-only, and $13,300 for family.”
Here is a little clarification on what is classified as meals and what is entertainment.
” For decades, most of us have thought of taking a customer out to lunch as a business meal, but the new tax law includes this as entertainment— and entertainment of customers or anyone else is no longer deductible as a business expense. What is still deductible as a business expense is an employer party, picnic or meal for employees on the employer’s premises.”
Not that I agree. With the trend moving toward home offices, instead of brick and mortar locations; business meetings are being conducted over coffee or lunch. This should be allowable as 50% deductible as was before. Because they have home offices, and don’t see clients, at the place of business, I believe this ruling should be reviewed.
Last but not least, with the new federal withholding changes, employees should review their payroll deductions. Here is a link to the IRS withholding calculator.
Hharpp Business Services offers cloud based payroll programs, which are easy to use. Contact us at 702-342-8844 if you have any questions.