This Crossed My Desk from AIPB

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.

If you think you may need to have your deductions changed based on the calculator, reach out to your supervisor, payroll manager, or HR department.

Hharpp Business Services offers cloud based payroll programs, which are easy to use. Contact us at 702-342-8844 if you have any questions.