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INDUSTRY INSIGHTS & NEWS
Upcoming Changes to Employer-Provided Meal Deductions: What You Need to Know
For most organizations, the tax rules around employer-provided meals are about to get stricter. The One Big Beautiful Bill Act will uphold the planned elimination of the employer deduction for these meals after 2025 — as originally set by the Tax Cuts and Jobs Act . Beginning in 2026, employers will only be able to fully deduct the cost of eligible meals if they’re sold to employees . This means meals provided for convenience, meetings, or company events will generally no lo
11 hours ago1 min read
Big News for Employers: Enhanced Child Care Tax Credit Under the One Big Beautiful Bill Act
The recently passed One Big Beautiful Bill Act (OBBBA) brings a significant boost to the employer-provided child care tax credit, making it more valuable for businesses that support employees with child care benefits. What’s Changing? For eligible amounts paid or incurred after December 31, 2025: The credit increases from 25% to 40% of qualified expenditures. The maximum dollar amount rises from $150,000 to $500,000 . For qualifying small businesses, the credit jumps to 50%
Sep 191 min read
Understanding ERISA Requirements: Why Plan Documents and SPDs Matter
If your organization offers employer-sponsored retirement or welfare benefit plans, you’re likely subject to the Employee Retirement Income Security Act (ERISA) . This important law establishes specific requirements designed to protect participants and ensure transparency — and two key components are the plan document and the summary plan description (SPD) . A plan document serves as the formal blueprint of your benefit plan. It outlines the rights of participants and benef
Aug 82 min read
Staying Compliant with Employment Taxes: A Quick Refresher for Employers
Even seasoned employers can’t afford to overlook the importance of employment tax compliance. While your organization may have been handling payroll for years, the rules and requirements surrounding employment taxes demand ongoing attention. Most employers are required to report five types of employment taxes on Form 941, Employer’s Quarterly Federal Tax Return. However, if your business has a smaller tax liability, you may qualify to file Form 944 , Employer’s Annual Federal
May 291 min read
Planning for year-end gifts with the gift tax annual exclusion
As we approach the holidays and the end of the year, many people may want to make gifts of cash or stock to their loved ones. By properly using the annual exclusion, gifts to family members and loved ones can reduce the size of your taxable estate, within generous limits, without triggering any estate or gift tax. The exclusion amount for 2021 is $15,000. The exclusion covers gifts you make to each recipient each year. Therefore, a taxpayer with three children can transfer $
Sep 10, 20213 min read
Scholarships are usually tax free but they may result in taxable income
If your child is fortunate enough to be awarded a scholarship, you may wonder about the tax implications. Fortunately, scholarships (and fellowships) are generally tax free for students at elementary, middle and high schools, as well as those attending college, graduate school or accredited vocational schools. It doesn’t matter if the scholarship makes a direct payment to the individual or reduces tuition. Requirements for tax-free treatment However, scholarships are not alwa
Sep 3, 20212 min read
Are you a nonworking spouse? You may still be able to contribute to an IRA
Married couples may not be able to save as much as they need for retirement when one spouse doesn’t work outside the home — perhaps so that spouse can take care of children or elderly parents. In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there’s an exception involving a “spousal” IRA. It allows contributions to be made for nonworking spouses. For 2021, the amount that an eligible married couple can contribute to an IRA for a nonwo
Aug 24, 20212 min read
IRS audits may be increasing, so be prepared
The IRS just released its audit statistics for the 2020 fiscal year and fewer taxpayers had their returns examined as compared with prior years. But even though a small percentage of returns are being chosen for audit these days, that will be little consolation if yours is one of them. Latest statistics Overall, just 0.5% of individual tax returns were audited in 2020. However, as in the past, those with higher incomes were audited at higher rates. For example, in 2020, 2.2%
Jul 11, 20213 min read
A nonworking spouse can still have an IRA
It’s often difficult for married couples to save as much as they need for retirement when one spouse doesn’t work outside the home — perhaps so that spouse can take care of children or elderly parents. In general, an IRA contribution is allowed only if a taxpayer has compensation. However, an exception involves a “spousal” IRA. It allows a contribution to be made for a nonworking spouse. Under the spousal IRA rules, the amount that a married couple can contribute to an IRA fo
Jun 10, 20202 min read
What will your marginal income tax rate be?
While the Tax Cuts and Jobs Act (TCJA) generally reduced individual tax rates for 2018 through 2025, some taxpayers could see their taxes go up due to reductions or eliminations of certain tax breaks — and, in some cases, due to their filing status. But some may see additional tax savings due to their filing status. Unmarried vs. married taxpayers In an effort to further eliminate the marriage “penalty,” the TCJA made changes to some of the middle tax brackets. As a result,
Feb 19, 20192 min read
Bruce & Company P.S.C. is an accounting and financial consulting firm in Madisonville, Kentucky. Bruce & Company proudly serves Evansville, Owensboro, Hopkinsville, Madisonville, Hopkins County, Kentucky, and across the United States. Search for certified public accountant near me. At Bruce & Company, we offer tax compliance and consulting, quality auditing and assurance services, audits of employee benefit plans and options, payroll processing, Quickbooks consulting, personal financial planning, and general accounting services.
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