January 7 2017
There are some changes you'll want to know for budgeting and financial planning purposes in the new year. Some result in more expenses for your business, but there are also some that will benefit you. Here's what you need to know for 2017:
Changes to tax deadlines
Congress passed two laws that have changed the deadlines for many businesses to file important documents and returns with the IRS.
1. If you're a C corp, your partnership returns are due a month earlier on March 15. Returns for C corps are now due in April; previously they were due in March.
2. Employers are required to file W-2 forms and some 1099 forms with the government by Jan. 31. Employers were already required to give those forms to employees and independent contractors by Jan. 31, but previously had until the end of February to submit them to the government.
Starting on January 22, there are new postage rates in effect. Plan accordingly and find all the rate changes here.
Congress decreased the standard mileage rate from 54 cents in 2016 to 53.5 cents this year. You can easily track your mileage in an app such as MileIQ or TripLog.
Depending on your state, there may have been changes to laws relating to paid family leave, sick pay, or parental leave.
While the federal minimum wage hasn't changed yet, many state and local minimum wages have risen. In California, the minimum wage is $10.50 per hour and it's scheduled to increase to $11.00 per hour on January 1, 2018. For other states, check the Department of Labor website here.
Beginning January 19, businesses will need to use an updated I-9 form for new employees. Thankfully, the form has been simplified. You can find it here.
Higher social security wage base
Your business may need to budget for higher payroll taxes this year if you have owners or managers making $127,200 or more this year. The Social Security Administration announced that the maximum amount of wages in 2017 subject to the 6.2% Social Security tax will rise from $118,500, an increase of more than 7%.
Small businesses buying equipment get a larger tax break in 2017. The Section 179 deduction will be $510,000, up $10,000 from 2016, to counter the effects of inflation. You can now deduct up front rather than depreciating the costs of equipment like computers, vehicles, furniture, and equipment.
To make sure you're on top of these changes, make an appointment with your accountant or CPA today. They can help you plan for these changes and take advantage of the benefits available.
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