What Businesses Need To Know To Prepare For Tax Season

Let’s be honest, Tax Season is an intimidating time of year for most people — especially business-owners. Regulations are constantly changing and there’s so much to stay on top of while you’re busy running a company. We understand and we’re here to help. So here are a few things to keep in mind as Tax Season approaches:

  1. Important Dates

Mark down these Important Business Filing Deadlines and plan ahead so that you don’t miss any.

February 2, 2015:

  • Distribute W-2’s to employees
  • Distribute 1099’s to recipients
  • 4th Quarter 2014 Payroll Tax Returns Due (941, 940, L-1)

March 2, 2015:

  • File Form 1096/1099
  • File Form W-3/W-2

March 16, 2015:

  • Corporations/S-Corporations – File a 2014 calendar year income tax return (1120/1120S)

April 15, 2015:

  • Partnerships/LLC’s – File a 2014 calendar year income tax return (1065)
  • Corporations – Deposit 1st installment of estimated income tax for 2015

April 30, 2015:

  • First Quarter 2015 Payroll Tax Returns due

June 15, 2015:

  • Corporations – Deposit 2nd installment of estimated income tax for 2015

July 31, 2015:

  • 2nd Quarter 2015 Payroll Tax Returns due

September 15, 2015:

  • Corporations – Deposit 3rd installment of estimated income tax for 2015
  • Corporations/Partnerships/S-Corporations – File a 2014 income tax return if an extension was filed

November 2, 2015:

  • 3rd Quarter 2015 Payroll Tax Returns due

December 15, 2015:

  • Corporations – Deposit 4th installment of estimated income tax for 2015
  1. The Inventory Tax Credit

There is a credit allowed against Louisiana income or corporation franchise tax for ad valorem taxes paid on inventory held by manufacturers, distributors, and retailers. The credit is also allowed for unincorporated persons and is applied to state personal income taxes. In order to take advantage of the credit, a copy of the assessment and cancelled check must be submitted with the entity’s tax return.

  1. Standard Mileage Rate Change

Beginning on January 1, 2015, the standard mileage rates for use of a car, van, pickup or panel truck are:

  • 57.5 cents per mile for business miles driven
  • 23 cents per mile for medical or moving purposes
  • 14 cents per mile in service of charitable organizations

The rate for business miles is based on an annual study of the costs of operating an automobile, including depreciation, insurance, repairs, maintenance, gas and oil. So update your policy and tell your employees.

  1. New Repairs & Maintenance Regulations

The IRS has issued long-awaited final regulations on the treatment of costs to acquire, produce or improve tangible property. Taxpayers will need to apply these regulations going forward to determine whether they can deduct costs as repairs and maintenance or must capitalize the costs and depreciate or amortize them over a period of years. Complying with the final regulations will require significant time and effort, despite several taxpayer-friendly changes. Every business, especially those with significant fixed assets, must develop an understanding of the regulations and their requirements.

  1. Affordable Care Act

The Affordable Care Act contains benefits and responsibilities for employers. The size and structure of your workforce—small, large, or part of a group—helps determine what applies to you. Some of the most important highlights for 2015 are:

For Small Employers (50 employees or less)

  • You must withhold and report an additional 0.9% on employee wages that exceed $200,000
  • You will be required to report the value of the health insurance coverage you provided to each employee on his or her W-2, beginning in 2015
  • If you provide self-insured health coverage to employees, you will have to file annual information on the employee coverage

For Large Employers (More than 50 employees) – Same as Small Employers, plus:

  • You must file an annual return reporting whether and what health insurance you offered your employees
  • You may have to make a payment if you do not offer adequate, affordable coverage to your full time employees, and one or more get a Premium Tax Credit
  • If you self-insure, you may be required to pay a fee to help fund the Patient-Centered Outcomes Research Trust Fund

We know this is a lot to digest, so if you have any questions or need guidance, feel free to call our Lafayette Tax Office at 337.988.4930 to talk to one of our tax professionals about the upcoming tax season. We’d be more than happy to help you get your head around all that’s coming up this year for your business.