When are LLC members subject to self-employment tax?

Limited liability company (LLC) members commonly claim that their distributive shares of LLC income — after deducting compensation for services in the form of guaranteed payments — aren’t subject to self-employment (SE) tax. But the IRS has been cracking down on LLC members it claims have underreported SE income, with some success in court. SE […]

Let’s Get To Work

A simple hire could prove to be complicated Do you hire helpers to care for your children or do household cleaning? What about hiring someone to maintain your lawn and garden? Do you pay them cash or “under the table?” Do you know that the IRS has rules on how much you can pay these […]

New year is a good time review deposit rules

Now that the calendar has turned to 2015, this is a good time to remind employers of the 941 tax deposit rules. These employment taxes include (1) both the employee and employer share of FICA tax; (2) the additional 0.9 percent Medicare tax withheld from employees’ wages; and (3) federal income tax withheld from employees’ […]