Equity compensation is an attractive way for employers to recruit and maintain employees in the long term. Given the various types of equity compensation, it is important for both employers and employees to understand how these different types of equity awards are taxed.
Business Accounting
On May 10, 2024, Governor Bill Lee enacted Public Chapter 950 which resulted in the removal of the property measure component from the franchise tax computation for tax years ending on or after January 1, 2024. Under this legislative amendment, taxpayers who previously remitted taxes based on the ...
Unlike traditional C-Corporations, S-Corporations are pass-through entities, meaning the corporation's income and losses pass through to the shareholders' personal tax returns. This structure helps to avoid double taxation of C-Corporations, as shareholders are taxed at their individual income tax ...
When comparing a Limited Liability Company (LLC), a Limited Partnership (LP), and an S Corporation (S-Corp), it is essential to consider their differences in terms of structure, liability, management, and taxation for different business needs. Each entity type offers distinct advantages and ...
The IRS has increased its compliance efforts with the objective of accurate reporting and payment of Self-Employment Contributions Act (SECA) taxes. This pertains specifically to individual partners who hold the status of a “limited” partner but may not necessarily meet the criteria of a limited ...
In July 2023, the Texas legislature passed Senate Bill 3, which increased the no tax due threshold and eliminated reporting requirements for certain entities. In response, the Texas Comptroller's office has issued guidance and changed the way some entities have to report for franchise tax purposes ...
The Internal Revenue Service reminded individuals and businesses in most of California and parts of Alabama and Georgia that their 2022 federal income tax returns and tax payments are due on Monday, Oct. 16, 2023. The normal due date of April 18 was postponed for many residents of these states in ...
The line between having a hobby and running a business can often be confusing, but knowing the difference is critical because hobbies and businesses are treated differently when it’s time to file your taxes. The biggest difference between the two is that hobbies are for pleasure or recreation while ...
The classification of workers in the United States as either 1099 (independent contractors) or W-2 (employees) has significant implications for both parties involved. Understanding these differences is vital for contractors and employers to ensure tax and labor law compliance. This article will ...
ASC 842, the new lease accounting standard from the Financial Accounting Standards Board (FASB), has been in effect since December 15, 2018, for public companies and will go into effect for private companies on December 15, 2021. The GAAP lease accounting standard, ASC 842, mandates that leases ...