Tag Archive for employees

What Is Reasonable Compensation For Employees of An I.R.C. § 501(c)(3)? (Part 1)

What is reasonable compensation?

One of the most important decisions a board determines is what constitutes reasonable compensation. The rules for this determination are robust and so are the taxes imposed for violations of the Internal Revenue Code and the corresponding Treasury Regulations. In this 2-Part series, we examine the taxes imposed for unreasonable compensation and explain the steps for determining reasonable compensation. In this Part 1, we introduce the persons potentially subject to the taxes and the taxes themselves.

Whose compensation is possibly subject to I.R.C. § 4958 taxes?

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Written by | Posted in Reasonable Compensation

Will The IRS Turn Your Contractors Into Employees?

One of the big red flags with the IRS these days happens when you have independent contractors or subcontractors.

If you do not properly prepare Form 1099s for them, the IRS may deny the deduction for amounts you pay them. They may even decide they should be employees instead of independent contractors (ICs).  Note: Most businesses do not prepare 1099s properly. Read More

Written by | Posted in TaxConnections

Employer EITC Notice To Employees – New CA Requirement!

Annette Nellen

Several states require employers to notify employees that they may be eligible for the federal (and perhaps also state) Earned Income Tax Credit (EITC). This year, California law was changed to require employers to also notify employees about the California EITC recently added to the law.

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Written by | Posted in Tax Forms • United States