$9/hour NY minimum wage starts New Year’s Day. New IRS rules for businesses. Free help keeping tax records
Open New Year’s? Pay higher NY minimum wage
New York’s minimum wage goes up to $9 an hour from its present $8.75 on Dec. 31, 2015. Plan now for the transition, especially if your business will be open on New Year’s Day.
IRS raises expense v. depreciation limit
The Internal Revenue Service is raising the “safe harbor” limit businesses can deduct on a capital investment within a single year raised to $2500 from $500. The $2,500 threshold takes effect in tax year 2016; however, the IRS will provide audit protection to eligible businesses by not challenging use of the $2,500 threshold in tax years prior to 2016.
IRS business mileage rates decrease for 2016
The IRS mileage rates for the use of a vehicle starting Jan.1, 2016 , are:
- 54 cents per mile for business use
- 19 cents per mile driven for medical reasons or moving purposes
- 14 cents per mile driven for charitable purposes.
Business mileage: There’s an app for that
Everlance has created a way for users to record business mileage without having to use a paper mileage log or having to remember to hit “start” on a mileage tracker. It works through a smartphone’s GPS, geofencing and other inputs. The free Everlance app is designed for small business owners and independent contractors.
IRS alerts to prevent late payroll taxes
The Internal Revenue Service is going to monitor the payment habits of businesses and send them automated alerts when they seem to be having problems. The idea is to keep people from being hit with fees and penalties that could have been avoided by proper management of payroll taxes.