Employee Related Deductable Expenses that you can claim on your taxes
Tax season is coming up, which means that as a small business owner, you’ll want to find as many things that you can write off as possible. Even items that only save you a few dollars here and there are important. These deductions add up – and can help you save a decent chunk of money, which is especially important for smaller businesses that are still trying to get off the ground.
If you have a number of employees working for you, then they may incur expenses that you will have to reimburse or pay for. These are employee-related expenses that you may be able to claim on your taxes. The following are a few of the employee-related expenses that you can claim on your taxes.
1. Meals and entertainment expenses
A lot of business deals are done over dinner or while entertaining a potential client or business partner. Your employees may take out potential clients in order to attempt to woo them into doing business with your company. Obviously, they will pick up the check. As long as business was engaged in during or directly before or after the meal or form of entertainment, then these costs are tax deductible.
2. Travel expenses
If any employees have to travel away from your place of business in order to meet with a client, potential client or business partner, then you can write off certain travel expenses, including the cost of a car rental, a plane ticket or a hotel room along with other similar expenses associated with traveling for business.
3. Transportation expenses
Employees that travel for your company will have vehicle expenses that include not just gas and oil, but also insurance and maintenance. If your business has some kind of delivery service, then your employees may be using their personal vehicles or company vehicles in order to perform whatever tasks they must do for your company. You can write off these expenses – however, the cost of commuting to and from work as well as the cost of parking at your company (if there are parking fees) cannot be written off.
4. Employee benefits
Certain employee benefits allow you to claim them on your taxes. In some cases, even if the benefit isn’t taxable to your employee, you may still be able to deduct the cost of providing those benefits as long as you meet the requirements. This can be a little tricky to figure out, which is why it’s important that you seek assistance of a professional accountant who can provide small business tax planning advice.
These are just some of the employee-related expenses that you may be able to write off on your taxes as a small business owner. However, you may have to meet certain requirements in order to be able to write off these expenses. To ensure that you can write some of these things off, you’ll want to speak with a professional tax accountant. Here at Valezar & Associates, we will help you determine what you can deduct and what you can’t from your employee-related taxes.
To find out more about our tax planning services, be sure to contact us at Valezar & Associates today.