For Security Company owners within the United States, the following information should be useful to help you with tax deduction choices for the up-coming year. Here’s how it works:
Your company is responsible for payroll taxes FICA, FUTA SIU etc.. These payroll taxes take your earned money directly out of your pocket and out of the pocket of your employees. If your employee is using his/her personal vehicle for patrol or other legitimate business, you are able to reimburse that employee based upon the IRS’s Mileage Reimbursement at .501/2 cents per mile. The money is not income and it is tax free. How does this benefit anyone? Let’s just say that you’re paying your employee $10 per hour. You can add approximately .50 cents for every mile driven on patrol, rather than increasing their hourly wage to $13 per hour. We only recommend that you use this tax credit legally and that you document your employee’s mileage on their time sheets. Keep all records for tax filing time. Consult with your account first.
The Following was taken directly from the IRS Website:
The Internal Revenue Service today issued the 2008 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:
50.5 cents per mile for business miles driven;
19 cents per mile driven for medical or moving purposes; and
14 cents per mile driven in service of charitable organizations.
The new rate for business miles compares to a rate of 48.5 cents per mile for 2007. The new rate for medical and moving purposes compares to 20 cents in 2007. The rate for miles driven in service of charitable organizations has remained the same.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile; the standard rate for medical and moving purposes is based on the variable costs as determined by the same study. Runzheimer International, an independent contractor, conducted the study for the IRS.
The mileage rate for charitable miles is set by law.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire or for more than four vehicles used simultaneously.
Learn more about this and other topics related to security company taxes and payroll, log on to www.startasecuritycompany.com
Michael Evans
No comments:
Post a Comment