Understanding the New Tax Laws Every Business Owner Should Know
Tax laws change frequently, and staying current is essential for business owners. By understanding new regulations, you ensure compliance and also take advantage of opportunities to maximize savings. Therefore, here are the key changes and strategies you should know.
Key Changes in the New Tax Laws
Recent updates impact deductions, credits, and reporting requirements. For example, many businesses will see depreciation rules, allowable expenses, and available credits change. As a result, staying ahead of these changes is critical to avoid penalties and missed opportunities.
Review Deductions and Credits
Understanding which deductions have been expanded, reduced, or eliminated is essential. For instance, new rules may treat equipment purchases or employee benefits differently. In addition, take the time to verify eligibility to maximize available tax credits.
Adjust Payroll and Withholding
Tax law updates often affect payroll and employee withholding requirements. Updating your payroll system ensures compliance and helps avoid issues with under- or over-withholding.
Plan for Estimated Taxes
Because changes in income thresholds or tax rates may require adjustments, review your quarterly estimated tax payments. Doing this with your CPA can prevent penalties and also improve cash flow planning.
Work with a CPA or Advisor
Professional guidance is invaluable when tax laws shift. A CPA can help you interpret changes, ensure compliance, and identify opportunities to reduce liabilities.
Final Thoughts
Adapting to new tax laws can feel overwhelming. However, with proactive planning and expert guidance, your business can stay compliant while maximizing savings.
Schedule a consultation with JoQuin Associates today to review how the latest tax laws impact your business, or contact us here to get started.