Wiley Harrison – Page 5 – Business of Your Business

Author: Wiley Harrison (page 5 of 8)

The IRS Releases the 2019 Standard Mileage Rates

Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

58 cents per mile driven for business use, up 3.5 cents from the rate for 2018,
20 cents per mile driven for medical or moving purposes, up 2 cents from the rate for 2018, and
14 cents per mile driven in service of charitable organizations.

It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, except members of the Armed Forces on active duty moving under orders to a permanent change of station.

For more details see Notice-2019-02.

Social Security Tax Increase for 2019

December 7, 2018 / Wiley Harrison / Comments Off

As of January 1, 2019, the maximum wage base that is subject to the Social Security payroll tax will increase from $128,400 to $132,900.

There is no limit on earnings subjected to the Medicare payroll tax.

NYS Mandated Sexual Harassment Prevention Policy

October 24, 2018 / Wiley Harrison / Comments Off

Beginning in October 2018, all New York State employers, regardless of size, must adopt a sexual harassment prevention policy. Aside from implementing the policy, employers must conduct training or use a similar policy that meet or exceeds the law’s minimum standards.

All employees must complete the training by October 9, 2019. Employers are required to ensure that all employees receive training on an annual basis.

For more information, model policies and training sessions as well as a toolkit for employers, please visit NYS Combating Sexual Harassment in the Workplace.

AAMW 28th Annual Brotherhood Breakfast on November 2, 2018

October 16, 2018 / Wiley Harrison / Comments Off

On November 2^nd, the African American Men of Westchester and the Business Council of Westchester will host its 28^th Annual Brotherhood Breakfast. This will be an excellent opportunity to network with business leaders and government officials.

Our thought leadership discussion this year is STEM and the importance of having a STEM-Literate Workforce in all businesses.

I hope you will consider attending. You may register at 2018brotherhoodbreakfast.eventbrite.com

Thank you

Wiley Harrison

Breakfast Chairperson

Wiley Harrison Appointed to MWBE Task Force

August 21, 2018 / Wiley Harrison / Comments Off

Congratulations to BYB’s Wiley Harrison on his recent appointment to Westchester County Executive George Latimer’s MWBE Task Force.

The task force was created to address the needs and challenges of Minority and Women-Owned Businesses (MWBE) in Westchester County in order to help them grow and succeed.

“The bottom line is this – we need to attract businesses and keep businesses here in Westchester County to keep our economy thriving. When our businesses thrive our County thrives, and we want to partner with those businesses, large and small, to meet their employment needs and technology needs.” – County Executive Latimer

Join Us on May 23rd!

May 18, 2018 / Wiley Harrison / Comments Off

Please join the Yorktown Small Business Association on May 23^rd; Wiley Harrison will be a guest speaker at their Small Business and Employment Opportunity Fair discussing “Small Business vs Big Business.”

8:00 am to 12 pm
Mercy College — Yorktown Campus

2651 Strang Blvd., Yorktown Heights

Are You Eligible to Claim an Education Credit?

February 1, 2018 / Wiley Harrison / Comments Off

For tax year 2017, student must receive Tuition Statement, form 1098-T, from an eligible institution to claim the tuition and fees deduction, American opportunity credit, or the lifetime learning credit,

There are certain reasons why institutions will not send you form 1098-T. For example having tuition waived or paid in full with scholarships, being a non-resident student, or having a formal separate financial and billing arrangement with an employer or government agency.

Keep records to prove enrollment, related expenses and tuition payments. This can be used to send to the IRS directly to claim the credit.

For more information and a test of questions to determine eligibility Click Here!

New Tax Reform, Tax Cuts & Jobs Act

January 1, 2018 / Wiley Harrison / Comments Off

President Trump recently signed the tax reform bill into law which resulted into major changes to the code for both individuals and corporations. Here is a brief summary of the changes that will affect most of you.

Tax Brackets – Same number of brackets, different tax rates and different ranges. If your taxable income is the same in 2018 as was 2017, you will pay less federal taxes. A lot of the difference are in the changes leading to “taxable income”.

The marriage penalty is almost gone. – Under the old law the combined income for a married couple was taxed at a higher rate than the same total income for 2 individuals. For example: a single person with taxable income of $90K would be in the 25% bracket. A couple with $180k in taxable income is in the 28% bracket. Under the new law, both cases are in the 25% bracket.

New Standard Deductions

Filing Status	Old Law	New Law
Single	$6,500	12,000
MFJ	13,000	24,000
MFS	6,500	12,000
HOH	9,350	18,000

Capital Gains (stock sales and sales of other appreciated assets)

- Short term gains are taxed as ordinary income (no difference)
- Long term rates are as follows:

	Single	MFJ	HOH	MFS
0% up to:	$38,600	$77,200	$51,700	$38,600
15% up to:	425,000	479,000	452,400	239,500
20% over	425,000	479,000	452,400	239,500

Tax Breaks for Parents. The child tax credit is increased from $1,000 per child to $2,000 per child. Of that amount $1,400 is refundable. In addition, the phase out for eligibility is expanded.

Tax Status	Old Law	New Law
MFJ	$110,000	$400,000
Individuals	$75,000	$200,000

- If children are 17 years and older or you care for elderly relatives, you can claim a nonrefundable credit of $500 each.

Home mortgage interest can only be taken for mortgage balances up to $750,000. This was previously $1 million. This applies to loans taken after Dec. 15, 2017. Interest on home equity debt can no longer be deducted.

State and Local Tax Deduction (SALT) is now limited to $10,000.

Deductions that are disappearing:

- Casualty and theft losses
- Unreimbursed employee expenses
- Moving expenses

Pass-through income from sole proprietorship, LLCs, partnerships, and S corporations will be able to deduct 20% of the profit. There are phaseout income limits that apply to “professional services” business owners. They are $157,500 and $315,000 for individuals and married couples respectively.

Corporate tax rates have been reduced for most corporations, but not for all. A corporation with profit below $50,000 will pay more in taxes. The new rate is 21% for all profits. The old rates were:

From	To	Rate
$0	$50,000	15%
50,000	75,000	25%
75,000	100,000	34%
100,000	335,000	39%

Interesting: If in 2017 your corporate profit was $50,000; your federal tax was $7,500 (50K * 15%). That tax increases under the new law to $10,500 (50K * 21%). Let’s hope this is corrected soon.

Increased Minimum Wage in NYS

December 31, 2017 / Wiley Harrison / Comments Off

From 12/31/2017 to 12/30/2018, the basic minimum wage is $10.40 per hour in most of New York State.

There are different minimum wage rates for: the fast food industry; Long Island; Westchester County; and large and small employers in New York City.

General Minimum Wage Rate Schedule

NYC – Large Employers (of 11 or more) $13.00

NYC – Small Employers (10 or less) $12.00

Long Island & Westchester $11.00

Remainder of New York State $10.40

For more information on the increased minimum wage specific to your industry, please visit the NYS Department of Labor.

Employers must post a Minimum Wage Information poster in their place of work.

Charitable Contributions

December 15, 2017 / Wiley Harrison / Comments Off

This holiday season, if you’re in the spirit of giving, charitable contributions can be the gift that gives back!

Charitable contributions made to qualified organizations can help lower your tax bill. Record keeping of donations and contributions must be maintained no matter the amount. To properly back up your contributions please keep bank records, receipts, or payroll deductions reflecting the amount.

If you are receiving a benefit for your contribution, you can only deduct the amount that exceeds the fair market value (ex. gala tickets). Non-cash donations such as household items and clothing, must be in good used condition and valued at fair market price.

For more information, read these eight tips the IRS provides here!