In the current world of work, where remote working is prevalent, especially given the COVID-19 pandemic, managing taxes gets tricky, especially while optimizing tax benefits for employees who work from home. Certified Public Accountants (CPAs) are responsible for providing solutions to the existing complexities.
Being acquainted with tax rules and regulations, a CPA in Savannah GA can help your business utilize all the tax exemptions applicable to remote employees. This article will explain how a CPA can assist with these deductions to save your business money and avoid running afoul of tax laws.
Understanding Tax Deductions for Remote Employees
The dynamics of working activities influenced by COVID-19 have caused the emergence of new tax factors for organizations. Employers with teleworkers may have access to different tax credits regarding home office expenses, transportation, communication, and many other costs. However, as a caveat, specific rules and regulations are associated with these deductions, whereby any improper claim might attract penalties.
This is where a CPA can come into its own. CPAs know the structure, current changes, and alterations to the tax laws in the current society concerning things like remote working conditions. They are in a position to determine the expense accounts that you can claim for your business. Some of the primary deductions for remote employees include:
- Home office deductions
- Travel and commuting expenses
- Utilities and internet costs
- Office supplies and equipment
Home Office Deductions
Perhaps one of the most familiar deductions that remote employees claim is the home office deduction. This deduction enables employers who work from home to claim costs related to the house. These include rent, interest on the mortgage, utilities, and insurance. However, certain conditions must be met before this deduction is applicable.
Travel and Commuting Expenses
Although the work-from-home staff does not travel daily to a main office, they still may have travel costs for meetings, conferences, or site visits. If this expense is relative to the business, it may be tax-deductible.
Utilities and Internet Costs
Other substantial expenses that justify the reduction of remote workers are utility bills and internet charges. Since these services are required for performing business transactions over the Internet, some of the costs can be included as a loss.
CPAs can determine the proportion of such expenses chargeable to business usage. This is especially so where the employees concurrently access internet and utility services belonging to other household members or utilize the services for other purposes. A CPA can assist in determining personal and business usage so that your employees can claim the correct amount, thus avoiding audits or penalties.
Office Supplies and Equipment
Many remote employees require products for their office work, including office supplies and equipment. A CPA can help your business and employees properly record these purchases and take the correct deductions. They will also recommend whether it is more advisable to write these expenses off in the year they were made.
Conclusion
When it comes to employees working remotely, organizing the taxation of deductions might be rather complex in the age of the COVID-19 pandemic. However, a CPA offers specialized knowledge to help your business sharpen these factors for tax compliance and save money in the long run.
Everything about remote work taxation, starting from home office deductions, travel expenses, and state taxes, is best handled by CPAs so that your business can concentrate on what it does best. With help from a CPA, you will be sure that your business benefits from tax incentives for having remote employees and does not fall into some unforeseen traps.
