Attention, businesses: The U.S. General Services Administration has posted the domestic per diem rate table for fiscal year 2019 on its website. The rates are in effect from Oct. 1, 2018 through Sept. 30, 2019. The information is used by employers who pay a per diem allowance to employees for business travel away from home, within the continental U.S. The maximum standard per diem rate for locations not listed in the per diem rate table will increase from $144 to $149 on Oct. 1 ($94 for lodging, $55 for meals and incidentals). The standard rates cover most U.S. counties. To search by state: https://bit.ly/2ZUUl1P
Does your business provide company cars to owners and key employees? This perk provides substantial valuable benefits for those provided with cars, as well as tax deductions for employers. There are complex rules for valuing the personal use of the cars. We can help you with the details. Be aware there are recordkeeping requirements. Employees must keep a diary or records with information about the employment business use of the auto (time, place, mileage, business purpose). Total mileage minus business mileage will yield personal mileage, the value of which must be treated as taxable fringe benefit compensation income. Contact us with questions.
A second draft of the 2020 Form W-4 is now available. The IRS expects no substantive changes when the form’s final version is published. The new form doesn’t change the computation of withholding contained in the earlier draft. The previous version of Form W-4 calculated a taxpayer’s income tax withholding using a withholding allowance based on the personal exemption amount. Tax law changes in 2017 suspended personal exemptions and substantially increased the standard deduction. The mismatch between the old Form W-4 and the TCJA has caused some taxpayers to over- or under-withhold. See the draft form: https://bit.ly/2M3S0ex