Hiring great people to help build your company is both one of the most important, and most difficult things a founder or CEO can do. When you find that hire though, it’s your job to make sure they are able to take the job. In some cases, this involves guaranteeing they can get the work visa they need to join your company.Read More
Starting this week, Justworks is launching our Employee Spotlight to help you learn more about who we are and what we’re all about.
We’re kicking off this series with our recent hire and Head of Marketing: Coral Edwards. Coral grew up in North Carolina and started her career in performance marketing before moving to New York City with her husband and their cat, Cecily. Prior, she studied at Lund University in Sweden where she received her Master’s
Degree in International Marketing and Brand Management. Welcome, Coral!Read More
Happy Monday. Amiright? In order to make this week the most productive one yet, here's a quick recap of what you might have missed over the last few weeks. Enjoy!
Learn what to do with your employee files, and when to do it, in this post.Read More
In an age of email, Google Drive, and Dropbox, our files tend to be scattered everywhere. Rarely they're where we need them when we need them, but most of the time that’s okay. When you’re starting a company though, there are a few employee documents you are legally required to keep and a few we would strongly encourage you to keep.Read More
Depending on where you're located, this winter has been a tough one. If you're based in New York, like we are, the snow actually hasn't been so bad and with the exception of Winter Storm Juno, offices have mostly remained open. If you're based out of Boston though, then that's another story entirely! The more than 7 feet of snow have caused offices to close for multiple days this year.Read More
Just when you thought 2015 couldn’t get any better: a document center! And a calendar! And a dash of search! Ok but really, we’ve been working on new features that we think will go a long way towards making your life a little easier.
Put those employee documents where they belong - in a place that’s secure and available to the right people. Now you can store offer letters, stock option documents, contracts, handbooks, performance reviews, policies and more.Read More
This is a guest post from our friends over at Oscar.
From launching an idea to running a business, entrepreneurship can be as all-consuming as it is rewarding. Entrepreneurs have plenty on their plates without trying to navigate the often intricate and confusing world of health insurance and for many, this is the first time picking their own coverage.Read More
Every deductible business expense reduces a business's taxable income, and when an employee incurs an expense while providing services for the business, those expenses are deductible business expenses if the employer reimburses his employee for the expenses. However, some businesses don't benefit from those deductions because they fail to have what the IRS refers to as an Accountable Expense Reimbursement Plan.
Without an accountable plan, expense reimbursements to an employee become taxable income to the employee. This costs both the employer and the employee money. The employee has to pay income taxes on the reimbursements. The employer may still have a tax deduction in the form of wages paid, but the employer incurs the additional cost of paying Social Security, Medicare, and FUTA taxes on those wages.Read More
The Internal Revenue Code (IRC) contains many instances of safe harbor business deductions. A safe harbor is basically defined as an alternative to the calculation, allocation, and substantiation of actual expenses for purposes of satisfying the requirements of the Internal Revenue Code. Many of the safe harbor provisions are specifically designated as safe harbor deductions, but the principle is applied in many other sections of the IRC as well.
The safe harbor principle can be applied to certain travel expenses. Employees must still substantiate the time, place, and business purpose of the travel, but the amount of the expense can be treated as substantiated if it based on one of the following methods:
- The standard mileage rate
- A fixed and variable rate (FAVR) allowance
- A per diem amount
In a previous article, Are Expense Reimbursements Taxable Income?, it was noted that expense reimbursements to an employee do not have to be included in an employee's wages if the business has an accountable plan. An accountable plan must meet three conditions, and the first condition – having a business connection – was discussed in the first article. This article will focus on the second condition – substantiation.
IRS Publication 15, (Circular E), Employer's Tax Guide, states that the employee must substantiate his business expenses by providing the employer with evidence of the amount, time, place, and business purpose of the expense within a reasonable period of time after they are paid or incurred.Read More