Save money with our 2023 tax tips

It's an annual chore: filing income tax returns for your business. Since there’s no way to avoid them, the best way to handle this responsibility is to be prepared. The resources enclosed in this month’s newsletter should provide an excellent starting point, hopefully empowering you to tackle taxes head-on this year.?

2023 Business Tax Saving Tips

It's possible to rein in your tax expenses with a number of strategies, including maximizing deductions and credits, sheltering revenue, and contributing to employee benefit plans. Plan ahead with these tax-saving tips that can help you and your employees.

Learn more: 8 tax-saving tips for your business

Filing Your Business Tax Return and Tax Changes in the 2023 Filing Season

Whether you're an experienced business owner or just getting started, tax credits and deductions are continually changing. Check out these new developments.

Some tax rules had been temporarily put in place to provide relief during the pandemic. These rules expired, letting previous rules come back into place for 2022 returns. What's more, some rules that had been set to expire at the end of 2021 have been extended or modified for 2022. The changes to note on the 2022 return include:

• Charitable contribution limits.?The 25% taxable income limit for donations by C corporations that applied in 2021 is back to the standard 10% limit in 2022. For owners of pass-through entities, the limit on their share of cash contributions made by their businesses that was up to 100% of adjusted gross income in 2021 reverts to the 60% limit. What's more, there's no option for deducting cash contributions in 2022 by individuals who don't itemize deductions.
• Alternative energy improvements.?The percentage of the cost of solar panels and other alternative energy improvements, which was supposed to decline to 26% in 2022, has been fixed at 30%.
• Amortization of R&D expenses.?Before 2022, these expenses could be deducted in full in the year they were paid. Beginning in 2022, they must be amortized (deducted ratably) over no less than five years (15 years for foreign R&D).
• Tax credit for buying clean vehicles.?The tax credit limit for purchasing an electric vehicle in 2022 is the same as it's been: $7,500. However, for purchases on or after August 16, 2022, there's a?final assembly requirement?that must be made in order to claim the credit.
• Paycheck Protection Program loan forgiveness.?The amount?of the loan forgiven is viewed as tax-exempt income; it doesn't increase reportable income. But it's taken into account in figuring gross receipts for purposes of determining eligibility by some businesses to use the cash method of accounting. It's factored into a partner's basis.

Learn more: 2023 tax changes to know

Don’t miss these Colorado SecureSavings deadlines

Signed into law in July 2020, the state of Colorado requires all eligible employers — who don’t already offer a retirement plan — to either offer an employee retirement plan or participate in the Colorado SecureSavings program by the following dates:

o??Employers with 50+ employees: March 15, 2023

o??Employers with 15-49 employees: May 15, 2023

o??Employers with 5-14 employees: June 30, 2023

Please reach out to your account manager or visit our state retirement plan resource center for guidance on meeting these deadlines.

Learn more: State Retirement Plans and Programs

How could 3 months of free HR help you??

Keeping up with ever-changing tax and regulatory obligations can be a challenge for many businesses. Paychex can help. Get strategic advice from our HR professionals and streamline processes with our award-winning technology. Request a consultation to see how we can help you to stay compliant and avoid costly penalties.

3-Month Free Paychex HR

Designing success with Paychex

Paychex stepped in to manage payroll for The Verve Partnership so its new owner Kelly Ennis could focus on running her business. “I don’t have to worry about it, which is beautiful.”

Learn more: Custom Payroll Solutions for The Verve Partnership

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