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If your business pays for qualifying family and medical leave, you may be able to claim a federal tax credit under Internal Revenue Code Section 45S. The credit can be calculated using qualifying wages paid during leave. Starting with tax years beginning in 2026, eligible employers with qualifying insurance coverage can also use a premium method, even if no employee takes leave that year. Washington’s required Paid Family & Medical Leave (PFML) is not itself creditable. The p

An S-corporation owner’s salary should reflect the work they do for the business. But it can be easy to set a number once, move on to the next task, and carry that same figure into future years. I recommend a simple annual check instead. It gives you a chance to confirm that your pay still fits your role and to keep a clear record of how you reached your decision. This is about maintaining good financial habits, not creating a reason to worry. Why low salaries can draw atten

Closing a business comes with many decisions. Payroll may be one of the last things on your mind. But stopping operations does not automatically close payroll tax accounts or end filing requirements. I help clients handle this as a clear, finite process: finish payroll, file the final reports, settle balances, close the accounts, and keep the records. The steps below focus on federal and Washington payroll obligations. Your exact forms may depend on your business and filing s

AI can sort through transactions quickly. It can suggest categories, pull details from documents, and help with parts of a month-end close. That can save time. But speed is not the same as understanding. And a suggestion is not the same as a reviewed, reliable set of books. I see AI as a useful assistant for routine work. I also believe judgment, context, and control still belong in the process. Here’s what that means for your business. Where AI can save time Bookkeeping in

If you read my September update on the FIRE-to-IRIS transition, this is the practical follow-up: the final dates are close, and it is time to confirm how you will file your 2026 information returns. The IRS will stop accepting filings through FIRE permanently on November 19, 2026, at 3 p.m. Eastern Time. That date is not being extended. The useful step now is to check your filing method, confirm your access, and get vendor records in order before year-end. Put these three da

January payroll is easier when you know which settings need attention before the year begins. For Washington employers, several figures change on January 1, 2027. They affect hourly wages, overtime-exempt salary thresholds, paid leave premiums, and federal payroll tax planning. I’ve gathered the key updates in one place. All the major numbers are final now, including the 2027 Paid Family and Medical Leave premium that was announced on October 16. 1. Washington’s minimum wage

If you buy health coverage through the Marketplace and receive advance premium tax credits, it is worth checking your income estimate before the end of the year. Beginning with tax year 2026, the old repayment cap for excess advance premium tax credits no longer applies. If the advance credit paid for your coverage is more than the premium tax credit you qualify for based on your final income, you may have to repay the full excess when you file your federal tax return. For se

Nothing about your business may have changed. But your payroll calculations and federal tax deposit schedule still might. The Social Security Administration announced the 2027 cost-of-living adjustment (COLA) and Social Security wage base on October 14. Separately, the IRS lookback period determines whether many employers deposit payroll taxes monthly or semiweekly in 2027. I’ll walk through what each change means, what to check, and how to make the transition manageable. For

October 31 looks like the date to remember for third-quarter payroll filings. But in 2026, October 31 falls on a Saturday. That moves the regular due date for both the Washington Employment Security Department’s (ESD) Q3 tax and wage report and the federal Q3 Form 941 to Monday, November 2, 2026. Two different reports. Two different agencies. One Monday deadline. I know payroll dates can be easy to lose track of when you’re busy running your business. Here’s what each filing

If you’re still wrapping up a 2025 tax return, October 15 is an important date, but it may not be the only deadline that applies to you. The date is the extended filing deadline for many individual returns and calendar-year C corporation returns. But an extension gives you more time to file, not more time to pay. And taxpayers covered by certain federal disaster declarations may have a different deadline altogether. Here’s how to check which date applies, what to do if you st

When cash is tight, payroll tax money can look like cash available to keep the business moving. But some of it is not the company’s money to use. Federal income tax and the employee share of Social Security and Medicare taxes withheld from wages are called trust fund taxes. Employers hold these amounts for the Treasury until they are deposited. Using that cash to pay another bill can create personal consequences for the people responsible for the business’s financial decision

Many small-business owners only talk to their bookkeeper at tax time. The pattern is familiar. You collect receipts, download bank statements, and hand over a shoebox or a digital folder in March. Your books are cleaned up. Your tax return is prepared. Then the conversation ends. You do not discuss the numbers again until next year. That approach can work for a very small business with almost no activity. But for many active businesses, annual-only bookkeeping creates a probl

October is a quiet month for bookkeeping. That is exactly why I like it. There is still time to review your records, find small errors, and correct them during a normal monthly close or payroll run. You can ask questions while the transactions are fresh. You can fix missing information before year-end reports are prepared. January is different. A problem found in January may require a corrected W-2, an adjusted return, or a phone call explaining why two reports do not match.

On September 29, 2026, the IRS issued Notice 2026-58. It identified 71 older pieces of tax guidance as obsolete. The list includes revenue rulings, revenue procedures, notices, and announcements. The subjects range from clean energy bonds and church bonds to gambling winnings, business expenses, retirement plans, reporting rules, and other specialized topics. That headline may sound dramatic. The practical message is much calmer. The IRS did not create a new tax rule by issui

If a new WA Cares balance is showing on your Washington Employment Security Department (ESD) billing statement, take a breath. This is not automatically a penalty. It is usually a reconciliation item connected to the WA Cares premiums your business withholds from employee paychecks and reports to ESD. The line may now appear alongside unemployment tax information on the same mailed statement. ESD is showing outstanding WA Cares balances for employers who owe $50 or more. I kn

Business travel does not need to create a pile of receipts and questions. Starting October 1, 2026, the IRS has updated its per diem rates for business travel in the continental United States. The new rates apply through September 30, 2027, under IRS Notice 2026-60. Per diem gives you an optional way to substantiate certain travel expenses. Instead of tracking every individual meal and incidental expense, you may be able to use the IRS-approved daily rate. It is one less thin

If you run a small business, you may have wondered whether you need a bookkeeper, an advisor, or a fractional CFO. The answer depends on what your business needs today. You may not need a full finance department. You may not need a full-time CFO. You may simply need reliable books, current information, and someone who can answer questions when a decision has a number attached to it. I find it helpful to think of financial support as a practical ladder: Software or DIY bookkee

A CP53E letter can feel confusing, especially if you were not expecting an IRS notice. The good news is that this is usually fixable. You have a clear next step. You also have a limited amount of time. The IRS mailed roughly 1.9 million CP53E notices during the 2026 filing season to taxpayers whose refunds could not be sent by direct deposit. The notice gives you 30 days from the date on the letter to update your banking information through your IRS Online Account. There is o

Tax savings can make a real difference for a small business. That is why fabricated tax credits are so dangerous. They are designed to sound helpful, official, and exclusive. The IRS recently warned taxpayers, businesses, tribal communities, and tax professionals about fake offers marketed as “Tribal Tax Credits,” “Native American Tax Credits,” or “Sovereign Tribal Tax Credits.” These credits do not exist under federal law. Promoters are selling them as a way to erase tax lia

Payroll help can make running a business much easier. A reliable provider can calculate wages, prepare tax forms, schedule deposits, and keep payroll moving on time. That support is valuable. I recommend it to many small business owners. But there is one important detail to understand: Outsourcing payroll does not usually outsource your legal responsibility for payroll taxes. If a payroll service provider makes a mistake, misses a deposit, or fails to file a return, the IRS m