Paychex Identifies Five Important Tax Tips for Small Business Owners to Consider - Seite 2

Accelerated Depreciation. Don't forget that the Section 179 deduction is still set at a limit of $500,000 as a result of the PATH Act that was signed into law on December 18, 2015. As long as equipment and software are financed and in place by midnight on December 31, 2016, they are eligible to receive the Section 179 deduction. Also, bonus depreciation is extended through tax year 2019, so small businesses will be able to depreciate 50 percent of the cost of equipment acquired and put into service during 2016 and 2017.

401(k) Tax Credit. Small businesses that start a new 401(k) plan between now and December 31, 2016 can claim a federal tax credit for the first three years of the plan to offset plan startup costs. Eligible startup costs include those necessary to set up and administer the plan, as well as those to educate employees about the plan. A percentage of contributions made by the employer are also tax deductible.

Deferral of Income. Consider if deferring income into 2017 makes sense for your small business. Doing so may allow you to take advantage of reductions in tax rates the next administration is looking to enact.

To download a Slideshare of the tax considerations for small business owners, click here.

For other helpful tips to advance the long-term success of small businesses, visit www.paychex.com/worx/.

Note: The information contained within is not tax or legal advice. These issues are complex and applicability depends on individual circumstances. Businesses should consult tax or legal counsel before taking action on any of the items identified above.

About Paychex
Paychex, Inc. (NASDAQ: PAYX) is a leading provider of integrated human capital management solutions for payroll, HR, retirement, and insurance services. By combining its innovative software-as-a-service technology and mobility platform with dedicated, personal service, Paychex empowers small- and medium-sized business owners to focus on the growth and management of their business. Backed by 45 years of industry expertise, Paychex serves approximately 605,000 payroll clients across more than 100 locations and pays one out of every 12 American private sector employees. Learn more about Paychex by visiting www.paychex.com, and stay connected on Twitter and LinkedIn.

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Media Contacts

Lisa Fleming
Paychex, Inc.
585-387-6402
[e-mail]
@PaychexNews

Tess Alberts
Eric Mower + Associates
716-880-1488
[e-mail]