Spencer Accounting Group, LLC - Tax Planning and Preparation Services - West Allis, Milwaukee, Brookfield, Waukesha, United States and Saudi Arabia
  • Home
  • Pricing
    • Rush & Cancellation Policy
  • Let's Chat
  • Home
  • Pricing
    • Rush & Cancellation Policy
  • Let's Chat

FREE Tax Tips and Updates

Browse our blog for helpful tax planning and preparation information.

Employee Recreations and Parties

5/20/2021

0 Comments

 
Picture
You should have a party with your staff and deduct 100% of the cost when you understand the rules. 

According to the IRS, two forms of entertainment are eligible for the entire employee entertainment tax deduction: 

The IRS emphasizes that the two forms they specify are only examples and that other forms of entertainment might also be eligible for the full entertainment deduction. “Expenses for leisure, social, or related events (including services therefor) solely for the benefit of employees,” according to the tax code, are eligible for a 100 percent deduction.
Who Are Considered The Employees?

Entertainment expenses must be solely for the gain of employees who are not in a "tainted group," according to the law. The tainted group consists of 


  • highly compensated employees (those paid more than $130,000 in 2021); 
  • anybody, including you, who owns at least a 10% interest in your business (this is referred to as a "10% owner")
  • or any family members of 10% owners, such as brothers and sisters (including half-brothers and half-sisters); spouses; ancestors (parents, grandparents, etc.); and lineal descendants (children, grandchildren, etc., including adoptees).

You are a member of the tainted group as a company owner. That isn't a significant issue. All you have to do is make sure that drinking with the workers is solely for their good.

"More Than 50%" is what "Primary" means.


More than 50%" is what the words "primary" and "primarily" indicate.  This means that the untainted group of workers must account for more than 50% of the use of the entertainment venue.

Tip: Primary has various measurement techniques. 

There are several possibilities for employee entertainment. Please contact us if you'd like to explore this further.

0 Comments



Leave a Reply.

    We're Here to Help

    Get advice from our experienced network of financial managers. 
    ​

    If you Value our Blog, We have an ask.

    We spend hours researching data to help you understand your finances and taxes, including historical context, issues, and solutions. Our goal is to empower people to improve  their relationship with money. ​Please consider a $3 donation today.

    Tax Plan Video

    Important Disclosures


    Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.

    ​
    To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
    ​
    These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

    GET STARTED

    Author

    Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion.  Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.

    Keana founded this website and decided and created this blog page to offer a space for those seeking knowledge to understand, however not to be confused with advice or planning strategies.

    RSS Feed

    Accounting Services
    Tax Preparation
    Picture
    Picture
Home
Net30 Account Info
Privacy Policy
Contact Us

Picture
Picture
Picture
Copyright 2021 ALL RIGHTS RESERVED.
Photo used under Creative Commons from verchmarco