THE END OF 2024 IS ALMOST HERE. ARE YOU READY?
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Filing your taxes for 2024 can be made easier by getting ready now. Another year winds down and another tax return needs to be filed. So, as we move toward the end of the year, we would like to offer a few reminders to individuals that have business operations. First, make sure you have filed the newly required Beneficial Ownership Interest (BOI) form by December 31, 2024. With the growth of sales over the internet, you may need to track out of state sales totals for reporting.
Secondly, as year-end payroll reporting nears, don’t forget the following annual payroll reporting requirements. These include:
- Employee personal use of company vehicles,
- Employer paid health insurance for employees for W-2 purposes,
- Employer paid health savings account deposits for W-2 purposes
- Employer paid childcare expenses for W-2 purposes,
- Employer paid education plans and term life insurance for W-2 purposes,
- Employer contributions to employee pension plans.
As we go into 2025, we are all uncertain of what new tax rules will apply in 2025. So you may want to consider deferring major equipment purchases and building repairs or improvements until next year unless you are able to specifically discuss how this may affect your business. In addition, you may want to consider postponing new tax elections or setting up new entities until, with your CPA, have a better understanding of what new tax laws will be introduced in 2025.
Next are a few year-end tax credits that might be valuable:
1. There is a new credit for smaller businesses who set up their first pension plan in 2024. This credit can, in many instances, completely offset the costs of setting up the plan as well as offset some or all of the employer’s plan contributions.
2. Some businesses may greatly benefit from the fuel tax credit. The Fuel Tax Credit is allowed for Federal highway tax paid for fuel used off-highway in a business such as pumps, generators, compressors, tractors, trucks used in lots, landscapers, farmers, grass cutters, tree trimmers, helicopters, crop-dusting and many more business applications. At over 18 cents per gallon this can be a huge credit!
Start a Special File that updates your information to have ready: This includes:
1. Has there been a change in ownership this year? If so, provide new owner identification information, dates and percentages.
2. Have you opened or closed any locations this year-if so, please provide that information with the physical address.
3. Provide a list of information about your owners email addresses and cell phone numbers.
Finally, do you have a website? If so, what is your website address: ___________________.
Additionally, make sure you have considered sales and income tax registration, collection and filing requirements in other states.
Last thing for filing normal year end information needed for filing 2024:
1. __ Copies of any new bank loans obtained during the year
2. __ Copies of any new leases signed during the year
3. __ List by date, amount and individual of any new investments made into the company this year by the owners
4. __ Copies of any federal or state tax correspondence received during the year
5. __ Copies of any equipment purchase invoices over $1,000
6. __ Loan payoffs, by loan number, of all business loans at December 31
7. __ Copies of your year-end bank reconciliation(s) and bank statements
8. __ 12/31/24 Year End Balances of:
- Accounts Receivable $___________
- Cost of Inventory on Hand $________
- Accounts Payable $ ______________
- Unpaid 941 Deposit for December $__________
- Unpaid State(s) Withholding deposits for December $_______________
- Unpaid Sales tax for December $_____________
- Unpaid wages earned through 12/31/23 $__________
9. __ The enclosed engagement letter needs to be signed and returned
10. __ Year-end summary of business activity-back up, online access or hard copy (Accounting software back-up, trial balance, etc.)
11. __ Sales breakdown by state and city if applicable (Call us to determine)
12. __ Copies of all 4 quarters Form 941, and 2023 W-2’s issued to employees
13. __ All Forms 1099-K, 1099-NEC and 1099-Misc received
Filling in the amounts above represents your company’s amounts as requested and should be compiled prior to your first meeting with your CPA.
Have questions? Make your 2024 tax filings easier this year. Simply fill out the information above and have it ready. Have any questions? Give us a call at 812-883-6938 to set an appointment and bring in this information and start 2025 off ahead.
What Employment Practices Liability Insurance Covers Employment Practices Liability Insurance is built around the employment relationship. It may help cover legal defense costs, settlements, or judgments tied to covered workplace claims. A policy may respond to claims involving: Wrongful termination Discrimination Sexual harassment Retaliation Failure to hire Failure to promote Wrongful discipline Negligent evaluation Employment-related defamation Invasion of privacy The International Risk Management Institute identifies wrongful termination, discrimination, sexual harassment, and retaliation as common EPLI claim types. It also notes that policies may cover other employment-related conduct, such as defamation, invasion of privacy, failure to promote, and negligent evaluation. [3] Here is a simple example. An employee is fired after repeated performance issues. The owner knows the decision was based on the work. But the former employee claims the firing was discriminatory or retaliatory. Even if the business did nothing wrong, it may still need to respond. That could mean attorney fees, agency filings, a demand letter, or a lawsuit. That is one of the most important parts of EPLI. A claim does not have to be successful to be expensive. IRMI notes that EPLI policies contain shrinking limits provisions. That means defense costs, which are often a substantial part of a claim, reduce the policy's available limits. [3] Some EPLI policies also cover claims from job applicants. This matters if someone says they were not hired because of age, disability, pregnancy, race, gender, religion, or another protected category. Some policies include third-party coverage too. This may help if a customer, client, or vendor claims harassment or discrimination by someone at the business. Not every policy includes it, so owners should ask.
Employment Practices Liability Insurance: What Growing Businesses Should Know Hiring employees is a major step for a small business. It means more help, more capacity, and more room to grow. It also means more responsibility. Most owners plan for payroll, taxes, workers' compensation, and training when they hire. Those costs are easy to see. The harder risk to spot is the one tied to employment decisions. Every business with employees makes decisions about: Hiring Pay Schedules Promotions Discipline Performance reviews Workplace complaints Termination Any of those decisions can lead to a claim. That is where Employment Practices Liability Insurance, often called EPLI, becomes important. Employment Practices Liability Insurance helps protect a business from certain claims made by employees, former employees, or job applicants. These claims may include wrongful termination, discrimination, harassment, retaliation, failure to hire, or failure to promote. In plain English, EPLI helps protect your business when someone says they were treated unfairly at work. This is not only a big-company issue. Small businesses can face employment-related claims too. In fact, they may be less prepared because they often do not have a full HR team, formal records, or consistent employment practices. The Insurance Information Institute explains that Employment Practices Liability Insurance protects employers against claims that workers' legal rights were violated. Those claims can include harassment, discrimination, wrongful termination, failure to hire or promote, wrongful discipline, and negligent evaluation. [1] Why EPLI Belongs in the Small Business Conversation Small businesses often feel personal. Owners know their teams. Managers solve problems quickly. Conversations happen in real time. That can be a strength. It can also create risk. A business owner may believe a decision was fair. An employee may see it differently. A missed promotion may feel like discrimination. A termination may feel like retaliation. A casual comment from a manager may be viewed as harassment. Employment Practices Liability Insurance does not mean a business has done something wrong. It means the business understands that workplace claims can happen, even when leaders are trying to make fair decisions. Small businesses may also have weaker documentation. Performance conversations may happen in person but never get written down. Hiring decisions may not follow the same process each time. Terminations may happen quickly, without a clear paper trail. That can make a claim harder to defend. The Equal Employment Opportunity Commission reported that it secured $660 million for 17,680 victims of employment discrimination in fiscal year 2025. For a small business, even one claim can create real financial strain.
This generation doesn’t wait for a paycheck. They create income on their own terms. Selling products online. Editing videos for clients. Running social media accounts. Picking up freelance work between classes or jobs. It’s flexible. It’s fast. And in a lot of cases, it works. But there’s one part no one really talks about: Most of it isn’t being tracked—or taxed—correctly. And that mistake doesn’t show up right away… it shows up later, all at once. The New Income Reality (That No One Really Explains) For Gen Z, income rarely comes from just one place. It’s usually a mix: A part-time job A few freelance clients Money from a side hustle Payments from apps or platforms Maybe even a little creator income Individually, none of it feels like a big deal. But combined? It absolutely is. Because from a tax perspective, it’s all income—and it all needs to be accounted for. Where Things Start to Go Wrong The problem isn’t effort. It’s that no one really teaches this. So a lot of people assume: “If it’s small, it doesn’t matter” “If I didn’t get a form, I don’t need to report it” “I’ll deal with it when I file” That last one is where most issues start. Because by the time you “deal with it,” the decisions that mattered have already been made. Mistake #1: Not Tracking Income Clearly When money comes in from multiple places, it’s easy to lose track. A few payments here. A deposit there. Something paid through an app that you forget about. But over time, it adds up. And without a clear record: You don’t know what you actually earned You can’t report accurately You’re more likely to miss income At the same time, many platforms are now reporting earnings directly. So if your numbers don’t match what’s reported… That’s when problems start. Mistake #2: Ignoring Estimated Taxes This is where most first-time earners get caught off guard. If you’re making money without taxes being withheld—like freelance work, side gigs, or creator income—you’re expected to pay taxes throughout the year. Not just once at filing. These are called estimated tax payments. And if you skip them, you may end up with: Penalties Interest A much larger bill than expected It’s not obvious—but it’s important. Mistake #3: Misunderstanding Write-Offs Write-offs get talked about a lot online. But they’re often misunderstood. A write-off isn’t: Everything you buy Anything loosely related to your work A way to avoid taxes entirely It has to be both: Ordinary and necessary for what you do. For example: A content creator can deduct editing tools or software A freelancer can deduct business-related subscriptions An online seller can deduct inventory costs But guessing—or copying advice from social media—can lead to mistakes. Mistake #4: Overlooking How Income Is Reported Today The way income is tracked has changed. More transactions are being reported: Payment apps Online platforms Digital marketplaces And in some cases, things like crypto or digital assets can also trigger reporting requirements. In other words: There’s less room for things to go unnoticed. Which makes it even more important to stay organized from the start. Why This Matters Earlier Than You Think Getting this wrong once? Usually fixable. But when it keeps happening, it builds: Back taxes Penalties Stress Missed opportunities to save The good news? Gen Z has an advantage most people don’t: Time to get this right early. The Opportunity: Build Good Habits Now When you understand your income and taxes early, you: Keep more of what you earn Avoid surprises at tax time Make better financial decisions Build confidence as your income grows It doesn’t have to be complicated. But it does have to be intentional. Final Thought Earning money in new ways is a huge opportunity. But without structure, it can also create unnecessary problems. The goal isn’t to overcomplicate things— It’s to get the basics right early, so everything gets easier as you grow. If you (or someone in your family or team) is earning income from multiple sources and is not sure how it all fits together, we're here for you. The earlier you get this right, the easier everything becomes. Request your free quote from Steven Brewer & Company CPAs today!