1.
for Small Business Owners
to consider in 2017
Five Tax Issues

2.
“Changes to current legislation and uncertainty about the future of tax reform
present unique challenges – and opportunities – for small business owners.
As we enter the final weeks of 2017 and look ahead to 2018, our goal is to provide
small business owners with the latest tax and regulatory considerations, so they
can position their businesses for continued success in the year ahead.”
Martin Mucci, Paychex President and CEO

3.
Given the uncertainty of federal tax reform, owners will have to make reasonable
assessments of what they anticipate based on the best information available on
tax reform and the potential impacts on their business. Accelerating deductions
where possible would allow these deductions to be taken at current rates, which,
in general, would be higher than subsequent years if tax reform legislation
passes. Similarly, deferring business income, where feasible under accounting
methods, would allow the income tax at a future rate, which is anticipated to be
lower if tax reform legislation is enacted.
WHY IT MATTERS
5 TAX ISSUES
Tax
Reform
1#
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4.
For tax year 2017, applicable large employers (ALEs), as defined in the
Employer Shared Responsibility (ESR) provision of the ACA, must provide a
detailed reporting of healthcare coverage. Unlike previous years, there is no
transition relief for how an employer files or offers coverage, so to avoid
substantial penalties, employers should do their due diligence in reporting
timely and accurate information on Forms 1094-C/1095-C.
WHY IT MATTERS
5 TAX ISSUES
Affordable
Care Act (ACA)
2#
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5.
Tax year 2017 marks the second year of the accelerated due date for W-2 filing.
The deadline is January 31, 2018. The Social Security Administration indicated
that the number of late W-2s filed in 2017 almost doubled compared to 2016,
so employers should ensure all W-2s are submitted on-time to avoid late or
non-filing penalties from the IRS.
WHY IT MATTERS
5 TAX ISSUES
Accelerated
W-2 Form Filing
3#
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6.
Employers who start a 401(k) plan, have no more than 100 employees, and
received at least $5,000 in compensation for the tax year are eligible for the
Credit for Small Employer Pension Plan Startup Costs. The credit, up to $500 per
year for each of the first three tax years, can be used to offset the costs of
establishing an eligible plan as well as educating employees about the plan.
WHY IT MATTERS
5 TAX ISSUES
401(k)
Tax Credit
4#
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7.
QSEHRAs provide non-ALE small employers that do not provide group
health coverage a method to reimburse employees for the cost of individual
insurance, and/or qualified medical expenses, on a pre-tax basis. The
programs require the benefit be provided to all eligible employees, have a
notice requirement, and allow only employer contributions to a statutory
maximum amount.
WHY IT MATTERS
5 TAX ISSUES
Qualified Small Employer
Health Reimbursement
Accounts (QSEHRA)
5#
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8.
www.paychex.com/worx/
For more helpful tips to advance the
long-term success of your small business, visit
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.