This document provides an overview and summary of tax compliance considerations for cannabis businesses, known as cannabusinesses. It covers several key topics:
1. Payroll compliance including the employee vs. contractor distinction and federal, state and local payroll taxes.
2. Income and sales tax compliance including collecting and paying sales tax, and income tax considerations for different business structures.
3. Apportionment considerations for businesses operating in multiple cities.
4. 280E tax code considerations, specifically the disallowance of deductions beyond cost of goods sold for cannabis businesses.
The document provides high-level information on each of these tax compliance areas for cannabusinesses.
Illinois Governor Rod Blagojevich's Gross Receipts Tax proposal would drive businesses out of Illinois, raise costs for consumers and drive yet another stake in the heart of the Illinois economy.
The New Rage in SALT: State Pass-Through Entity TaxCitrin Cooperman
During this webinar, Partner Eugene Ruvere and Principal Jaime Reichardt take deeper dive into the new elective tax regime in New York, in addition to neighboring states like Connecticut, New Jersey, and Rhode Island, among others.
Illinois Governor Rod Blagojevich's Gross Receipts Tax proposal would drive businesses out of Illinois, raise costs for consumers and drive yet another stake in the heart of the Illinois economy.
The New Rage in SALT: State Pass-Through Entity TaxCitrin Cooperman
During this webinar, Partner Eugene Ruvere and Principal Jaime Reichardt take deeper dive into the new elective tax regime in New York, in addition to neighboring states like Connecticut, New Jersey, and Rhode Island, among others.
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The principles often used to determine tax financial assets in such a company or person account reports are tax accounting. Instead of using one of the accounting systems, including GAAP or IFRS, tax accounting is based mostly on Internal Revenue Code (IRC). Tax accounting results in a taxable income estimate which differs from the revenue estimate stated on the income statements of an entity. The distinction is since tax laws can speed up or slow down the acknowledgement of such expenditures, which would usually be recognized in an accounting cycle.
The passage of the Tax Cuts and Jobs Act will have widespread and long lasting implications throughout the country and will change how most taxpayers will prepare their tax returns. Citrin Cooperman recently hosted a seminar in Philadelphia to provide insight on where we are now, how we plan to move forward, and how the new law will impact your overall business and tax strategies. Join us to get answers to questions in the following areas:
Corporate and Businesses
Pass-Through Entities
International Issues
Individuals
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During this webinar, we discussed how to potentially mitigate the impact of the state and local tax (SALT) cap at the federal level. New York State has joined the list of states that have enacted an elective pass-through entity tax in an effort to do just that. We also dove into the possibility of changing residency to a low-tax or no-tax state. With state tax rates on the rise in some places and the realization that remote work is doable, many individuals are contemplating making a move. To succeed in making a change like this, one must be aware of the technical rules and be willing to significantly adjust one’s life. We talked through all these considerations.
Taxation for IT in Ukraine. Diia City. Conventa Legal presentationMikhail Ivanenko
Big hopes for the digital economy in Ukraine, aiming at 10% GDP in 3-5 years. To achieve that the government introduced favorable taxation as a part of its Diia City legal regime.
Companies will be able to choose 9% distributed profit tax - basically not to pay any corporate tax in case there is no distribution of profits like dividends, or some other forms. An option to choose net profit tax at 18% will remain as well if an IT company is willing to do so.
Taxation of salaries has been lowered drastically - personal income tax and military levy make 6.5% combined and around USD 50 shall be paid as a social security tax. For high salaries, this may mean that an effective tax rate will be in the range of 7-8% which is pretty competitive globally, leave alone EU and Eastern Europe.
The Long Lasting Impact of Tax Reform- NYC- Event- 1/24/18Citrin Cooperman
The passage of the Tax Cuts and Jobs Act will have widespread and long lasting implications throughout the country and will change how most taxpayers will prepare their tax returns. Citrin Cooperman recently hosted a seminar in NYC to provide insight on where we are now, how we plan to move forward, and how the new law will impact your overall business and tax strategies.
Payroll tax rates, filing deadlines and responsibilities in 2019Merchant Advisors
Here is a detailed guide on the payroll taxes withholding, rates, reporting and responsibilities for employers and employees for 2019. For more information, visit at https://www.onlinecheck.com/blog/small-business-resources/payroll-taxes/
Speeding Through 2020 Auto Webinar Series - Year-End ReviewCitrin Cooperman
As 2020 nears completion, we discuss what automotive dealerships need to record and what files need to be kept in order to ensure that 2020 is closed properly and that the new year starts off right.
Introduction to tax accounting accounts next genArpit Umrewal
The principles often used to determine tax financial assets in such a company or person account reports are tax accounting. Instead of using one of the accounting systems, including GAAP or IFRS, tax accounting is based mostly on Internal Revenue Code (IRC). Tax accounting results in a taxable income estimate which differs from the revenue estimate stated on the income statements of an entity. The distinction is since tax laws can speed up or slow down the acknowledgement of such expenditures, which would usually be recognized in an accounting cycle.
The passage of the Tax Cuts and Jobs Act will have widespread and long lasting implications throughout the country and will change how most taxpayers will prepare their tax returns. Citrin Cooperman recently hosted a seminar in Philadelphia to provide insight on where we are now, how we plan to move forward, and how the new law will impact your overall business and tax strategies. Join us to get answers to questions in the following areas:
Corporate and Businesses
Pass-Through Entities
International Issues
Individuals
High Net Worth Webinar Series: SALT Thoughts - Pass-Through Entity Taxes & Re...Citrin Cooperman
During this webinar, we discussed how to potentially mitigate the impact of the state and local tax (SALT) cap at the federal level. New York State has joined the list of states that have enacted an elective pass-through entity tax in an effort to do just that. We also dove into the possibility of changing residency to a low-tax or no-tax state. With state tax rates on the rise in some places and the realization that remote work is doable, many individuals are contemplating making a move. To succeed in making a change like this, one must be aware of the technical rules and be willing to significantly adjust one’s life. We talked through all these considerations.
Taxation for IT in Ukraine. Diia City. Conventa Legal presentationMikhail Ivanenko
Big hopes for the digital economy in Ukraine, aiming at 10% GDP in 3-5 years. To achieve that the government introduced favorable taxation as a part of its Diia City legal regime.
Companies will be able to choose 9% distributed profit tax - basically not to pay any corporate tax in case there is no distribution of profits like dividends, or some other forms. An option to choose net profit tax at 18% will remain as well if an IT company is willing to do so.
Taxation of salaries has been lowered drastically - personal income tax and military levy make 6.5% combined and around USD 50 shall be paid as a social security tax. For high salaries, this may mean that an effective tax rate will be in the range of 7-8% which is pretty competitive globally, leave alone EU and Eastern Europe.
The Long Lasting Impact of Tax Reform- NYC- Event- 1/24/18Citrin Cooperman
The passage of the Tax Cuts and Jobs Act will have widespread and long lasting implications throughout the country and will change how most taxpayers will prepare their tax returns. Citrin Cooperman recently hosted a seminar in NYC to provide insight on where we are now, how we plan to move forward, and how the new law will impact your overall business and tax strategies.
Payroll tax rates, filing deadlines and responsibilities in 2019Merchant Advisors
Here is a detailed guide on the payroll taxes withholding, rates, reporting and responsibilities for employers and employees for 2019. For more information, visit at https://www.onlinecheck.com/blog/small-business-resources/payroll-taxes/
Income Tax saving tips for your online businessSam Elahee
Five Star Tax Service Online Income Tax Tips. www.taxsupport.ca your one stop source for Canada, USA and Cross Border Taxation. These income tax tips are applicable to all businesses and specially businesses operation on line. It is important to keep detail record of all expenses so that you can offset some of your income and lower your tax rate. Tax in most countries are progressive. These income tax tips will help you reduce your marginal tax rates. Moving from a higher marginal tax rate to a lower marginal tax rate means savings of thousands of dollars in taxes.
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effective April 1, 2016, for state tax purposes.
The SUT will continue to be in place for municipal tax purposes after March 31, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the manufacturing industry.
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effective April 1, 2016, for state tax purposes.
The SUT will continue to be in place for municipal tax purposes after April 1, 2016.
This guidance from Kevane Grant Thornton LLP specifically relates to the renewable green energy industry.
Global companies investing in the United States face unique opportunities and challenges. Doing business in the US reviews the key tax issues and provides insights to help investors navigate the US business environment.
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Also discussed: the benefits and limitations of dynamic vs. static analysis and scoring of tax changes, which tax features harm growth the most, which potential reforms help the most, and which revenue offsets hurt the least. Differing views of how to predict the effects of tax changes on economic growth, how different models view the effect of the federal budget deficit and the Federal Reserve on the outcomes, and the proper role of monetary policy.
Register for Tax Foundation University Online here: https://taxfoundation.org/tax-foundation-university-remote/#enroll
This is a presentation on latest topic GST. this ppt gives you an idea on what is tax?types of tax,taxonomy of Indian taxation, from what taxation is suffering from, what is GST with an illustration,advantages of GST and its credit mechanism.
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Best Crypto Marketing Ideas to Lead Your Project to SuccessIntelisync
In this comprehensive slideshow presentation, we delve into the intricacies of crypto marketing, offering invaluable insights and strategies to propel your project to success in the dynamic cryptocurrency landscape. From understanding market trends to building a robust brand identity, engaging with influencers, and analyzing performance metrics, we cover all aspects essential for effective marketing in the crypto space.
Also Intelisync, our cutting-edge service designed to streamline and optimize your marketing efforts, leveraging data-driven insights and innovative strategies to drive growth and visibility for your project.
With a data-driven approach, transparent communication, and a commitment to excellence, InteliSync is your trusted partner for driving meaningful impact in the fast-paced world of Web3. Contact us today to learn more and embark on a journey to crypto marketing mastery!
Ready to elevate your Web3 project to new heights? Contact InteliSync now and unleash the full potential of your crypto venture!
Salma Karina Hayat is Conscious Digital Transformation Leader at Kudos | Empowering SMEs via CRM & Digital Automation | Award-Winning Entrepreneur & Philanthropist | Education & Homelessness Advocate
When listening about building new Ventures, Marketplaces ideas are something very frequent. On this session we will discuss reasons why you should stay away from it :P , by sharing real stories and misconceptions around them. If you still insist to go for it however, you will at least get an idea of the important and critical strategies to optimize for success like Product, Business Development & Marketing, Operations :)
Reflect Festival Limassol May 2024.
Michael Economou is an Entrepreneur, with Business & Technology foundations and a passion for Innovation. He is working with his team to launch a new venture – Exyde, an AI powered booking platform for Activities & Experiences, aspiring to revolutionize the way we travel and experience the world. Michael has extensive entrepreneurial experience as the co-founder of Ideas2life, AtYourService as well as Foody, an online delivery platform and one of the most prominent ventures in Cyprus’ digital landscape, acquired by Delivery Hero group in 2019. This journey & experience marks a vast expertise in building and scaling marketplaces, enhancing everyday life through technology and making meaningful impact on local communities, which is what Michael and his team are pursuing doing once more with Exyde www.goExyde.com
What You're Going to Learn
- How These 4 Leaks Force You To Work Longer And Harder in order to grow your income… improve just one of these and the impact could be life changing.
- How to SHUT DOWN the revolving door of Income Stagnation… you know, where new sales come into your magazine while at the same time existing sponsors exit.
- How to transform your magazine business by fixing the 4 “DON’Ts”...
#1 LEADS Don’t Book
#2 PROSPECTS Don’t Show
#3 PROSPECTS Don’t Buy
#4 CLIENTS Don’t Stay
- How to identify which leak to fix first so you get the biggest bang for your income.
- Get actionable strategies you can use right away to improve your bookings, sales and retention.
5. Employee vs. Independent Contractor
(IRS Publication 15)
Independent Contractor
Doctors, lawyers, accountants, other professionals who are in an
independent trade or profession are generally considered independent
contractors
Subject to self-employment tax
Completes a W-9 form and receives a 1099
6. Employee vs. Independent Contractor
(IRS Publication 15)
Employee
You are not an independent contractor if you perform services that can be controlled
by an employer (what will be done, how, when, where it will be done)
Employer has the legal right to control the details of services performed
Completes W-4 forms and receives a W-2
7. Three Categories
Provide Evidence
of the Degree of
Control and
Independence
BEHAVIORAL
Does the company control or have the right to control
what the worker does and how the job is done?
FINANCIAL
Are the business aspects of the workers job
controlled by the payer (i.e. how the worker is paid,
are expenses reimbursed, who provides
tools/supplies etc.)?
Employee vs. Independent Contractor
(IRS Publication 15)
TYPE OF RELATIONSHIP
Are there written contracts or employee type benefits
(i.e. pension, insurance, PTO, etc.) and will the
relationship continue?
8. Not Sure?
File Form SS-8 Determination of Worker Status
May take up to 6 months to get a determination
10. Payroll Taxes – Federal, State, and Local
Federal Payroll Taxes
Paid electronically through EFTPS monthly or bi-weekly
Can pay in cash at the IRS office in Detroit (must make appointment)
Must file quarterly Form 941 tax return
Must file annual Form 940 tax return
US Internal Revenue Service
in Detroit
500 Woodward Ave
Hours: M-F, 8 AM – 4:30 PM
11. Payroll Taxes – Federal, State, and Local
State Payroll Taxes
Paid electronically through MTO (due on or before the 20th of each month)
Can pay in cash at a local SOM Treasury office (recommend to call for an
appointment)
Must file a monthly SUW tax return
Must file an annual SUW tax return
Must file and pay quarterly unemployment (SUTA) tax return through MIWAM
12. Payroll Taxes – Federal, State, and Local
Local Payroll Taxes
24 Michigan cities levy income tax
13. Payroll Taxes – Federal, State, and Local
1% on residents and .5% on non-residents
Albion
Battle Creek
Benton Harbor
Big Rapids
East Lansing
Flint
Grayling
Hamtramck
Hudson
Ionia
Jackson
Lansing
Lapeer
Muskegon
Muskegon Heights
Pontiac
Port Huron
Portland
Springfield
Walker
14. Local Payroll
Taxes
DETROIT
2.4% residents; 1.2% nonresidents
GRAND RAPIDS
1.5% residents; .75% nonresidents
Payroll Taxes – Federal, State, and Local
HIGHLAND PARK
2% residents; 1% nonresidents
SAGINAW
1.5% residents; .75% nonresidents
15. Payroll Taxes – Federal, State, and Local
Local Payroll Taxes
Must file and pay monthly payroll tax return by either the 15th or EOM
Must file an annual reconciliation report by Jan 31 or Feb 28
17. Income and Sales Tax Compliance
Sales Tax Compliance
6% sales tax must be collected and paid monthly
Paid electronically through MTO (due on or before the 20th of each month)
Can pay in cash at a local SOM Treasury office (recommend to call for an
appointment)
Must file a monthly SUW tax return
Must file an annual SUW tax return
Adult Use imposes a 10% “marijuana” excise tax to be paid quarterly (30 days after
quarter end)
18. Income and Sales Tax Compliance
Income Tax Compliance
C Corp
Pays income tax at the entity level
Corporate Tax Rates: 21% Federal, 6% State, 1-2% Local
Quarterly estimated tax payments required based on tax liability
State and local income tax do not follow 280E
19. Income and Sales Tax Compliance
Income Tax Compliance
LLC/S Corp
Income tax flows through to the individual owners via K-1
Quarterly estimated tax payments required based on tax liability
20. Income and Sales Tax Compliance
Income Tax Compliance
Sole Proprietor
Income and expenses reported directly on Schedule C of 1040
Quarterly estimated tax payments required based on tax liability
22. Apportionment &Considerations When Operating inMorethan One
City
Apportionment is the determination of the proportional sales
attributable to each municipality over total sales
Apportionment of income, expenses, assets and liabilities
Tax rates vary between cities as noted earlier
23. Apportionment &Considerations When Operating inMorethan One
City
May be required to offer health benefits under the Affordable Care Act
50 or more FTE employees
1095 Forms are issued to employees
Penalties can be substantial for non-compliance
25. What is the Cost of Goods
Sold (COGS)?
280E Considerations
26. 280E Considerations: What is the Cost of Goods Sold
(COGS)?
Cost of goods sold is the accumulated total of all costs used to create a
product or service, which has been sold
These costs fall into the general sub-categories of direct labor, materials, and
overhead.
Cost of Goods Sold is also referred to as Cost of Sales or Cost of Services.
The cost of services is considered to be the labor, payroll taxes, supplies, materials,
equipment, shipping and other direct costs related to the service
27. Latest Court
Case –
Harborside
Health Center
vs. IRS
26 U.S. Code § 162(a) allows a deduction for all the
ordinary and necessary expenses paid or incurred
during the taxable year in carrying on any trade or
business.
280E prohibits businesses whose activities “consist
of” trafficking in controlled substances that are
prohibited by federal or state law to take deductions
under § 162(a)
280E Considerations
28. 280E Considerations: What is the Cost of Goods Sold
(COGS)?
Separate legal business from marijuana business
Provisioning Centers are impacted the greatest by 280E
Testing Facilities, Growers, Processors and Transporters are less affected by 280E
30. State of MichiganAnnual Financial Review Requirement
Review or an Agree Upon Procedure of financial statements and other financial
documents due 30 days after the fiscal year end of September 30.
No official guidance from the State yet
State is looking to ensure financial compliance from owners and operators
No back door deals
No payments to non-owners
No off-record income and payments