February 3, 2023

State Sales Taxes

In the U.S., there is no value-added tax (VAT) on the federal or state level. However, most states have a “sales and use” tax system that creates an ultimate liability for the purchaser to pay a tax that can reach

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State Income Taxes

NEXUS Nexus, a connection between a business and the state, must exist for a state to impose income tax. States establish the rules to use when determining how much in-state activity creates a nexus by a business. Often, this tax

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Corporate Liquidation

When a corporation liquidates, the value of the assets it holds as of the date of liquidation is included in its taxable income for that year. U.S. shareholders then include the value of cash and other assets they receive on

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Meals and Entertainment

Meals during travel will be reimbursed as travel expenses based either on per diem allowance rates or actual amounts expensed (see Travel Expenses section for the rules on per diem allowance reimbursements). Business meals and entertainment are only reimbursable if

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Employee Benefits, Cafeteria Plans, and Travel and Related Expenses

A.            EMPLOYEE BENEFITS Employee benefits refer to forms of compensation given to employees that go beyond their usual wages or salaries. These additional benefits encompass a diverse array of advantages, including health insurance, retirement plans, paid leave, disability insurance, and

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Paying Service Providers

There are two main ways to compensate service providers in the U.S.: as employees and as independent contractors. The employees receive wages subject to payroll taxes. Employer’s expense on top of the wages is roughly 8%. Employee’s share of payroll

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