Careful planning can help businesses reduce their tax liabilities. This planning should take place year-round. Businesses can deduct a variety of expenses during the year. Deductions can be made for medical and dental care, property taxes, state income taxes, charitable contributions, and more. Many people do not know about these expenses, but these can significantly reduce the amount of taxable income. Here are some tips to help you reduce your tax liability.
Offering 401(k) plans and IRA plans to employees can help lower the amount of taxable income and create opportunities for tax credits. These plans allow employees to put money aside for retirement before taxes are paid. Another good strategy for reducing tax liability is to halt pay raises. It is a great way to prevent the increase in payroll taxes and replace it with improved benefits. Regardless of the method you choose, these strategies can help organizations reduce their tax liability.