WorldWide Drilling Resource

Drilling Into Money Not Boring by Mark E. Battersby Smarter Tax Deductions When it comes to smarter workers, everyone benefits, thanks in large part to our tax laws. The drilling business pros- pers with smarter, better-trained employ- ees - and a tax deduction when footing the bill for employee education or training costs. It little matters whether a drilling pro- fessional is self-employed, an employee of his or her own drilling operation or business, or an employee, tax deduc- tions and unique write-offs abound for anyone willing to look for them. Of course, expenses incurred to meet the minimum requirements of an individual’s present trade or business, or those which qualify them for a new trade or business, are not deductible. A drilling business may deduct the cost of "ordinary and necessary" expenses paid for employee education and training - even amounts paid to others. It may also deduct the cost of education for the drilling operation’s owners if the education or training "maintains or improves required skills", or the education is required by law or regulations for maintaining a license, status, or job. A key question in many drilling businesses is whether the education-related benefits paid by the employer are deductible from the employer's business taxes and, probably even more important, whether the benefits are taxable to the employee. For employers, the amount paid or reimbursed for an employee’s education expenses is a tax-deductible business ex- pense. As an added bonus, if the educational expenses qualify, employees may be able to exclude the payment or reimburse- ment as a working condition fringe benefit. Programs allow employers to provide employees with educational assistance of up to $5250 annually which can be ex- cluded from the employee’s income. Employers can claim a business deduction for educational employee benefits paid, and are not required to pay FICA (Social Security and Medicare) or FUTA (Unemployment) payroll taxes for benefits provided under the program. Fortunately, education expenses are legitimate business expenses for most individuals. Unfortunately, education to main- tain or improve skills needed in that present work doesn’t qualify if it will also qualify the individual for a new trade or business. Education needed to meet the minimum educational requirement in someone’s present trade or business isn’t qualifying work-related education under our tax rules. Regardless of who "foots" the bill for education, the rewards of smarter, bet- ter-trained employees are something every drilling business can reap. In addi- tion to its tax benefits, education also makes an excellent fringe benefit every drilling business can employ to attract and retain employees. Mark Mark E. Battersby may be contacted via e-mail to michele@ worldwidedrillingresource.com 4< /*2'3* "& > > > > ,'< ? /2+ '6* /3+6 /3+6 ')1/3- " " !8=2+ /7843 4* 4* ')1/3- !+8 5)7 !8'3*'6* $'2:+ 9((+6 6':+2 $'2:+ 9((+6 !+'87 9((+6 $'2:+ 37+687 #6+8.'3+ $'2:+ 37+687 $'2:+ !56/3- ! ! $'2:+ 4:+6 '71+8 ? !;/:+2 ')1/3- ? !+6/+7 ? !+6/+7 ? !+6/+7 ? !+6/+7 ? !+6/+7 ? !+6/+7 < /3+6 < /3+6 < /3+6 < /3+6 < /3+6 6/)+7 !9(0+)8 "4 .'3-+ %/8.498 48/)+ !@ @ < < < < < 24 JULY 2017 WorldWide Drilling Resource ® Congratulat ions to: Lor i Foraker Middletown,, DE Winner for June! Time for a Little Fun! June Puzzle Solution: Bit Brokers International Sullivan-Palatek, Inc. Win a prize! Send your completed puzzle to: WWDR PO Box 660 Bonifay, FL 32425 or fax to: 850-547-0329 Can you identify which ads in this issue these two photos came from?