Paychex, Inc. has pointed out a way for small businesses to lower their taxexposure at the last minute: establish a retirement plan.

Employers are always looking for waysto cut their tax bill for the year, even in the limited amount oftime left before the calendar page changes.

They’d also certainly like to avoid tax headaches in the year tocome by complying with regulations before deadlines pass.

To help them out on both counts, Paychex identified fivedifferent tax regulations that small business owners need toconsider before the current year ends.

Highlighted among those regulations is the one that not onlyoffers a method for potential tax savings for small businessowners, but is likely to be popular among their employees as well:the implementation of a retirement plan.

Small business owners who establish a new 401(k) plan byDecember 31 of this year may not be aware that they can claim afederal tax credit for the first three years of the plan to offsetthe costs of launching the plan.

Among startup costs eligible to be counted in that tax credit,Paychex explained, are expenses necessary to set up and administerthe plan, as well as the costs for employee education about theplan.

In addition, a percentage of the employer’s contributions aretax deductible as well.

Other regulations highlighted in Paychex’ checklist includethese:

1. the need for detailed informational reporting on health carecoverage offered to full-time employees

2. the extension of a number of popular business-friendly taxbreaks

3. potential changes to online sales tax levies

4. and the requirement by a number of states and the District ofColumbia that W-2s and Annual Reconciliations both be filed byJanuary 31