6. July 2010 by admin.

SUMMARY 

The Hiring Incentives to Restore Employment Act. Businesses can receive two tax incentives for each new worker. To qualify the employee must have been unemployed during the 60 days before beginning their new job or worked fewer than 40 hours during that 60 day period. It applies to anyone hired between February 3rd and December 31st of 2010 but the calculations of the credit do not start until March 19th.

The first benefit is a 6.2 percent payroll tax incentive, exempting businesses from their share of the employee’s social security taxes. The second is a tax credit of up to $1-thousand dollars for every worker retained for at least a year.A spokesman for the IRS says the HIRE Act is too new to know how well it’s working or how many companies are filing for the exemptions.

YOU MUST HAVE THE TAX EXEMPTION FORM W-11. 

We must have a signed copy to process this information.Click here to download the tax exemption form W-11. 

DETAIL http://hireact.org/ 

Posted in Payroll Tax, Sub S Corporations, LLC's, Income Tax, General | No Comments »

21. June 2010 by admin.

How do you prove a deduction?

First, a cancelled check, credit card charge or cash receipt.  BUT, that only proves you paid for something.

Second, an invoice showing what was paid. 

For example, you have a cancelled check to an insurance company.  It only proves you paid for something.  You might have paid your Grandmothers insurance policy instead of business liability.  So it takes the invoice AND proof of payment.

Every deduction it requires PROOF of PAYMENT and PROOF of the expense, meaning an invoice.

Posted in Payroll Tax, International Taxation, Sub S Corporations, LLC's, Income Tax | 1 Comment »

7. December 2009 by admin.

If you participate in an Employer sponsored Simple IRA, you can put an max of $11,500 in 2009 PLUS $2,500 for being over age 50.  That total is $14,000 maximum as an employee deferral.  Additionally, the employer has some matching options.  By far we have found the most popular Employer matching option to be… the employer matches up to the lower of 3% of your wages or whatever you put in as an employee.

Whatever is withheld from the paycheck must be withheld in no later than the end of December for 2009 and paid in by the employer no later than January 31^st, 2010.

i.e.  Your wages for 2009 are $36,000 x 3% = $1,080.  If you only contribute $800, Employer can only put in $800.  If you contribute $3,000, Employer can only put in $1,080.

There is no commitment to put to the maximum, nor is there a commitment that you continue to participate in a subsequent year.

Note:  Participation in an employer sponsored plan subjects you to limits on Regular IRA contributions.  Contact us for more info at www.USATaxHelp.com

Posted in Retirement Accounts, Payroll Tax, Sub S Corporations, LLC's, Income Tax | 1 Comment »

27. November 2009 by admin.

Client Disclosure Authorization

Posted in International Taxation, Payroll Tax, Sub S Corporations, LLC's, Income Tax, General | 1 Comment »

20. November 2009 by admin.

Set Up an Installment Agreement.  You really don’t need to hire anyone.  Some general rules…

If you owe Personal Income Tax of less than $10k, divide the amount by up to 36 months and offer to pay this… it is a GUARANTEED INSTALLMENT AGREEMENT.

If you owe Personal Income Tax of less than $25k, divide the amount by up to 60 months and offer to pay this…. It is a STREAMLINED INSTALLMENT AGREEMENT.  It is not guaranteed but it usually works.

If you owe Payroll Tax, divide the amount by up to 24 months.  This is usually successful.

In all circumstances, you will have to be “In Compliance”… meaning, you have filed timely, and paid timely since the agreement.  If you violate the “In Compliance”, you are back to square one.

Again, you do not really need to hire anyone in the above circumstances… but if you feel more comfortable in doing so, or your situation is you owe more than the above amounts, you can contact us www.USATaxHelp.com

Posted in Payroll Tax, Income Tax | No Comments »

13. February 2009 by admin.

Per IRS Notice 2008-1, Special Rules for Health Insurance Costs of 2-Percent Shareholder-Employees, health insurance must be included in the shareholder employee’s 2008 Form W-2 in order to take the self-employed health insurance deduction for shareholder employees owning greater than two percent of the S Corporation.

The requirement existed in prior years but there was a work around… we could include the health insurance on the K-1.  In either method the result tax wise is exactly the same… the W2 requirement adds no more revenue to the U.S. Treasury and it takes longer to prepare the year end payroll reports.  BUT THAT IS THE REQUIREMENT NOW… if not on W2, no deduction!

There is more information about Sub S Corporations on our website www.USATaxHelp.com

Posted in Payroll Tax, Sub S Corporations, Income Tax | 2 Comments »