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Congratulations – you’re in a new bracket! The spouses’ new marital status needs to be reported to their employers on a new Form W-4, Employee's Withholding Allowance Certificate. And the IRS was quick to point out that the new couple’s combined income may move them into a higher tax bracket.
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As a new business owner, understanding your tax obligations is critical and one of the first requirements you’ll need to understand are estimated tax payments.
What are estimated taxes? Who must pay them and how? Below are some facts from the IRS Estimated Tax Guide to help new small business owners understand their estimated tax obligations. Read more... Collecting sales tax is one of the most confusing aspects of transacting business – online and off!
In fact, questions about sales tax are among the most frequently asked on the SBA.gov Community “Filing and Paying Taxes” discussion thread. Questions abound. When does sales tax apply? What transactions are exempt? What happens if you are selling online or to someone outside your sales tax jurisdiction? Whether you’re starting a new business or expanding into e-commerce, here’s what you need to know about your sales tax obligations: Read more... If you have structured your business as a sole proprietorship, it’s considered an unincorporated business with no legal distinction between it and you, its only owner. Through the sole proprietorship, all profits, losses and liabilities are tied to you personally. Because of this, it’s even more imperative for a sole proprietor to keep business and personal finances separate in case of an IRS audit.
Click the link below to read more. quickbooks.intuit.com/r/financial-management/the-importance-of-keeping-business-and-personal-finances-separate/#sm.0000db9sy0tt1f7svie1gn8wrja1g What is ACH?
ACH allows you to receive electronic payments directly using a customer's checking account. Also known as e -checks, ACH is increasingly used for online payments and point of purchase payments. Rated for processing via ACH can be as low as $.25 per transaction. How can you start accepting ACH payments? Start with contacting your banker. For more details on ACH payments click on the link below. www.paypalobjects.com/en_US/vhelp/paypalmanager_help/about_ach_payments.htm The take-away: in the wake of shrinking resources, the IRS has become more aggressive attacking what it believes to be abusive transactions. Preparation and strategy are paramount to efficiently and effectively navigating a field fraught with traps for the unwary.
www.forbes.com/sites/janetnovack/2016/07/07/irs-waging-new-auditcampaigns-against-business-taxpayers/#55e56366f6f7 I recommend that you take advantage of this 60% off discount on QuickBooks Self-Employed.
Quickbooks Self-Employed is most used by the following: Schedule C filers 1099 Consultants Contact us to receive this exclusive offer. [email protected] Great events have become an important tool for not-for-profits in recent years in their quest to raise funds to support their missions. Because competition for donors' dollars is fierce, not-for-profits are finding that they need to do more than just ask for funds. To attract donations, they create value for donors in the form of events and perks, explore partnerships with for-profits, use technology to explore new avenues for fundraising, tell their story in an engaging way—and, of course, thank donors appropriately. -
Many businesses are willing to contribute gifts-in-kind or funds to a good cause, but not-for-profits need to be aware of regulations so they won't owe unrelated business income tax, or UBIT. Not-for-profits also need to choose the right partner to avoid reputational risk and structure the agreement to avoid liability. See more at: www.journalofaccountancy.com/issues/2016/jul/creative-fundraising-ideas.html#sthash.tQH8iJK1.dpuf 1. Meet with your Tax Accountant
Why wait until the busy tax season to meet with your tax advisor? Make a mid-year appointment when you’ll both have more time to discuss your financials. Most importantly, you’ll still have plenty of time to act on his or her suggestions within 2016. 2. Review your estimated tax payments for 2016 Now that we’ve hit the midway point, review what your business has made year to date and your forecast for the rest of the year. Then assess your estimated tax payments to avoid underpayment penalties or overpayments (you could be doing more with that money). Adjust your final two estimated tax payments for 2016 as needed. 3. Re-evaluate your business entity Many small businesses start out as sole proprietorships or partnerships, but then eventually transition to another entity. For example, if your business is not incorporated, you may want to consider incorporating to shelter you from some financial risk and possibly save money on taxes. Sometimes an entity is formed with one income target in mind, and you might need to reconsider the entity for a different income level. Failing to adjust your business entity for your revenue can be a costly mistake. Discuss the different legal entities with your accountant, so you can determine the right entity for your situation and the right time to make the change. 4. Review your salary and distribution amounts in an S Corporation If your business is structured and taxed as an S Corporation, make sure your salary and distribution payments are optimal. Too often, S Corp owners don’t properly balance the amount the S Corporation pays them as salary vs. distribution. The result can be either higher taxes or an increased audit risk. 5. Take charge of your recordkeeping To make the most of your business tax deductions, you’ll need accurate, comprehensive records. If you haven’t been keeping track of your business expenses, get caught up now. And if you find yourself struggling with this administrative task, look for a new solution ? whether it’s offloading the task to someone else, investing in a technology solution (like a receipt scanner), or dedicating 30 minutes each week to expense tracking. You’ll be grateful come tax time. 6. Plan equipment purchases Take advantage of a first-year expense write-off for equipment placed in service by the end of the year. Business owners and self-employed individuals are allowed a first-year depreciation deduction of 100% of the cost of qualifying property acquired and put in service. 7. Plan for retirement If you haven’t done so already, take time to set up a retirement plan or reassess your contributions. Contributing to an IRA, Keogh, simplified employee pension (SEP), or other retirement plan is an essential way to plan for your future and reduce your taxable income. The specific rules, contribution limits, and deadlines vary by plan. Make an appointment with your accountant to discuss the best retirement option for your business. mashable.com/2012/05/01/tips-small-business-finances/#tmsfM7T6N5qx |
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February 2018
CategoriesDisclaimerPlease note that nothing in this blog post should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax or legal advice. If you would like investment, accounting, tax or legal advice, you should consult with your own financial advisors, accountants, or attorneys regarding your individual circumstances and needs. No advice may be rendered by On Call Business Support unless a client service agreement is in place. |
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