Tuesday, January 25, 2011
Monday, January 17, 2011
Wednesday, January 12, 2011
Tuesday, January 4, 2011
Making Decisions About Benefits?
Simons Bitzer & Associates is pleased to be hosting an informative presentation by Charo Boyd, Public Affairs Specialist for the Social Security Administration.
Date: January 13th, 2011
Time: 1:00-2:00
Location: 8350 South Emerson Avenue, Suite 100
There is no fee to attend and refreshments will be served.
During this workshop, Ms. Boyd will address the following topics:
Choices regarding when to begin receiving benefits
Spousal/Survivor benefits
Eligibility rules regarding Full Retirement Benefits
Charo N. Boyd is responsible for informing the public about SSA programs and benefits. She is often the guest speaker for retirement and disability seminars. She has also trained HR Managers, Financial Planners, Tax Preparers, Social Workers, Case Managers, Disability Advocates, and Attorneys on various SSA topics.
We are so pleased to have her presenting at our firm next Thursday. If you or someone you know would like to attend, please respond to Raegan Potter at (317) 782-3070 or rpotter@simonsbitzer.com.
Date: January 13th, 2011
Time: 1:00-2:00
Location: 8350 South Emerson Avenue, Suite 100
There is no fee to attend and refreshments will be served.
During this workshop, Ms. Boyd will address the following topics:
Choices regarding when to begin receiving benefits
Spousal/Survivor benefits
Eligibility rules regarding Full Retirement Benefits
Charo N. Boyd is responsible for informing the public about SSA programs and benefits. She is often the guest speaker for retirement and disability seminars. She has also trained HR Managers, Financial Planners, Tax Preparers, Social Workers, Case Managers, Disability Advocates, and Attorneys on various SSA topics.
We are so pleased to have her presenting at our firm next Thursday. If you or someone you know would like to attend, please respond to Raegan Potter at (317) 782-3070 or rpotter@simonsbitzer.com.
Monday, January 3, 2011
FUTA and SUTA Increases
The IRS announced a reduction in the 2010 FUTA (Federal Unemployment Tax Act) credit for three states: Michigan, South Carolina, and Indiana. This is a result of unpaid federal loans by these states. The Social Security Act requires a reduction in the FUTA tax credit when a state has outstanding federal loans for two consecutive Januaries. This reduction means an overall increase in the FUTA taxes for these states.
Employers are required to pay a flat rate of 6.2% on the first $7,000 of each employee's annual wages. Employers can receive a credit of 5.4% for paying state unemployment on time. The reduction in the FUTA tax credit is .3% for the first year and an additional .3% for each succeeding year until the loan is repaid.
Indiana: An additional $21 per employee ($7,000 x .3% = $21) the first year.
The FUTA credit reduction will become elective retroactive to January 1, 2010 and will be due on federal IRS Form 940 by January 31, 2011.
Also note that the SUTA tax is based on the first $9,500 in wages beginning January 1, 2011.
With questions or for additional information, please contact a tax specialist from Simons Bitzer at (317) 782-3070 or visit us on the web at www.SimonsBitzer.com.
Employers are required to pay a flat rate of 6.2% on the first $7,000 of each employee's annual wages. Employers can receive a credit of 5.4% for paying state unemployment on time. The reduction in the FUTA tax credit is .3% for the first year and an additional .3% for each succeeding year until the loan is repaid.
Indiana: An additional $21 per employee ($7,000 x .3% = $21) the first year.
The FUTA credit reduction will become elective retroactive to January 1, 2010 and will be due on federal IRS Form 940 by January 31, 2011.
Also note that the SUTA tax is based on the first $9,500 in wages beginning January 1, 2011.
With questions or for additional information, please contact a tax specialist from Simons Bitzer at (317) 782-3070 or visit us on the web at www.SimonsBitzer.com.
Thursday, December 23, 2010
What Do The New Tax Laws Mean For You?
Congress has approved, and President Obama has signed into law, a multi-billion dollar tax cut package, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act) (H.R. 4853). The new law follows through on the framework agreed to December 6 by President Obama and GOP leaders in Congress.
For most individuals, the most immediate impact of the new law will be the payroll tax cut and the extension of the reduced individual income tax rates. Below are some highlights:
• The 2010 Tax Relief Act reduces the employee-share of the OASDI portion of Social Security taxes from 6.2% to 4.2% for wages earned in calendar year 2011 up to the taxable wage base of $106,800. Self-employed individuals would pay 10.4% on self-employment income up to the threshold.
• Current income tax rates will remain in place for two years (2011 and 2012) with a top rate of 35% on ordinary income and 15% on qualified dividends and long-term capital gains.
• The 2010 Tax Relief Act boosts 50% bonus depreciation to 100 percent for qualified investments made after September 8, 2010 and before January 1, 2012. Unlike Code Section 179 expensing, it is not limited to use by smaller businesses or capped at a certain dollar level. It also makes 50% bonus depreciation available for qualified property placed in service after December 31, 2011 and before January 1, 2013.
• The 2010 Tax Relief Act extends the Bush-era individual and capital gains/dividend tax cuts for all taxpayers for two years.
• The bill provides an Alternative Minimum Tax “patch” intended to prevent the AMT from encroaching on middle income taxpayers by providing higher exemption amounts and other targeted relief for 2010 and 2011. Without this patch, an estimated 21 million additional households would be subject to the AMT.
• The bill offers an extension of the $1,000 child tax credit for two years, through December 21, 2012. The qualifying child must be under age 17 at the close of the year and satisfy relationship, residency, support, citizenship and dependent tests. It continues to be phased out for taxpayers with adjusted gross income in excess of $110,000 for joint filers.
• The bill extends a number of individual credits including adoption, dependent care, education and qualified energy efficiency improvement credits.
• The bill also extends a number of deductions for individuals including state and local sales tax, higher education tuition, teachers’ classroom expense and specific charitable donations.
• The Act extends a number of business tax extenders generally for two years. These business tax extenders had expired at the end of 2009.
The new law gives taxpayers some certainty in tax planning for the next two years, especially concerning the individual income tax rates, capital gains/dividend tax rates and the estate tax; however, these provisions are temporary.
With questions or to schedule a consultation with one of our tax specialists to discuss how the new law may impact you specifically, please contact Simons Bitzer at (317) 782-3070.
For most individuals, the most immediate impact of the new law will be the payroll tax cut and the extension of the reduced individual income tax rates. Below are some highlights:
• The 2010 Tax Relief Act reduces the employee-share of the OASDI portion of Social Security taxes from 6.2% to 4.2% for wages earned in calendar year 2011 up to the taxable wage base of $106,800. Self-employed individuals would pay 10.4% on self-employment income up to the threshold.
• Current income tax rates will remain in place for two years (2011 and 2012) with a top rate of 35% on ordinary income and 15% on qualified dividends and long-term capital gains.
• The 2010 Tax Relief Act boosts 50% bonus depreciation to 100 percent for qualified investments made after September 8, 2010 and before January 1, 2012. Unlike Code Section 179 expensing, it is not limited to use by smaller businesses or capped at a certain dollar level. It also makes 50% bonus depreciation available for qualified property placed in service after December 31, 2011 and before January 1, 2013.
• The 2010 Tax Relief Act extends the Bush-era individual and capital gains/dividend tax cuts for all taxpayers for two years.
• The bill provides an Alternative Minimum Tax “patch” intended to prevent the AMT from encroaching on middle income taxpayers by providing higher exemption amounts and other targeted relief for 2010 and 2011. Without this patch, an estimated 21 million additional households would be subject to the AMT.
• The bill offers an extension of the $1,000 child tax credit for two years, through December 21, 2012. The qualifying child must be under age 17 at the close of the year and satisfy relationship, residency, support, citizenship and dependent tests. It continues to be phased out for taxpayers with adjusted gross income in excess of $110,000 for joint filers.
• The bill extends a number of individual credits including adoption, dependent care, education and qualified energy efficiency improvement credits.
• The bill also extends a number of deductions for individuals including state and local sales tax, higher education tuition, teachers’ classroom expense and specific charitable donations.
• The Act extends a number of business tax extenders generally for two years. These business tax extenders had expired at the end of 2009.
The new law gives taxpayers some certainty in tax planning for the next two years, especially concerning the individual income tax rates, capital gains/dividend tax rates and the estate tax; however, these provisions are temporary.
With questions or to schedule a consultation with one of our tax specialists to discuss how the new law may impact you specifically, please contact Simons Bitzer at (317) 782-3070.
Thursday, December 9, 2010
2010 Year-End Tax Planning for Business Owners
As another year winds down and the holidays approach, it is time to consider all the latest tax law changes and plan accordingly to minimize any tax liability. While congress continues to work on last minute changes to the tax laws, rest assured that we will be staying abreast of these changes for you. Although we've blogged about these new laws throughout the year, we thought it would be beneficial to highlight some particular areas so that you can begin your year-end planning.
Health Insurance Credit for Small Employers—If your business has less than 25 employees and pays less than $50,000 in average wages, you may be able to take this credit. There are many restrictions that will exclude many businesses from taking this credit, but it may be worth looking into.
HIRE Act—If your business hired any previously unemployed employees on or after February 4, 2010, you may not need to pay the employers’ portion of the Social Security tax. This relief could be as high as $6,622 per employee hired. This relief provision is available only in 2010.
Extension of Section 179 Depreciation—The Small Business Jobs Act of 2010 also extended and increased the amount of Section 179 depreciation that a small business is allowed to expense on its fixed asset purchases. You may want to consider the purchase of fixed assets that you need in your business.
In addition to the new laws above, the following are areas that the IRS has been scrutinizing more closely. Please pay particular attention to these areas.
Health Insurance Premiums for S Corporation Owners—It is critical to properly report the premiums on your W-2 so it is deductible for the S Corporation as compensation and allows the S Corporation owners to deduct this on their personal tax return. If your business is an S corp and it paid your health insurance premiums, we will work with you and your payroll provider to ensure this is completed properly by the end of the year.
Personal Auto Usage on W-2—If your business owns an auto that the owner is using, it is very important that the personal usage portion is calculated and added to your W-2. We will work with you and your payroll provider to ensure this is completed properly by the end of the year.
Detailed Inventory Records—If your business has inventory, the IRS is continuing to place an increased emphasis on actual physical inventory on hand at the end of the year. Therefore, be sure to physically count your inventory, retain the records, and provide us with the accurate total cost of inventory on hand December 31, 2010. Do not include consignments you are holding from other people in this number. In the event of an audit you must be able to provide copies of physical count sheets; therefore, we are placing an increased emphasis upon obtaining correct year end physical inventory amounts.
Corporate Minutes—We would also like to remind you that your corporate minutes must be maintained on an annual basis. These minutes are maintained by the officers of the corporation. Please keep in mind that only S and C corporations are required to maintain minutes.
If you have questions or would like to schedule a consultation with one of our tax experts, please call Simons Bitzer at (317) 782-3070.
Health Insurance Credit for Small Employers—If your business has less than 25 employees and pays less than $50,000 in average wages, you may be able to take this credit. There are many restrictions that will exclude many businesses from taking this credit, but it may be worth looking into.
HIRE Act—If your business hired any previously unemployed employees on or after February 4, 2010, you may not need to pay the employers’ portion of the Social Security tax. This relief could be as high as $6,622 per employee hired. This relief provision is available only in 2010.
Extension of Section 179 Depreciation—The Small Business Jobs Act of 2010 also extended and increased the amount of Section 179 depreciation that a small business is allowed to expense on its fixed asset purchases. You may want to consider the purchase of fixed assets that you need in your business.
In addition to the new laws above, the following are areas that the IRS has been scrutinizing more closely. Please pay particular attention to these areas.
Health Insurance Premiums for S Corporation Owners—It is critical to properly report the premiums on your W-2 so it is deductible for the S Corporation as compensation and allows the S Corporation owners to deduct this on their personal tax return. If your business is an S corp and it paid your health insurance premiums, we will work with you and your payroll provider to ensure this is completed properly by the end of the year.
Personal Auto Usage on W-2—If your business owns an auto that the owner is using, it is very important that the personal usage portion is calculated and added to your W-2. We will work with you and your payroll provider to ensure this is completed properly by the end of the year.
Detailed Inventory Records—If your business has inventory, the IRS is continuing to place an increased emphasis on actual physical inventory on hand at the end of the year. Therefore, be sure to physically count your inventory, retain the records, and provide us with the accurate total cost of inventory on hand December 31, 2010. Do not include consignments you are holding from other people in this number. In the event of an audit you must be able to provide copies of physical count sheets; therefore, we are placing an increased emphasis upon obtaining correct year end physical inventory amounts.
Corporate Minutes—We would also like to remind you that your corporate minutes must be maintained on an annual basis. These minutes are maintained by the officers of the corporation. Please keep in mind that only S and C corporations are required to maintain minutes.
If you have questions or would like to schedule a consultation with one of our tax experts, please call Simons Bitzer at (317) 782-3070.
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