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May
10

Starting, Operating, or Closing a Business

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Starting, Operating, or Closing a Business

 

Starting a Business
Starting a business can be exciting. If you're considering starting a business, start here. This section provides information, from the IRS, on everything from a checklist for a new business, to selecting a business structure, and more.

Operating a Business
This section contains information you need to operate your business. Learn about operating a business with employees, business expenses and tax credits, filing and paying taxes, recordkeeping, and choosing an accounting method.

Closing a Business
There is more involved in closing your business than just locking the doors. This section provides procedures for getting out of business, including what forms to file and how to handle additional revenue received or expenses you may incur.

 

The information above is from the IRS website and is linked to the IRS website.

 

 

 

Feb
24

Payroll Tax Cut Extended to the End of 2012

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Payroll Tax Cut Extended to the End of 2012; Revised Payroll Tax Form Now Available to Employers

WASHINGTON — The Internal Revenue Service today released revised Form 941 enabling employers to properly report the newly-extended payroll tax cut benefiting nearly 160 million workers.

Under the Middle Class Tax Relief and Job Creation Act of 2012, enacted yesterday, workers will continue to receive larger paychecks for the rest of this year based on a lower social security tax withholding rate of 4.2 percent, which is two percentage points less than the 6.2 percent rate in effect prior to 2011. This reduced rate, originally in effect for all of 2011, was extended through the end of February by the Temporary Payroll Tax Cut Continuation Act of 2011, enacted Dec. 23.

No action is required by workers to continue receiving the payroll tax cut. As before, the lower rate will have no effect on workers’ future Social Security benefits.  The reduction in revenues to the Social Security Trust Fund will be made up by transfers from the General Fund.

Self-employed individuals will also benefit from a comparable rate reduction in the social security portion of the self-employment tax from 12.4 percent to 10.4 percent. For 2012, the social security tax applies to the first $110,100 of wages and net self-employment income received by an individual.

The new law also repeals the two-percent recapture tax included in the December legislation that effectively capped at $18,350 the amount of wages eligible for the payroll tax cut. As a result, the now repealed recapture tax does not apply.

The IRS will issue additional guidance, as needed, to implement the newly-extended payroll tax cut, and any further updates will be posted on IRS.gov. 

 

Oct
06

Webinar on Reporting Health Plan Coverage on Form W-2s

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The Reporting of Employer-Sponsored Health Plan Coverage on Form W-2 (Affordable Care Act Provision 9002) webinar will explain what employers and employees need to know about the provision including:

  • What changes employees will see in their Form W-2
  • When employers must begin reporting the benefits on the Form W-2
  • Transition relief for certain employers, plans, and situations
  • Which employers need to include the benefits on the Form W-2
  • How employers report the benefits on the Form W-2
  • What valuation methods employers can use to determine the amounts to report on the Form W-2

 

Sign up for the IRS Webinar:  http://www.visualwebcaster.com/IRS/82090/reg.asp?id=82090

YouTube Video:  W-2 Health Insurance Reporting: English

Reporting is Voluntary for All Employers for 2011 and Small Employers for 2012: http://www.irs.gov/newsroom/article/0,,id=237870,00.html

Employer-Provided Health Coverage Informational Reporting Requirements: Questions and Answers:  http://www.irs.gov/newsroom/article/0,,id=237894,00.html

 

Jun
29

Florida's 2011 Back-to-School Sales Tax Holiday, August 12th-August 14th

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2011 Back-to-School Sales Tax Holiday, August 12th-August 14th


Florida's back-to-school sales tax holiday will begin at 12:01 a.m., Friday, August 12, 2011, and end at midnight Sunday, August 14, 2011. During this period, no sales tax will be collected on sales of clothing, footwear, and certain accessories selling for $75 or less, or on certain school supplies selling for $15 or less. Find out more:

 

 

Jun
29

FUTA Tax Rate Decrease Effective July 1, 2011

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FUTA Tax Rate Decrease Effective July 1, 2011 

The Federal Unemployment Tax Act (FUTA) rate is currently 6.2% on the first $7000 of an employee’s wages.  This rate has remained constant for years. However, effective July 1, 2011 it will lower to 6.0% on the first $7000 of wages paid to an employee due to the expiration of a temporary 0.2 FUTA surtax which expires on Jun 30, 2011.

 For most employers, state unemployment taxes are deductible against FUTA taxes, effectively lowering the FUTA rate that the employer pays by as much as 5.4%. This lowers the FUTA tax rate to 0.8% for some employers, and as of July 1, 2011 will lower it to 0.6%. State unemployment taxes must have been paid in full, on time, and on the same wages for an employer to take the offset of state unemployment wages against their FUTA taxes. 

 

Jun
29

IRS Increases Mileage Rate to 55.5 Cents per Mile

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IRS Increases Mileage Rate to 55.5 Cents per Mile

 

IR-2011-69, June 23, 2011

WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.

The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.

"This year's increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices," said IRS Commissioner Doug Shulman. "We are taking this step so the reimbursement rate will be fair to taxpayers."

While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.

The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

The new rates are contained in Announcement 2011-40 on the optional standard mileage rates.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Mileage Rate Changes

Purpose

Rates 1/1 through 6/30/11

Rates 7/1 through 12/31/11

Business

51

55.5

Medical/Moving

19

23.5

Charitable

14

14 

 

 

 



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