Tips from March 12, 2010 The Small Business tips today discuss employee taxes.
If you have employees for your business, a variety of taxes will be withheld from their income. Remind your employees of the taxes upon hiring.
Some taxes withheld from employees' pay are: Social Security, FICA, Medicare, and federal and state income taxes.
Employees aren't the only ones who have taxes taken out. Businesses and employers must match the FICA and Medicare taxes and pay them along with employees.
Don't forget those who are out of work! Businesses are required to pay federal and state unemployment taxes.
Daily Overview: Taxes withheld from employers and employee salaries go towards different organizations. Keep this in mind, and look for returns when you file taxes.
By Cheryl Sowa · March 12 2010
small business tips, small business, taxes, employees
Tax time for small businesses is typically very stressful. With the April 15 deadline approaching, now is the time (if you haven't already) to get started on preparing your taxes. While researching for this week's tax tips and blog, I came across many tax tips that I didn't know about. Check out my Top 10 Tax Tips!
File Your Tax Return for Free - The IRS Free File program provides free federal income tax preparation and electronic filing for eligible taxpayers through a partnership between the IRS and the Free File Alliance LLC, a group of private sector tax software companies. Free tax preparation and filing via online software is available to anyone with a 2009 Adjusted Gross Income of $57,000 or less. If that’s you, head to the IRS website and choose from a list of approved tax preparers, and get started. If you aren’t sure which preparer to use, ans...
By Cheryl Sowa · March 12 2010
small business, taxes, irs, business
Tips from March 11, 2010 The Small Business tips today discuss types of tax audits.
Correspondence Audit: Simple procedure. The IRS requests you to document an item on your return by a specific date. Routine test for compliance.
Field Audit: The dreaded audit. IRS asks for documentation of various items on your return and meet with an IRS agent for thorough review of records. Be prepared to answer questions and have all paperwork needed.
Taxpayer Compliance Measurement Program Audit: Lengthy and detailed. Document and provide proof for every single item in your return. IRS and Congress use this for research and statistics, and are arbitrary regardless of how careful and perfect your tax return is.
Criminal Investigation Audit: Suspicion of tax evasion. The IRS will try to prove you have purposefully not paid your income taxes. If they are successful, you can face large fines and jail time. If you face this type of audit,...
By Cheryl Sowa · March 12 2010
small business tips, small business, audits, tax
Tips from March 10, 2010Are you collecting the maximum tax breaks from the stimulus law passed last year? Here are the 5 best business tax breaks.
Bonus depreciation. Allows a business to deduct 50% of the cost of a new asset in the year it is placed in service.
Section 179 expensing. A small business can elect to expense up to $250k of the cost of qualified assets.
Net operating losses. Under the new law, most businesses can elect to carry back losses for up to 5 years, instead of the usual 2 years.
Discharge of business debt. The stimulus law allows businesses to recognize discharge of indebtedness income over 5 years, rather than all in 2009.
Exclusion of gain on the sale of qualified small business stock. Increased to 75% for any gain from a sale between Feb 09 and Jan 11.
Daily Overview: Keep the 2009 stimulus law in mind when you are calculating your taxes this year.
Big thanks to...
By Cheryl Sowa · March 10 2010
small business tips, small business, taxes, finance
As we discussed last week, encouraging customer reviews is a key component in getting your small business found on Google and other search engines. So if reviews affect your small business’ search placement so much, what are the very best sites to encourage reviews from? What sites are picked up by Google’s Local Business Center most frequently?
We found the answer differed from industry to industry. The top review sites for restaurants or hotels were not the same for plumbers and doctors, etc.
By James · March 09 2010
google, reviews, lbc, local
Tips from March 9, 2010With many business tax returns due on April 15th, the Small Business tips today discuss common tax return errors and how to avoid them.
The most common business tax return error is also the easiest to avoid – make sure the return is signed by a company officer.
According to the IRS, the #2 business tax return error is failing to include the correct tax ID number. Is yours correct?
Incorrect sequencing or missing forms are easily preventable return errors. Review the instructions for each return one last time.
Late or inaccurate election to be treated as an S corporation. This is a big one, because an invalid election will mean your corporation will be subject to double-taxation for the year.
Daily Overview: With correct preparation and execution, tax time doesn't have to be stressful. Be prepared, organized, and turn to help if you need it.
Big thanks to Ky...
By Cheryl Sowa · March 09 2010
small business tips, small business, irs, lawyer
In the NewsCompliance Science: What Workforce Managers Need to Know About Immigration EnforcementAmong the administration's top priorities, immigration remains on track largely due to bipartisan interest in Congress. While an immigration reform bill may be out of the question this year—major expansion of aggressive enforcement efforts is well underway. ManageSmarter.comIn the NewsWalmart Places a Mega Buy with YahooThose tie-ins are part of an ad deal between Walmart and Yahoo is the largest the Bentonville, AR-based company has made to date with a single online publisher, according to...
By Cheryl Sowa · March 09 2010
small business brief, small business, congress, yahoo
Tips from March 8, 2010 The Small Business tips today discuss tax deductions for small businesses.
Business Travel – Deduct your transportation, accommodations, and business-related expenses from your taxes. Combining business and pleasure? Only deduct costs that are business related as long as more than half of your trip is dedicated towards work.
Equipment – Need new machines, equipment, or other necessary supplies to keep your business running? Deduct these necessities from your business taxes.
Rent – Keeping your business under a roof comes at a cost. Deduct your cost for rent to lower your taxable income.
Salaries – What you pay your employees is a necessary expense for your business. Keep records of your employee salaries, and changes throughout the year, and deduct these expenses.
Daily Overview: “Ordinary and necessary” expenses for your business can be deducted from y...
By Cheryl Sowa · March 08 2010
small business tips, small business, taxes, finance
