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Newsletter - August 2010
Our office will be closed Monday, September 6th, for Labor day.
*** Homebuyer Credit***
Home buyers facing paperwork delays got relief on the home buyer credit recently. Congress granted extra time to close the deal to claim the break. Buyers who signed a binding contract by April 30th, 2010 to purchase an existing home now have until September 30th, 2010, to close the deal and earn the $8,000 first time credit or the $6,500 credit for longtime owners. Many people, especially buyers of homes in foreclosure, were experiencing paperwork delays and required additional time. Lawmakers did not extend the April 30th cutoff date to contract for a home.
Washington Small Business Fair
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Date:
Time:
Location:
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Saturday, September 25, 2010
8 a.m. to 3:30 p.m.
Renton Technical College
3000 NE 4th Street
Renton, Washington
Come to the 14th annual Washington Small Business Fair – learn from the experts how to form and run a successful business. Connect with 30 federal, state and local government agencies, and business and trade associations to get the information you need. Sharpen your skills - attend seminars that cover important, up-to-date topics for all stages of business ownership. Savvy business experts share their knowledge and real-life experiences with you. The Department of Revenue will host a seminar and their representative will be available throughout the day to answer your specific questions. The fair is free, with plenty of free parking and no advance registration. Spend the day or just a few hours – it’s well worth your time!
Visit www.bizfair.org for more information.
This information provided by the Washington State Department of Revenue.
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EFTPS
A Secure Way to Pay All Your Federal Taxes
EFTPS, the Electronic Federal Tax Payment System, is a tax payment system provided free by the U.S. Department of Treasury. Pay federal taxes electronically via the Internet or phone 24/7. Businesses and Individuals can pay all their federal taxes using EFTPS. Individuals can pay their quarterly estimated taxes electronically using EFTPS, and they can make payments weekly, monthly, or quarterly. Both business and individual payments can be scheduled in advance.
EFTPS is ...
Secure
Fast
Accurate
Convenient
Easy to Use
Helps Reduce Penalties
You can initiate your tax payment 24 hours a day, seven days a week. As an added convenience, EFTPS allows taxpayers to schedule tax payments in advance. Businesses can schedule payments up to 120 days in advance of their tax due date. Individuals can schedule payments up to 365 days in advance of their tax due date. EFTPS will automatically make your payments for you on the due date you indicate. Scheduled payments can be changed or cancelled up to 2 business days in advance of the scheduled payment date. You can use EFTPS to make all your federal tax payments, including income, employment, estimated and excise taxes.
The enrollment application is available in our office, stop by and pick one up today!
GREAT NEWS FOR EXEMPT GROUPS
More small nonprofit groups will be able to e-file Form 990-N next year.
Those grossing $50,000 or less will be able to satisfy their filing obligation for the 2010 year by filing out a simple electronic postcard listing basic information about themselves, including their name address, tax ID number and top officers. The current threshold is $25,000. Organizations that fail to file annual returns for three consecutive years will automatically lose their tax-exempt status.
For more information please call our office today.
Small Employer Tax Credits for Health Care Expenses
· Do you have fewer than 25 Full Time Employees?
· Do your employees earn less than $50,000 in average salaries?
· Do you pay at least 50% of monthly health care premiums for your employees or are willing to do so?
If you answered yes to each of the above, you may be eligible for a refundable tax credit from the IRS.
Certain small employers who currently provide or begin providing health care coverage to their employees may be eligible for a federal tax credit authorized under the new Patient Protection and Affordable Care Act. The credit is offered in two phases and applies differently based on tax-exempt status. The value of the credit is based on the size of the employer and average annual wages paid. Thus not all employers with 25 or fewer employees will be eligible for the credit and the credit amount will vary by employer.
For the complete article please click on the link below:
Two New Tax Benefits Aid Employers Who Hire and Retain Unemployed Workers
Employers who hire unemployed workers this year (after Feb. 3, 2010 and before Jan. 1, 2011) may qualify for a 6.2-percent payroll tax incentive, in effect exempting them from their share of Social Security taxes on wages paid to these workers after March 18, 2010.
In addition, for each worker retained for at least a year, businesses may claim an additional general business tax credit, up to $1,000 per worker, when they file their 2011 income tax returns.
The new law requires that the employer get a statement from each eligible new hire certifying that he or she was unemployed during the 60 days before beginning work or, alternatively, worked less than a total of 40 hours for someone else during the 60-day period. The IRS is currently developing a form employees can use to make the required statement.
Businesses, agricultural employers, tax-exempt organizations and public colleges and universities all qualify to claim the payroll tax benefit for eligible newly-hired employees.
For the entire article please click on the link below:
Individual Income Tax Return Extensions
The final deadline for filing the 2009 individual income tax return if you have been extended is October 15th, 2010. If you need to speak to a CPA directly please call our office for an appointment. Jim will be out of the office September 1, 2010 through October 15, 2010. The office will remain open as usual Monday through Friday, 8 am to 5 pm.
Individual Retirement Arrangement
Traditional IRA: To contribute to a traditional IRA, you must be under age 70 ½ at the end of the tax year and have taxable compensation greater than or equal to your contribution during the year. Contributions may be tax deductible in full or in part, depending on your circumstances.
Roth IRA: Regardless of your age, you may be able to set up a Roth IRA. You can’t deduct your contributions, but if certain requirements are met, earnings will be tax-free.
SEP Plan: The Simplified Employee Pension (SEP) was specifically designed for small employers and has very few administrative burdens or costs. Employer contributions are made directly to IRAs that the employer sets up for the employees.
Simple Plan: A SIMPLE Plan is an arrangement under which an employer makes contributions to employees’ SIMPLE retirement accounts. Additionally, employees can make salary reduction contributions.
401(k) Plan: 401(k) plans are the most popular type of retirement plan used today. They can be a powerful tool in promoting financial security in retirement for employees and are a valuable option for businesses considering a retirement plan. Employees may defer a portion of their salary as either a pre-tax or after-tax contribution. As with IRAs, there are different kinds of 401(k) plans. Depending on the type, the employer can make their non-elective or matching employer contributions.
This information is provided by the Internal Revenue Service
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| | Developing a Business Plan
The term "business plan" often creates a mental picture of a voluminous formal report designed for a multi-billion-dollar conglomerate - i.e., something only a really large company needs. However, that notion is far from the truth. | | | Making Sense Out of Qualified Tuition Program
Qualified tuition programs (sometimes called Section 529 plans) have received a lot of attention recently because the 2001 Tax Act generally makes distributions from such plans tax free starting in 2002. | | | Providing Tax-free Fringe Benefits to Employees
An important part of any compensation package is fringe benefits, especially tax-free ones. | | |
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