Posts Tagged ‘taxes’
by Barbara Weltman on August 4th, 2009
As the economy improves, you may be reluctant to hire new employees but still need extra help to meet increased demand. Some alternatives: independent contractors, temporary workers, or even summer interns. Be sure you understand the tax and legal issues before engaging this type of help.
Independent contractors
IRS worker classification. One of the hottest audit targets is worker classification. You may treat a worker as an independent contractor (IC) because you believe this is the correct treatment, but the IRS may think otherwise and reclassify your worker is an employee. Result if the IRS is correct: You could owe... Read more »
by Christina Lee on April 10th, 2009
If filing your small business taxes by April 15 does not seem feasible this year, do not fight against the IRS. Instead, work with the agency to eliminate any reason for last-minute stress.
Over the past two years, about 7 percent of all Form 1040 filers have requested time extensions, accounting for nearly 10 million returns. If you do the same, make sure to:
Understand the terms and conditions of the extension. While a typical extension lasts for six months, small business owners must still pay any amount due by April 15. They will otherwise owe a late-payment penalty and... Read more »
by Christina Lee on March 4th, 2009
The definition of what small businesses can claim on their taxes has always been pretty broad. In fact, it can easily sum up to just about any “ordinary, necessary, and reasonable expense,” as legal reference Nolo states.
But Section 179 of the Economic Stimulus Act of 2008 may allow for small business owners to get even more of their 2008 tax returns this year, especially if the following deductions are claimed:
Computer software. Though small business owners once had to depreciate the costs of new software over three years, they can now fully expense new purchases during the same year,... Read more »
by Rebecca Button on May 14th, 2008
To follow up with my previous post Internet Sales Tax Looms for NY…Will It Catch On? I posed a question along the lines of "do you think it should happen/is it a good idea?"
As of June 1, 2008, the legislation will go into effect, requiring internet retailers to collect a sales tax on any orders being shipped to the state’s residents. This legislation was largely enacted to keep online retail Goliaths (namely Amazon.com) in check and attempt to "level the playing field" for brick and mortar stores in the state.
Amazon has now responded by suing the New York... Read more »
by Rebecca Button on April 10th, 2008
How would you feel about hiring an accountant who puts the interests of the IRS before those of you or your business? What’s that you say? You wouldn’t like it? That’s what I thought you’d say…but what if I told you you had to?
Unfortunately, that may be the case.
(I mean, I won’t force you to but a much stronger influence might…what was their name again?…..oh right! The Government.)
The Small Business and Work Opportunity Tax Act of 2007 stipulates that those who prepare returns containing an understatement of tax due – which the preparer "knew or reasonably should... Read more »
by Larry Slusser on April 9th, 2008
There are many benefits of being self employed. Independence, flexibility in work schedule, getting to do what you love, and enjoying some nice deductions from the IRS that lower the amount of tax you pay. Lowering your tax means increasing your income and your net cash flow so make sure you take advantage of every legal deduction you can take.
It is important to know that while seeking the help of professionals is advisable, you always want to make sure to do your own research and check for deductions on your own. Make sure that if there is any ambiguity... Read more »
by Carrie Hinkel on April 4th, 2008
Are you a tax procrastinator when it comes to your business taxes? If you’ve yet to file your taxes with the IRS this year, then the answer is a resounding “YES”. Yipes! With less than two weeks until April 15th, you have a lot of work to do. Here’s what you can do to get your paperwork organized and your taxes filed on time and without penalties:
Get started – You’re already in a serious time crunch, so time is truly of the essence. Start gathering all your income and expense paperwork as well as any business receipts. Luckily, you... Read more »
by Rebecca Button on March 24th, 2008
It ranks right up there with getting your wisdom teeth pulled or surviving the first anniversary of your 29th birthday (for those who haven’t had their coffee yet, that would be your 30th birthday-the horror!). And yet, much like getting your wisdom teeth out (probably inevitable) and turning 30 (definitely inevitable), if you run a business, odds are you’ll eventually have to deal with the unpleasantness known as a lawsuit.
Your best defense is a good offense and you can create a good offense by taking some preventative steps to reduce the risk of being threatened with a lawsuit according... Read more »
by Rebecca Button on February 26th, 2008
Whether you’re starting a business or just needing a quick reference, online business calculators are the entrepreneur’s best friend! There are many available online and below you’ll find some helpful calculators for the current tax season.
Accounting and Taxes
When it comes to the health of any company, the day-to-day monies coming in and going out are important to keep tabs on. There also needs to be a good amount of planning to make sure you know what you should be putting aside for Uncle Sam, so you are not unpleasantly surprised at the end of the year.
Working Capital... Read more »
by Danny Brown on February 20th, 2008
There are many sides to running a successful small business, including marketing, sales, strong management and more. However, in the rush to set up your business, you may have overlooked one key area, and one that could be the difference between your company being legal, and committing fraud – registering your business. And with the consequences being a heavy fine, or even imprisonment and disbanding of your company, it’s important that you haven’t overlooked this small yet crucial factor.
Do You Need to Register?
Depending on the size of your business, you may be able to trade without registering your... Read more »