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Posted in General on Feb 20, 2012

The sixty-day payroll tax cut that Congress passed last year has been extended through the end of 2012.  Both the House and Senate have passed this and it will become law once the President signs it.  This means that the employee's Social Security tax will stay at 4.2% instead of 6.2%.  The employer's portion remains unchanged at 6.2%.

Last Updated by Mary Lou Ruderman on 2012-02-20 13:08:37

Posted in General on Jan 24, 2012

The deadline to prepare forms 1099 and W-2 is fast approaching!

Payments made to individuals and certain corporations, such as law firms, made in the course of business are usually reportable on form 1099-MISC.  This form must be delivered to the recipient by January 31^st, except in a few cases which has a deadline of February 15^th.

Employers who pay an employee for services, including noncash payments, must file a Form W-2 for each employee.  You must furnish Copies B, C, and 2 of Form W-2 to your employees by January 31, 2012.  You will meet the 'furnish' requirement if the form is properly addressed and mailed on or before the due date.

If you need help preparing these or other tax forms, please call us at 954-773-8291.

Last Updated by Mary Lou Ruderman on 2012-01-24 12:14:21

Posted in General on Dec 29, 2011

A client called the other day and mentioned that he was going to send in his contribution for his Roth IRA.  I asked him if he had thought of opening a SEP-IRA account.  Did you know that as a self-employed individual your business can make a contribution to your SEP-IRA retirement account and that you can make a contribution to your IRA retirement account, subject to certain limitations?  If you are interested in learning more about ways to save for retirement, please give us a call at 954-773-8291.

Last Updated by Mary Lou Ruderman on 2011-12-29 13:12:03

Posted in General on Dec 20, 2011

Last month a client received a letter from the Florida Department of Revenue.  They requested information about online purchases the business had made from companies in other states.  Even though these out of state businesses usually do not charge sales tax on purchases, a taxpayer that uses these items in Florida must pay use tax. 

Use tax applies to items purchased online or outside Florida, including another country, that are brought or delivered into the state and would have been taxed had they been purchased in Florida. Examples of such purchases include those made through the Internet or mail-order catalogs, purchases made in another country, furniture purchased from dealers located in another state, and computer equipment ordered from out-of-state vendors that advertise in magazines. If an out-of-state seller fails to collect sales tax, it is the responsibility of the purchaser to comply with Florida law and submit payment directly to the department. Taxpayers can file and pay use tax online or complete an Out-of-State Purchase Return (Form DR-15MO). A return does not need to be filed if the tax owed is less than $1. Taxpayers may file and pay online or by mail. No tax is due if a purchaser paid 6% or more sales tax to the seller at the time of purchase. However, if the seller charged less than 6% tax, the purchaser must pay use tax in an amount equal to the difference between what was paid in tax and the 6% tax imposed by Florida. There is no credit provided for sales tax paid in another country. 

Do you have questions on this?  Contact Ruderman and Company if you need any assistance.

Last Updated by Mary Lou Ruderman on 2011-12-20 12:11:11

Posted in General on Dec 12, 2011

The IRS announced the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, and medical purposes:

• 55.5 cents per mile for business miles driven
• 23 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The business rate is unchanged from the rate set in July 2011, however, the rate for medical or moving purposes decreased 0.5 cents per mile.  The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

For additional information, please contact us at 954-773-8291.

Last Updated by Mary Lou Ruderman, CPA on 2011-12-12 09:21:44

Posted in General on Dec 06, 2011

As we close 2011 and get ready for 2012, many small businesses are looking to clean up their files and get rid of old documents.  As they do, they often ask us, How long should I keep my records?  The answer:  it is complicated.

The general rule is three years  but the IRS states that, the length of time you should keep a document depends on the action, expense, or event the document records. Generally, you must keep your records that support an item of income or deductions on a tax return until the period of limitations for that return runs out.

What does that mean?  If you purchase a piece of equipment and depreciate it for fifteen years, you must keep the original bill of sale until the period of limitations expires for the year in which you either dispose of the property or fully depreciate it. 

It is recommended that employment tax records are kept for four years after the due date for the tax.

However, you may need to keep files for longer than the IRS suggests.  For example, your insurance company may want you to keep files longer than the IRS does.

For more specific information, take a look at IRS Publication 583, Starting a Business and Keeping Records or contact us at 954-773-8291.

Last Updated by Mary Lou Ruderman, CPA on 2011-12-06 11:10:37

Posted in General on Nov 28, 2011

S Corp owners make sure you have taken a "reasonable salary" during the year. The IRS is looking at S Corp owners that take distributions rather than salary.  It's okay to take distributions, but make sure you are also taking a reasonable salary.  If you haven't taken a salary this year, you still have time to do so.  Contact Gary or Mary Lou for assistance.

Last Updated by Gary S. Ruderman, CPA on 2011-11-28 11:09:32

Posted in General on Nov 21, 2011

Attention business owners: starting with the 2012 tax year, Merchant Card providers must report payments to you on Form 1099-K (optional for 2011). Taxpayers, in turn, must split out credit card receipts vs cash/check/etc. If your accounting system is not set up for this, Ruderman and Company can help.

Last Updated by Gary S. Ruderman, CPA on 2011-11-21 06:11:42

Posted in General on Mar 31, 2011

Twenty years ago, it used to be that small business owners would send their check register and deposit slips to their CPA each month.  The CPA would compile monthly financials thereby providing the business owner with CPA-issued financials.  This was an important tool for the business owner to use to manage the business.  Nowadays, most small business owners use QuickBooks, which is great however, things are not always entered correctly.  This means the business owner is using incorrect financials to make business decisions.

Ruderman and Company's solution?

Provide your CPA with the accountant's copy of your QuickBooks file on a monthly or at least quarterly basis.  You can then have confidence in your financial statements and know you are making business decisions based on accurate information.

If you would like to discuss this further, contact us at 954-773-TAX1.

Last Updated by Admin on 2011-03-31 10:42:44

Posted in General on Mar 03, 2011

H.R. 4, a bill introduced by Rep. Dan Lungren, R-Calif., would repeal the provision in the health care reform bill requiring businesses to report any purchases of goods or services of over $600 in a calendar year from another business. It would also repeal the requirements in the Small Business Jobs Act that apply the same requirements to rental property businesses.

Of course this repeal doesn't come without a price ? high wage earners whom have received tax credits under the law now will have to repay the money.  While no one wants to see yet another tax on US Taxpayers, the 1099 requirements affect so many negatively.  In a time when small business owners need to be supported so our economy can thrive, repealing the 1099 requirements is more important than ever.

Last Updated by Admin on 2011-03-03 04:53:28

Posted in General on Feb 17, 2011

Last week the Senate Finance Committee did not hold a vote on repealing expanded Form 1099 reporting requirements for landlords.

That means, if you own property and rent it, your paperwork requirements got much worse on January 1st.  The landlord provision of the 2010 Small Business Jobs Act requires you to report all payments made in 2011 for services that total $600 or more.  This includes payments to the plumber, electrician, and the accountant too.

If you think you will be paying someone more than $600 this year, ask them to complete a W-9 form.

You can find the form here:  http://www.irs.gov/pub/irs-pdf/fw9.pdf

The important fields on the form that you will need are the payee's name, address, and Social Security number or Employer Identification Number.

If you compile these throughout the year, it will make January 2012 much easier.

Last Updated by Admin on 2011-02-17 13:45:32

Posted in General on Feb 11, 2011

Facebook sent out an email to page admins yesterday to tell us that we could upgrade our business page to the new Facebook format early and not wait until March when all pages will be automatically updated.  What is the new format like and is it better?  Of course it's all in the eye of the reader, but here's why I like the change:

1.  Business pages now look like the new format for individual pages.  This makes it familiar as the layout is similar to the user's page and their friends' pages.

2.  If you have multiple admins, they are now all listed with their picture in the upper right hand corner.  This may not be important to a company with one or two admins, but if you have a number of them, this is a good reminder as to who is posting on behalf of your company.

3.  My favorite change is the ability to comment on other pages as your business, rather than as your individual profile.  You may want to comment on a client's page or a favorite supplier but you want them to know this is the opinion of your business.  Now you do can this.  This is a great way to get your name out on other pages and hopefully drive traffic back to yours.

Overall, I think the changes are for the better.  Of course with Facebook, the only thing that is certain is once you understand the page format, it will change again!

Last Updated by Admin on 2011-02-11 11:12:05

Posted in General on Feb 10, 2011

"Defeat teaches better than victory" Japanese saying

After the stock market crash of 2008, many investors learned the hard way about their investments.  Whether it was their retirement savings, a 401(k), or their child's college fund, people who never looked at their account statements while the market was good, started to obsess over them once the market went bad.

But that is a good thing.

There is nothing better than an informed investor.  Take responsibility for your financial future.  First, take the time to list out your assets (bank accounts, retirement accounts, etc.).  Look at your year-end statements and see the investment performance of your accounts.  Don't like what you see?  Make an appointment with your broker, banker, or CPA and ask for their help.  While you need to take responsibility for your finances, you don't need to do it alone.  Just as a CEO does not run all areas of the company, you should build a team of trusted advisors to help you learn more and make good decisions.

While many were hurt by past investment performance, you can learn from it and have a victorious financial future.

Last Updated by Admin on 2011-02-10 13:31:12