Bookkeeping News & Tips

All Employers Must Use New Form I-9

The U.S. Citizenship and Immigration Services (USCIS) will no longer accept previous versions of Form I-9, Employment Eligibility Verification. Effective May 7, 2013, employers must use the revised Form I-9 (Revision 3/8/2013) for all new hires and re-verifications. All employers are required to complete and retain a Form I-9 to document verification of the identity and employment authorization of each new employee (both citizen and noncitizen) hired after November 6, 1986, to work in the United States. [More]

Small Business Taxes: The Virtual Workshop

Have you just started your small business and are unsure of how to meet your small business tax obligation? Are you a seasoned business owner who is just a little unclear on what you small business tax obligation is? If so, the IRS has a workshop just for you.The IRS offers Small Business Taxes: The Virtual Workshop which is a series of videos that walk you through what your tax liability may be and how you can take care of it properly. Also the videos touch on topics such as setting up employee retirement plans, payroll taxes, tax deposits, and hiring people who are not U.S. citizens. [More]

The Paying Yourself Series: Shareholder Loan Or Officer's Compensation?

The procedures for compensating yourself for your efforts in carrying on a trade or business will depend on the type of business structure you elect. In the Paying Yourself Series we will cover topics that frequently arise when new business owners ask questions about paying themselves. The series will cover corporate officers, partners, dividend distributions, treating employees as nonemployees, reasonable compensation, draw account and this week’s topic shareholder loan or officer’s compensation. [More]

The Employer Provided Child Care Tax Credit

The Economic Growth and Tax Relief Reconciliation Act of 2001 created a new tax credit to encourage businesses to assist their employees with child care by providing child care on-site or assisting their employees in finding child care. The Employer-Provided Child Care Credit was extended in the American Taxpayer Relief Act on January 1, 2013. The Employer-Provided Child Care Credit is 25 percent of child care facility related expenditures plus 10 percent of child care resource and referral expenditures paid or incurred during the tax year -- limited to $150,000 per tax year. The credit is part of the general business credit and can be claimed any time within 3 years from the due date of the return. (IRS Form 8882) [More]

Did You Know the Small Business Health Care Tax Credit is Increasing?

For the past 3 years —2010 to 2013— the maximum credit for small business employers has been 35% and 25% for small tax-exempt employers such as charities. However, in Jan 2014 an enhanced version of the credit will take effect. Small business employer’s maximum credit will be 50% and small tax-exempt employer’s maximum credit will be 35%. [More]