It is hard to believe it is already August, and we are quickly approaching the end of the Bush-era tax cuts that are set to expire at the end of 2012.
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Posts By: Zinner & Co.
RS Seeks Input on Expanded Information Reporting
The Internal Revenue Service is inviting public comment on how to most effectively carry out a law change that, starting in 2012, will require businesses to report a wider range of payments to contractors, vendors and others, usually on Form 1099. These comments will help the IRS issue guidance that implements this provision in a manner that minimizes burden and avoids duplicate reporting.
read more…One-Time Filing Relief for Small Organizations that Failed to File for Three Consecutive Years
The IRS has announced that small non-profit organizations at risk of losing their tax-exempt status because they failed to file required returns for 2007, 2008, and 2009 can preserve their exempt status by filing returns by October 15.
read more…Employee vs. Independent Contractor – Seven Tips for Business Owners
As a small business owner you may hire people as independent contractors or as employees. There are rules that will help you determine how to classify the people you hire. This will affect how much you pay in taxes, whether you need to withhold from your workers paychecks and what tax documents you need to file.
read more…How Will the New IRS Audit Program Affect Your Small Business?
Small business owners have more reason than usual to be nervous about opening their mail for the next few years thanks to the IRS’s Employment Tax National Research Project (NRP).
read more…Does ‘Play or Pay’ Apply to Your Business?
Large employers should be aware of changes regarding employee healthcare coverage under the Patient Protection and Affordable Care Act.
read more…Ohio Employers Hit with Jobless-Insurance Tax Increase
Ohio employers face another tax hike in 2014 to help pay off the state’s unemployment-compensation loan from the federal government.
The federal employment tax paid by employers was bumped up for the third time beginning Jan. 1, under an automatic repayment system for states that have failed to repay their debts. This increase, plus two previous ones, will cost employers an additional $63 per employee this year, according to Ohio’s Department of Job and Family Services.
Employers pay state and federal payroll taxes to fund jobless benefits. But without sufficient reserves when the recession hit, Ohio and 35 other states were forced to borrow from the federal trust fund to continue paying benefits to unemployed workers.
Ohio began borrowing in January 2009, with the state’s debt peaking at $2.6 billion.
The debt is down to $1.55 billion after several state payments on the principal totaling $1.3 billion and reductions in federal employer tax credits in each of the past two years that generated $276 million applied to the balance.
According to the U.S. Department of Labor, Ohio is among 15 states and the Virgin Islands owing a combined $20.5 billion. Ohio’s $1.55 billion debt is bigger than that of all but three of the others: California ($9.7 billion); New York ($3 billion); and North Carolina ($1.8 billion).
Under the repayment system, the tax credit on federal unemployment taxes paid by employers is reduced 0.3% each year, effectively increasing the amount they must pay. Ohio’s credit has now been cut three times, for a total reduction of 0.9%.
Concerned about the impact on businesses, some House Republicans want to use the state’s estimated $404 million savings from the federally funded expansion of Ohio’s Medicaid program to pay down the debt.
Rep. Dave Hall, R-Millersburg, recently introduced a bill that would require the savings be applied to the principal of Ohio’s loan, which would reduce the debt by nearly a third. The legislation, House Bill 329, has 14 co-sponsors.
Other legislators have suggested using the Medicaid savings to reduce state taxes, while some have proposed using it to restore state aid to local governments that was reduced during the recession.
Alternatively, Democrats last year proposed tapping the state’s rainy-day fund to pay down the unemployment-compensation loan.
The federal employment tax paid by employers was bumped up for the third time beginning Jan. 1, under an automatic repayment system for states that have failed to repay their debts. This increase, plus two previous ones, will cost employers an additional $63 per employee this year, according to Ohio’s Department of Job and Family Services.
Employers pay state and federal payroll taxes to fund jobless benefits. But without sufficient reserves when the recession hit, Ohio and 35 other states were forced to borrow from the federal trust fund to continue paying benefits to unemployed workers.
Ohio began borrowing in January 2009, with the state’s debt peaking at $2.6 billion.
The debt is down to $1.55 billion after several state payments on the principal totaling $1.3 billion and reductions in federal employer tax credits in each of the past two years that generated $276 million applied to the balance.
According to the U.S. Department of Labor, Ohio is among 15 states and the Virgin Islands owing a combined $20.5 billion. Ohio’s $1.55 billion debt is bigger than that of all but three of the others: California ($9.7 billion); New York ($3 billion); and North Carolina ($1.8 billion).
Under the repayment system, the tax credit on federal unemployment taxes paid by employers is reduced 0.3% each year, effectively increasing the amount they must pay. Ohio’s credit has now been cut three times, for a total reduction of 0.9%.
Concerned about the impact on businesses, some House Republicans want to use the state’s estimated $404 million savings from the federally funded expansion of Ohio’s Medicaid program to pay down the debt.
Rep. Dave Hall, R-Millersburg, recently introduced a bill that would require the savings be applied to the principal of Ohio’s loan, which would reduce the debt by nearly a third. The legislation, House Bill 329, has 14 co-sponsors.
Other legislators have suggested using the Medicaid savings to reduce state taxes, while some have proposed using it to restore state aid to local governments that was reduced during the recession.
Alternatively, Democrats last year proposed tapping the state’s rainy-day fund to pay down the unemployment-compensation loan.
Health Insurance Changes Coming October 1
Business owners need to consider their options as federal health care reform affecting health insurance exchanges begins October 1.
read more…Important Update for CAT Taxpayers
The commercial activity tax (CAT) is an annual tax imposed on retailers, service providers, manufacturers, and other types of businesses for the privilege of doing business in Ohio.
read more…IRS Announces 2011 Standard Mileage Rates
The Internal Revenue Service today issued the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
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Since 1938, Zinner has counseled individuals and businesses from start-up to succession. At Zinner, we strive to ensure we understand your business and recognize threats that could impact your financial situation.
Highlights of the long-awaited second COVID Relief Bill
On Dec. 21, Congress passed the long awaited $900 billion COVID stimulus deal. The legislation called, the Consolidated Appropriations Act, 2021, is expected to be quickly signed by President Trump. It is intended to help families and small businesses that are...
Lorenzo’s Dog Training Team Helps Bring Pets and Owners Closer Together
From an early age, Lorenzo Miller realized he loved dogs. Growing up in the inner city, the 6-year-old saw the stray dogs in his neighborhood knocking over garbage cans looking for food and wanted to help them. Soon, he began to bring the dogs into his home, but was...
New 1099-NEC Form For Nonemployee Compensation
The PATH Act accelerated the due date for filing Form 1099 that includes nonemployee compensation (NEC) from February 28 to January 31 and eliminated the automatic 30-day extension for forms that include NEC. Starting with tax year 2020, taxpayers should use Form...
Zinner & Co. Sponsors the Magic of Lights for 2020
Zinner & Co. is pleased to continue its support and sponsorship of the Magic of LightsTM, being held at the Cuyahoga County Fairgrounds in Berea, Ohio from November 25, 2020 through January 2, 2021 between the hours of 5:30 and 10 p.m. Magic of LightsTM is a...
University Settlement Announces Community-Changing Project
For the past 94 years, University Settlement, a 501(c)(3) nonprofit, has provided much needed social services to the residents of the Broadway-Slavic Village neighborhood. They have been the main social services provider to the community and have followed their...
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