Taxpayers who give to charities providing earthquake relief in Haiti can claim these donations on the tax return they are completing this season, according to the Internal Revenue Service.
read more…
Ways to Offset Education Costs
College can be very expensive. To help students and their parents, here are some ways to offset education costs:
read more…The Many Benefits of a SEP
One of the most common questions on business owners’ minds is what they can do to reduce their taxes. While there are many possible responses to this question, there is one that stands out. Just as employees may contribute some of their wages to a 401(k) to defer their taxes, small business owners have similar options. One such option is the Simplified Employee Pension, or more commonly referred to as a SEP.
read more…Ten Tips for End of Year Tax Planning
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.
read more…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.
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.
Ask the Expert: Should I Take the Educational Tax Breaks or My Child?
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Can You Mix Business and Pleasure When you Travel?
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The benefits of trusts in managing one’s financial affairs, both during one’s life and after one’s death, are well documented and quite significant. Among the trade-offs for their benefit is the complexity of their tax structure and the highly compressed tax...
What We’re Reading (Part 2)
Earlier in the year, we shared a list of business-related books we enjoyed reading and in which we found great value. It was very well received, so we thought we’d share more of our favorites. The following is a partial list of some of the books we’re reading in 2019:...
Ask the Expert: Should I Take the Educational Tax Breaks or My Child?
Who should take the educational tax breaks, me or my child? That’s a great question! The answer is: It depends. The first question should be: Is the student a dependent? If you claim the student as a dependent, you should take the credits and deductions. That may...
Send us your questions and we’ll share our insights with you on our blog!