Business owners need to consider their options as federal health care reform affecting health insurance exchanges begins October 1.
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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.
read more…March Filing for Many 1040 Filers’ Tax Forms
With the open tax season nearly two weeks old, the Internal Revenue Service is beginning to expand the returns they are accepting, including those of taxpayers claiming education credits on Form 8863 starting this Thursday, Feb. 14.
read more…IRS Initiates 5500EZ Penalty Relief Program
The Internal Revenue Service has introduced a temporary one-year pilot program that will potentially enable certain small businesses with retirement plans to avoid penalties for not filing a Form 5500-EZ, and certain Forms 5500.
read more…Taxable versus Tax-exempt Investments
For some high-income taxpayers, their tax liability due to the IRS was unusually high this past tax season, and not for the most obvious reason–the 2013 increase in the top income tax rates.
read more…Employer Obligations for the Additional Medicare Tax
The IRS has issued final regulations relating to the Additional Medicare Tax on income above threshold amounts, as added by the Affordable Care Act.
Employers are responsible for withholding and reporting the 0.9% Additional Medicare Tax, which became effective in 2013. If an employer fails to withhold the correct amount from wages it pays to an employee, the employer may be liable for the amount not withheld and subject to applicable penalties.
In general, employees and their employers must each pay a Medicare tax, at a rate of 1.45%, on the entire amount of the employees’ wages. Effective for employees beginning in 2013, the 0.9% Additional Medicare Tax is imposed on individuals for wages in excess of $250,000 for married taxpayers filing jointly, $125,000 for married taxpayers filing separately and $200,000 for single taxpayers. Thus, for high-wage earners, the employer portion of the Medicare tax remains at 1.45%, but the employee portion can be a total of 2.35% of wages in excess of the threshold amounts.
To comply with the Additional Medicare Tax requirement, employers must withhold the 0.9% Additional Medicare Tax from wages it pays to an employee in excess of $200,000 in a calendar year, without regard to the employee’s filing status, wages paid by another employer or income from self-employment. Thus, generally the employer need not obtain additional information from the employee regarding the employee’s expected actual liability to withhold amounts due under the Additional Medicare Tax.
Employers are responsible for withholding and reporting the 0.9% Additional Medicare Tax, which became effective in 2013. If an employer fails to withhold the correct amount from wages it pays to an employee, the employer may be liable for the amount not withheld and subject to applicable penalties.
In general, employees and their employers must each pay a Medicare tax, at a rate of 1.45%, on the entire amount of the employees’ wages. Effective for employees beginning in 2013, the 0.9% Additional Medicare Tax is imposed on individuals for wages in excess of $250,000 for married taxpayers filing jointly, $125,000 for married taxpayers filing separately and $200,000 for single taxpayers. Thus, for high-wage earners, the employer portion of the Medicare tax remains at 1.45%, but the employee portion can be a total of 2.35% of wages in excess of the threshold amounts.
To comply with the Additional Medicare Tax requirement, employers must withhold the 0.9% Additional Medicare Tax from wages it pays to an employee in excess of $200,000 in a calendar year, without regard to the employee’s filing status, wages paid by another employer or income from self-employment. Thus, generally the employer need not obtain additional information from the employee regarding the employee’s expected actual liability to withhold amounts due under the Additional Medicare Tax.
When Does Once a Year Really Mean Once a Year?
One of the more confusing areas of tax law is the area of retirement planning and Individual Retirement Accounts (IRAs). In fact, there are so many nuances to IRAs, we’ve recently learned that the IRS can’t always get it right either!
read more…Employee Affordable Care Act Penalty
Under the Affordable Care Act (ACA), employers with 50 or more full time equivalent employees are required to offer affordable health coverage options to those full time employees and their dependents. Failure to comply will result in hefty penalties.
read more…The IRS to Prepare Tax Returns?
A recent article in The Plain Dealer addressed a contentious issue that has been circulating for years: with the steady rise of tax-evasion and identity theft, should the Internal Revenue Service be the one to prepare returns for taxpayers?
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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.
8 Keys for a Faster Year-End Close
Depending on whether your organization is on a calendar or fiscal year, you may have just gone through a year-end close, or you’re looking forward to one (using the phrase “looking forward to” very loosely.) Do you find the year-end closing process to be an arduous...
10 Keys for a Faster Year-End Close
Depending on whether your organization is on a calendar or fiscal year, you may have just gone through a year-end close, or you’re looking forward to one (using the phrase “looking forward to” very loosely.) Do you find the year-end closing process to be an arduous...
Zinner & Co. Supports The United Way of Greater Cleveland in 2019
Zinner & Co. is pleased and proud to support our long-time clients and friends at The United Way of Greater Cleveland for 2019. Zinner & Co. employees will be participating in a variety of fundraisers this year, including Dress Down Fridays, where they...
If You Owe, You Won’t be Allowed to Go
The IRS recently issued a warning to taxpayers who are seriously delinquent on their tax debt - you may be unable to attain a new passport or renew your existing one.This applies to taxpayers with a “seriously delinquent tax debt” defined as exceeding $51,000, and for...
Ask the Expert: Are 2018 Income Taxes Easier to Prepare Under the Tax Cuts and Jobs Act?
Are 2018 Income Taxes Easier to Prepare Under the Tax Cuts and Jobs Act? Like any good consultant, my answer is: It depends.In the lead-up to the 2016 presidential election, then-candidate Donald Trump promised to “simplify the tax code” so taxpayers could submit...
Send us your questions and we’ll share our insights with you on our blog!