Require a W-9!~
Require a W-9!!
If you operate a business, under new IRS rules beginning in 2012 you will be required to disclose on your tax return whether you filed all required 1099’s. Many of you have done an excellent job of filing these each year as necessary. But the IRS is on the lookout for businesses out of compliance with this rule. BEFORE you make any payments to a contractor, landlord, etc. get a W-9 from your payee. This form will tell you if they will need to be issued a 1099 at the end of the year and will ensure that you have the information you need to prepare it including their legal name and tax identification number. If you wait until next January when the forms are due it will be very difficult to track down this information, making you out of compliance, not the contractor.
Make this one of your resolutions for 2012!!
If you have any questions, please contact our office.
The new Early Bird Date for Kauai, Hawaii is now May 1, 2012.
Hey folks!
This just in… The new Early Bird Date for Kauai, Hawaii is now May 1, 2012. Make your room reservations for Hawaii (June 17-23, 2012) today by calling 1-800-266new or click on the link belowe. Please let us know if you have any questions or if you are joining us!
http://www.adcpa.org/getaways/
Kauai, Hawaii – June 17-23, 2012
Just a friendly reminder for the Kauai, Hawaii trip. June 17-23, 2012. Get your CE credit – continuing education in an exotic location and write it off on your taxes. With luxury resort destinations and flexible options for your CE credits, continuing education has never been so relaxing.
Reminder: 20% discount ends 2/16/12.
http://www.adcpa.org/getaways/Resort_Seminars_Flyer.pdf www.adcpa.org
4th quarter payment are due by 1/16/2012
Remember: If you make quarterly estimated tax payments, the 4th quarter payment is due by 1/16/2012. Please make the check payable to United States Treasury PO Box 1300 Charlotte, NC 28201-1300. Be sure to include your social security number and “4Q 2011 ES” in the memo of the check.
Temporary payroll tax cut extended into 2012
Temporary payroll tax cut extended into 2012
By Paula Aven Gladych
A payroll tax cut that has been in effect since 2011 will extend through the end of February. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages. According to the Internal Revenue Service, the reduction will have no effect on employees’ future Social Security benefits.
Employers are advised to implement the new payroll tax cut as soon as possible, but no later than Jan. 31. For any Social Security tax over-withheld during January, employers should make an offsetting adjustment in workers’ pay no later than March 31.
Under the terms negotiated by Congress, the law also includes a new “recapture” provision, which applies only to those employees who receive more than $18,350 in wages during the two-month period (the Social Security wage base for 2012 is $110,100, and $18,350 represents two months of the full-year amount). This provision imposes an additional income tax on these higher-income employees in an amount equal to 2 percent of the amount of wages they receive during the two-month period in excess of $18,350 (and not greater than $110,100).
This additional recapture tax is an add-on to income tax liability that the employee would otherwise pay for 2012 and is not subject to reduction by credits or deductions. The recapture tax would be payable in 2013 when the employee files his or her income tax return for the 2012 tax year. With the possibility of a full-year extension of the payroll tax cut being discussed for 2012, the IRS will closely monitor the situation in case future legislation changes the recapture provision