Change to Earned Income Tax Credit Program
September 3rd, 2010
Originally, the Earned Income Tax Credit was designed to assist single-earner families with their cash flow. The program reduced an employee’s federal income tax withholding. In effect, it gave the employee more cash without impacting a firm’s bottom line. The process wasn’t without paperwork.
Employers had to account for the tax credits, to keep supporting documentation, and to reconcile their filings. While public interest groups advertised the program, employers often did not know its benefits.
The IRS started automaing the annual process, with their….read more
Electronic payments common sense
June 29th, 2010
Do you have a payroll, investment, or insurance company pull tax payments, employee wages, investment funds, or insurance payments from your corporate bank account? Instead, set up an interest-bearing subsidiary account with your bank & transfer funds from your master account to the subsidiary before the payment due date.
Mistakes or fraud could wipe you out if your master account is drained. Fraud – technology is out there for thieves to wash the ink or toner off a check and to….read more
Why not pay employees on a 1099 basis?
March 30th, 2010
Why not pay employees on a 1099 basis? It saves you paying taxes, workers comp insurance, unemployment insurance, all you have to do is… Sounds familiar? Another All- You-Have-To-Do trip.
The IRS joined with the Department of Labor to audit firms with 1099 employees. They are looking for firms with 5 or more 1099 employees earning more than pocket money. When they find one, its compounded, interest, fines & penalties to the earliest day a similar person was hired. Then it’s….read more