One of the most common areas of contention between the IRS and businesses is the issue of worker classification. If a worker is an employee, the business is responsible for payroll taxes and fringe benefits. However, if the worker is an independent contractor, the business is generally not responsible for payroll taxes. The IRS estimates [...]
Setting up QuickBooks payroll items appropriately is essential to accurate tracking and reporting of your payroll transactions. When you choose to use the QuickBooks payroll function, one default account is setup to track all payroll liabilities and one default account is setup to track all payroll expenses. Since this can cause confusion to both you and your [...]
If debt collection is a problem for your business, deducting uncollectible (bad) debts from your tax bill may somewhat lessen the sting of simply writing them off. Here is some basic information on deducting business bad debts. First, the debt must be legitimate. A bona fide debt arises from a debtor-creditor relationship and is based [...]
Four years ago, the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) relaxed some restrictive rules preventing many taxpayers from converting a traditional IRA to a Roth IRA, but this favorable change was not effective until 2010. Well, 2010 is almost here and the old saying "good things come to whose who wait" is [...]
Your month end process should always include a bank reconciliation. QuickBooks has an easy to use reconciliation process. Simply enter your ending balance from your bank statement and begin marking all items on the screen that appear as cleared on your bank statement. Deposits and credits are listed on the right of the screen and [...]
As we approach year-end, there is still time to take action to lower your 2009 tax bill and add to your tax -advantaged retirement accounts. Here are a few ideas to get you started before year-end. This is by no means an exhaustive list, so please contact us for additional ideas. Make the Standard Deduction [...]