The IRS recently announced the extension of the 2011 reduced payroll tax rate. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percent reduction of Social Security tax withholding on employees’ wages. The rate is temporarily reduced from 6.2 percent to 4.2 percent through Feb. 29, 2012. The IRS announcement states, [...]
The Internal Revenue Service announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2012. The rates are: three percent for overpayments (refunds and credits) two percent for overpayments (refunds and credits) in the case of a corporation three percent for underpayments (liabilities) five percent for large corporate underpayments one-half [...]
Economic pressures and new technology have changed what clients and customers expect. Compared to just a few years ago, clients and customers now want more service for the same cost. As a result, successful companies have become leaner and better able to produce more results with fewer resources. Not only have economic pressures and new [...]
The American Dream is founded on the belief that an individual can build a business with determination and hard work, starting with nothing except an idea or a skill. Being your own boss — an independent contractor — is at the heart of this dream. Successful independent contractors eventually grow their small business into a [...]
The IRS announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes. The rate will increase to 55.5 cents a mile for all business miles driven from July [...]
Washington DC-Recently IRS Commissioner Doug Shulman spoke at the National Press Club about his vision of the IRS in the future. I think his vision provides some interesting insights into how the IRS looks at compliance-not only income tax but also misclassifications and employment taxes. Shulman is expecting the IRS to receive more money to [...]
This question was asked at a recent Collabrus seminar in San Francisco by an HR person, not an expert on legal entities and IRS reporting requirements. “It depends on how the LLC is organized and reports to the IRS,” I responded. “I don’t understand-it’s an LLC. That’s how it’s organized,” she said. I continued, “Maybe [...]
WASHINGTON-The US Internal Revenue Service recently released statistics describing IRS activities from Oct. 1, 2009, to Sept. 30, 2010. The release includes information about returns filed, tax collections, enforcement and taxpayer assistance, as well as the IRS budget and workforce. Some IRS statistics for FY 2009-10: Collected $2.3 trillion in revenue Processed 230 million returns [...]
Whenever a consultant who doesn’t qualify for independent contractor status, is pushing back, arguing to be treated as an IC “or else,” I wonder if they have truly thought this through? First, let me begin by stating that this does not apply to the consultants who have clearly established their own business, serve multiple clients [...]
Each year, for the past several years, both houses of Congress have introduced bills to really toughen up on worker misclassification. Each year the bills have quietly died in committee because of higher priority issues, such as: elections, stimulus, health care reform, wars, deficits, etc. Here comes a new legislative season and another run on [...]
powered by WordPress
