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 [...]
According to The Wall Street Journal, (“The Rise of the Temp Lawyer”, June 15, 2011), a new trend in labor law suits has sprung up from an unlikely source: “itinerant contract attorneys.” These are typically recent graduates, who move from job-to-job, getting paid by the hour, largely to review documents for law firms and corporate [...]
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 [...]
President Obama is expected to sign a bill repealing the law requiring all businesses to file 1099 forms with the IRS for payments to any business totaling $600 or more for goods or services, including payments to corporations. The provision had been part of healthcare reform law, known as the Patient Protection and Affordable Care [...]
Washington DC-Congress wants to repeal the new law requiring 1099′s for payments to corporations. This is the requirement the IRS had been asking congress for, and finally got in the 2000+ page Patient Protection and Affordable Care Act (the Health Care Law). The problem isn’t whether to repeal the requirement for 1099′s-the politicians mostly agree [...]
WASHINGTON DC-President Obama’s proposed budget for fiscal year 2012 includes a record $240 million for initiatives specifically related to enforcing IC Compliance and misclassification of workers. This proposed funding is consistent with his often stated goals of closing tax gap loopholes and tightening enforcement on the misclassification of independent contractors. Politicians, at all levels of [...]
AUGUSTA, Maine — Governor Paul LePage recently abolished the Maine task force focusing on employee misclassifications. In addition, Governor LePage is submitting legislation that would use the federal definition of an employee for all state purposes, eliminating the different standards now in use for different state programs. LePage stated during an interview. “The whole point [...]
powered by WordPress
