Archive for February, 2011

Tax Breaks for this Filing Season

Wednesday, February 9th, 2011
Carolyn Valenti, Partner
 
Despite calls for simplifying the tax laws, they have actually been made much more complicated in the last few years. Year after year, there have been numerous tax changes that even some professionals have a tough time keeping up with. This filing season is no different. The 2010 Form 1040 reflects a number of new tax breaks. Some are straightforward. Others are complex. Some present choices. But they all provide an opportunity to save money.

(more…)

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QuickBooks: Turn Over a New Cliche – Adopt Best Practices

Tuesday, February 8th, 2011
Chris Blach, QuickBooks ProAdvisor

Turn over a new leaf. Make a New Year’s Resolution. Make a fresh start. Get your ducks in a row. All familiar cliches, but their message is valid: At this time of year, you probably feel like renewing your commitment to running a more successful, productive business.

There are numerous ways to do this, but you might consider adopting the concept of best practices (if you haven’t already). Most industries have them, primarily larger businesses. Best practices are a set of operational guidelines that are expected to produce a favorable outcome. Run your business using these techniques or methods, and you’re likely to be more successful. (more…)

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Is Your Sales Force Meeting Your Needs?

Friday, February 4th, 2011
With today’s downsized staff, you need to get the most out of your sales staff.

If goals are being met and revenue is where you want it to be, you may not need to use any measuring devices. But if there is a problem, the following ratios, if applicable to your particular business, may help you pinpoint the problem, analyze it, and take action.

The ratios can be applied to your entire business, to a division or department, or to one employee. Progress can be measured by comparing numbers from one month to the next.

Ratio 1: Total sales compensation/gross sales = direct selling costs (%).

Ratio 2: Gross sales/total hours worked by salespeople = sales dollars per hour.

Ratio 3: Number of sales/number of full-time-equivalent salespeople = number of sales per salesperson.

Ratio 4: Gross sales/number of full-time-equivalent salespeople = sales dollars per salesperson.

Ratio 5: Gross sales/number of sales transactions = average sales dollars per transaction.

Tip: The numbers you get from these ratios might also be used to develop sales quotas or targets.

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Tax Deadline – April 18, 2011

Tuesday, February 1st, 2011
In the 2011 tax filing season, taxpayers have until Monday, April 18 to file their 2010 tax returns and pay any tax due. Emancipation Day, a holiday observed in the District of Columbia, falls this year on Friday, April 15. By law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have three extra days to file this year. Taxpayers requesting an extension will have until October 17 to file their 2010 tax returns.

Who Must Wait to File

For most taxpayers, the 2011 tax filing season starts on schedule. However, tax law changes enacted by Congress and signed by President Obama in December mean some people need to wait until mid to late February to file their tax returns in order to give the IRS time to reprogram its processing systems. The IRS recently announced February 14, 2011 as the start date for processing these delayed tax returns.

Some taxpayers, including those who itemize deductions on Form 1040 Schedule A, will need to wait until February 14, 2011 to file. (more…)

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Financial Tips for February 2011

Tuesday, February 1st, 2011
Review Your Savings Plan

Establish or review your savings plan to begin accumulating assets for your life goals. Professional guidance will be helpful in reviewing investment alternatives.

Review Your Retirement Plan

Establish or review your retirement plan. Explore the availability of deferred compensation programs through your employer, such as 401(k) and 403(b) plans. Begin contributing as soon as you are eligible.

Review January’s Budget vs. Actuals

Compare January income and expenditures with your budget. Make adjustments as appropriate to your February expenditures. Make sure you have invested your planned savings amount for January.

Collect Your Tax Information

Verify that you have received all necessary Forms W-2 and 1099 and a statement showing the year-end balance of IRA and Keogh plans. Contact the appropriate company for any that have not been received. For those that have been received, make certain that the amounts agree with your records.

Although taxes for personal returns are not due until April 18, it is best to get an early start since additional follow-up may be necessary.

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Federal Tax Due Dates for February 2011

Tuesday, February 1st, 2011
February 10

 Employers - Federal unemployment tax. File Form 940 for 2010. This due date applies only if you deposited the tax for the year in full and on time.

Employers - Social Security, Medicare, and withheld income tax. File Form 941 for the fourth quarter of 2010. This due date applies only if you deposited the tax for the quarter in full and on time.

Small Employers - File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2010. This due date applies only if you deposited the tax for the year in full and on time.

Farm Employers - File Form 943 to report Social Security and Medicare taxes and withheld income tax for 2010. This due date applies only if you deposited the tax for the year in full and on time.

Certain Small Employers - File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2010. This tax due date applies only if you deposited the tax for the year in full and on time.

Employers - Nonpayroll taxes. File Form 945 to report income tax withheld for 2010 on all nonpayroll items. This due date applies only if you deposited the tax for the year in full and on time.

Employees - who work for tips. If you received $20 or more in tips during January, report them to your employer. You can use Form 4070.
February 15

 Employers - Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in January.

Employers - Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in January.

Individuals - If you claimed exemption from income tax withholding last year on the Form W-4 you gave your employer, you must file a new Form W-4 by this date to continue your exemption for another year.

Employers - Begin withholding income tax from the pay of any employee who claimed exemption from withholding in 2010, but did not give you a new Form W-4 to continue the exemption this year.
February 28

 Businesses - File information returns (Form 1099) for certain payments you made during 2010. There are different forms for different types of payments. Use a separate Form 1096 to summarize and transmit the forms for each type of payment. See the 2010 Instructions for Forms 1099, 1098, 5498, and W-2G for information on what payments are covered, how much the payment must be before a return is required, what form to use, and extensions of time to file.

If you file Forms 1098, 1099, or W-2G electronically (not by magnetic media), your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms is still January 31.

Payers of Gambling Winnings - File Form 1096, Annual Summary and transmittal of U.S. Information Returns, along with Copy A of all the Forms W-2G you issued for 2010. If you file Forms W-2G electronically (not by magnetic tape), your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms remains January 31.

Employers - File Form W-3, Transmittal of Wage and Tax Statements, along with Copy A of all the Forms W-2 you issued for 2010.

If you file Forms W-2 electronically (not by magnetic media), your due date for filing them with the SSA will be extended to March 31. The due date for giving the recipient these forms is still January 31.

Employers - with employees who work for tips. File Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips. Use Form 8027-T, Transmittal of Employer’s Annual Information Return of Tip Income and Allocated Tips, to summarize and transmit Forms 8027 if you have more than one establishment. If you file Forms 8027 electronically (not by magnetic tape), your due date for filing them with the IRS will be extended to March 31.

Farmers and Fishermen - File your 2010 income tax return (Form 1040) and pay any tax due. However, you have until April 18 to file if you paid your 2010 estimated tax by January 17, 2011.

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