The completed-contract method of accounting is used by contractors and manufacturers. Unlike the percentage-of-completion method which recognizes revenues and gross profit in the applicable periods of the construction or manufacturing process, and not only in the period when the construction has been completed, under the completed-contract method of accounting, revenue, expenses, and gross profit is deferred […]
Category: International Taxation
Income Tax – the first law
July 1, 1862 First Income Tax bill President Abraham Lincoln signed the first income tax bill, levying a 3% income tax on annual incomes of $600-$10,000 and a 5% tax on incomes over $10,000. Also on this day, the Bureau of Internal Revenue was established by an Act of Congress. […]
1099s – Should I do them?
Some companies prepare 1099’s for everyone eventhough it may not be required. If you paid any individual $600 or more for personal services, then a 1099 is required (that includes paying an unincorporated landlord). When we say individuals, that may be confusing. Clearly if you wrote the check to JONES, INC, that is a corporation but I’d get […]
Sale of Business BUT What did you Sell?
You don’t buy or sell a business. You buy or sell either Ownership position in a corporation is evidenced by Stock. It is like selling stock in a publically traded corporation. The business is not selling assets. The ownership of the business changed but not the assets nor the liabilities. The new owners just operate the business […]
Florida State Unemployment Tax Rates 2012
Florida Contribution RatesFor 2012, the minimum rate is 2.02% and the maximum rate is 5.4%, except that employers participating in the short-time compensation program will be subject to a maximum rate of 6.4%. New employers pay 2.7% in 2012. The noncharge ratio is .0057, the excess payment ratio is .0089, the gross benefit ratio is […]
IRS Names… guess who to IRPAC!
Wednesday, January 26, 2011 IRS Names 10 New Members to IRPAC The Internal Revenue Service today announced the selection of 10 new members in 2011 for the Information Reporting Program Advisory Committee (IRPAC). “Members of IRPAC provide industry perspective and recommendations that assist the IRS in making decisions about third-party information reporting, which is important […]
2011 Health Insurance MUST be on W2 for >2% Sub S shareholder
HERE IS HOW TO REPORT IT Health Insurance for the entire family goes on Shareholder’s W2 Box 1 & Box 14 (Does not affect FICA). W3 Box 1 only Form 941 Box 2 only (Does not affect FICA). Form 940 Included in Total Payments Line 3 & Box 4 – excluded from FUTA tax UCT-6 […]
Read More… from 2011 Health Insurance MUST be on W2 for >2% Sub S shareholder
2012 Mileage Rates
The 2012 federal mileage rates for the use of a car (also vans, pickups or panel trucks) will be: $0.555 per mile driven for business purposes $0.23 per mile driven for medical or moving purposes $0.14 per mile driven in service of charitable organizations […]
How Often Does Tax Law Change….
There were approximately 4,430 changes to the tax code from 2001 through 2010, an average of more than one a day, including an estimated 579 changes in 2010 alone. […]
2012 Payroll Tax Cut Extended 1st Two months
A 2-Month Extension to the Payroll Tax Cut Signed Friday, December 23, 2011 a 2-month extension of the payroll tax cut was signed. This means the employee social security rate will remain at 4.2% through February 29, 2012. Paycor has updated the tax rate to 4.2% for January and February 2012. We continue to closely […]
Read More… from 2012 Payroll Tax Cut Extended 1st Two months