Can you claim your elderly parent as a dependent on your tax return?
Perhaps. It depends on several factors, such as your parent’s income and how much financial support you provided. If you qualify for the adult-dependent exemption on your 2017 income tax return, you can deduct up to $4,050 per qualifying adult dependent. However, for 2018, under the Tax Cuts and Jobs Act, the dependency exemption is […]
Wage base increases and so does Social Security tax
The income level for those paying into Social Security will rise slightly this year. The Social Security Administration announced in the fall that the 2018 taxable wage amount will increase from $127,200 to $128,700. In other words, the maximum amount of wages in 2018 that are subject to the 6.2 percent Social Security tax rose […]
Time to begin year-end payroll planning
Preparations are underway for numerous holiday events and outings, but for small business owners, other year-end activities take center stage. The following are some steps that must be taken by business owners who handle their payroll functions in-house: Have employees confirm their address and Social Security numbers. Use the Social Security Administration’s Social Security Number […]
Final responsibility for payroll taxes lies with employer
Many of our clients contract with a payroll service provider to take care of payroll tax filing responsibilities. It is important to remember, though, that the ultimate responsibility for withholding income tax and both the employer and employee portions of Social Security and Medicare taxes lies with the business owner. While most payroll service providers […]
No Change In Social Security Benefits
The Social Security Administration has announced that there will be no increase in monthly Social Security benefits in 2016. Additionally, the maximum amount of wages subject to Social Security taxes will remain unchanged at $118,500.
Let’s Get To Work
A simple hire could prove to be complicated Do you hire helpers to care for your children or do household cleaning? What about hiring someone to maintain your lawn and garden? Do you pay them cash or “under the table?” Do you know that the IRS has rules on how much you can pay these […]
Classified: Employees or independent contractor?
The number of employees a company has and the number of hours worked now take on more significance for business owners since federal healthcare coverage requirements are based on those variables. As a result, some employers are tempted to try to classify workers as independent contractors rather than employees. The Department of Labor and the […]
Are you paying your fair share?
Tax policy often hinges on questions of fairness, in particular, are the wealthiest Americans paying enough in taxes compared to middle- or low-income earners. According to recent IRS statistics, high-income earners continue to pay a greater percentage of their income in taxes. Kiplinger reports that in 2012, the most recent year available, the top 1 […]