Intuit QuickBooks U.S. Partner Council Press Release Marissa Jones
Employers found to have misclassified workers as independent contractors can be liable for up to three years of unpaid overtime pay, liquidated (double) damages, and attorneys’ fees. Misclassification cases frequently involve numerous employees resulting in substantial liability.
For taxable years beginning on or after January 1, 2021, and before January 1, 2026, qualifying pass-through entities (PTEs) may annually elect to pay an entity level state tax on income. Qualified taxpayers receive a credit for their share of the entity level tax, reducing their California personal income tax. This will allow owners of pass-through entities to pay California personal income tax through that entity. The owner will receive a deduction for the California personal tax paid through the entity in the form of lower income reported to them on their K-1. This allows the owner to receive a
Are you a business owner or self-employed individual? Or a small business owner? It is important to make sure you pay your estimated taxes in order to avoid any unforeseen tax bills or even a penalty for your file the following year. Letting your tax bills pile up leaves unpleasant surprises for the end of the year and we want to make sure that doesn’t happen to you. Keep in mind that estimated taxes are due January 15, 2022. Take a Look! Here’s What You Need to Know for Estimated Tax Payments It’s necessary for taxpayers to make estimated tax
Every year we are asked by our clients, “how can I raise prices in the new year to support growth and curb inflation?” When you are a service based firm, it is easy to get stuck in a rut of keeping the same prices year-over-year. However, year-over-year you are not the same firm. You are growing and you need to sustain that momentum while complementing your added intrinsic value. To keep a steady balance, evaluate competitive costs within the market, the demands of employees, and internal services with billings. Now let’s get started with raising those prices. Remember Warren Buffet’s
Let’s start off your new year with success! We’ve created a checklist to help you prepare for 2022 with ease! Here’s your chance to get organized and make your financial planning more efficient. Good news, if you are a current Logistis member, most of the items on the checklist are taken care of for you so go enjoy your holiday and leave the rest to us. 2021 End of the Year Checklist Make sure to finalize all 2021 financial statements. Gather documentation and check 2021 tax deadlines. Before January 31, submit Form 1099 to contractors. If your business is
Bye, bye lockdown. Hello, travel! Looking to add travel back on the books for 2021 and 2022? Did you know that days spent traveling could effectively be treated as business days? This means that if you take your time arriving at your business destination or have to be on your business trip for a couple extra days, the days spent sightseeing could count as a part of the entire trip. The number of business versus personal days is critical but the scales can tip in your favor. According to this article by CPA Practice Advisor, you must prove that your
Your income can now be updated with the new feature of the Child Tax Credit Update Portal. These changes should be made by November 29, 2021 so that these updates are reviewed in the December payment. Once this has been updated, the payment will be adjusted to verify everyone that they receive the total advance payment of the year. For a married couple, the income update will be applied to each spouse which can influence both of their future monthly advance payments for the child tax credit. This feature can assist families with obtaining the accurate amount of advance child
Latest Update With Child Tax Credit Families now have the opportunity to obtain their Child Tax Credit payment every month by updating their bank account information. This can only be completed through IRS.gov. Online updates can be implemented and people will receive either a direct deposit or check depending on their bank account status. These payments can vary depending on the age of your child. It could go up to $300 per child every month from July to December, which can end up being more than you expect. A few more changes have been made like the increase of credit
Is Forgiven PPP Classified as Non-Taxable Income? It was unclear if loans that were forgiven or not were still taxable when information about PPP came out. Later on, federal information was issued that helped classify this concern. It turns out that the new regulation brings up that forgiven PPP loans won’t be taxed as additional expenses. Also, deductions can also include expenses. This law was only established on a federal level and other states are still in the process of confirming their position. Currently, 29 states are noting this law and are making sure forgiven PPP loans aren’t taxed through
For the last year and a half, we have been making adjustments to the way we work. The pandemic has made working from home more common lately so it is important to capitalize on your home office deduction. Calculating Methods To start, make sure to find a space in your home that is exclusively dedicated to your working environment. After you have your dedicated space setup, you can calculate a “simplified” home office deduction. You can start off with two different methods. The first method is on the easier side where you do simple multiplication. Gather the square feet of
Just because you don’t pay sales tax doesn’t mean that you aren’t responsible for paying it. Let’s Define “Use Tax” Use tax is when you don’t pay tax on goods, but the state you live in requires that you pay sales tax on all goods. It is required to pay sales tax on all goods if you live in a place where sales tax is mandatory. It is still required even if a vendor doesn’t charge it. State income tax return is the most efficient way to pay and report use tax. The California’s sales tax agency states, “if sales
Twenty-five states are increasing their minimum wage rates in 2021. They are Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Illinois, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, Ohio, Oregon, South Dakota, Vermont, Virginia, and Washington.
When it comes to deploying capital, conventional wisdom favors reinvesting in growth that generates a return in excess of capital costs, even though many companies chose to return capital to shareholders.
Do you need basic income and expense tracking? You may not even need a bookkeeper. Many banks have developed very basic expense tracking and spending reports.
We know times are crazy, but there are a lot of important updates for CA sales tax you need to know. Please read highlights from CDTFA below. Relief and Extensions for Filing Returns For all but the largest taxpayers, first quarter 2020 returns were extended and are now due July 31, 2020. For all but the largest taxpayers, monthly returns for March, April, and May 2020 were also extended by three months. Tax returns for the second quarter, running from April through June 2020, remain due on July 31, 2020. For sales and use taxpayers required to make monthly prepayments
Working moms and dads generally spend a significant amount of money on child care while they work/run their business. Why not be able to save additional money while trying to do both? Here are 5 reasons to hire your child! Is your child able to dust, file, check inventory, model your products, etc.? If your answer is yes, you might be able to save money by hiring your child. You can instill fundamental work ethics and spend more time with those you love most in the world. It is a win-win! 1. You can pay less in taxes. Generally speaking,
Logistis’ #1 choice for retierment planing is Guideline. Guideline is on a mission to help every small business offer a 401(k). And to help participants create a retirement they can look forward to. Guideline syncs with Gusto to take care of plan administration, and offers low-cost mutual funds. And unlike many 401(k) providers, they don’t charge any additional fees on investments. Learn more about Guideline 401(k) plans here. As is such, we are reposting this Guideline atricle by NICOLLE WILLSON, J.D., CFP®, C(K)P® 24.JUN.2020. “When you decide to invest your money, you are balancing how much risk you want to
SBA Finally Clarifies PPP Loan Forgiveness Rules: Full Forgiveness For Self-Employed Borrowers We are reposting this Forbes atricle by Brian Thompson becasue he lays it out beautifuly. “If you’re a freelancer or other self-employed person wondering if you’ll get forgiveness for loans taken out under the Paycheck Protection Program (PPP), yesterday brought good news. The SBA filed its 19th Interim Final Rule (IFR), scheduled to be published on Friday June 19th, focusing on revisions made from Paycheck Protection Program Flexibility Act (Flexibility Act) signed into law on June 5th. The unpublished version of the update ensures full forgiveness for self-employed, freelancers and independent
Lowdown On Qualified Business Income Deduction (QBID) Breif Summary of Qualified Business Income Deduction (QBID) Section 199A deduction (aka Qualified Business Income Deduction -or- QBID for short) is a significant tax break for small business owners that was enacted in 2017. QBID is basically a 20% deduction of net qualified business income. Here is an example of how QBID is calculated FOR EXAMPLE: if you make $100,000 GROSS, the deduction is $20,000, which is then multiplied by your marginal tax rate of 24% which equals $4,800 back in your pocket. (Straightforward?! Well there is more to it than that…) If
PPPFA Updates H.R.7010 – Paycheck Protection Program Flexibility Act of 2020Here are some highlights 1. Extension of “covered period” is now 24 weeks from the date of the loan’s origination, or December 31, 2020, whichever comes earlier. *Optional extension2. You can spend up to 40% of your proceeds on certain non-payroll costs, BUT if you do spend this 40% on non-payroll you must spend 60% on payroll in order to be eligible for full forgiveness.3. You’ll have longer to replace FTEs/restore salaries. As long as the FTEs or salary/hourly wage are restored any time prior to the end of 2020,
Part of our job as accountants is to manage cash flow and make sure the best system of process (SOP’s) are in place to support a firms revenue growth. When a new digital creative agencies comes to us, one of the biggest pain points they have is managing ad spends. While there is not a “one shoe fits all” solution, there are some critical practices that must be followed to ensure successful and profitable outcomes. Managing Ad Spends Starts with the SOW. The first step to running a successful agency is learning how to develop a solid + comprehensive Schedule