Advance earned income credit has been repealed for 2011. This credit allowed certain low-income employees to receive an advance payment of the earned income credit in their paychecks. Their withholding was lowered to take into account the payment. However, employers are cautioned that the advance earned income credit has been repealed beginning with the 2011 tax year. … [Read more...] about Employers Must Stop Advance Earned Income Credit Payments in 2011
New Reduced Payroll Tax for Employees Can Be a Headache for Employers
As part of the new tax cuts for 2011, the Social Security (OASDI) payroll tax withholding for employees has been cut by a full 2 percentage points from 6.2 percent to 4.2 percent of wages paid. This late action has created problems for both the IRS and employers in implementing this last minute change. The IRS recently issued guidance to employers: Employers should start … [Read more...] about New Reduced Payroll Tax for Employees Can Be a Headache for Employers
It’s Tax Time!
Are You Ready? If you’re like most taxpayers, you find yourself with an ominous stack of “homework” around TAX TIME! Unfortunately, the job of pulling together the records for your tax appointment is never easy, but the effort usually pays off when it comes to the extra tax you save! When you arrive at your appointment fully prepared, you’ll have more time to: Consider every … [Read more...] about It’s Tax Time!
2011 Required Minimum IRA Distributions
Now that the New Year is here, you can begin taking your required minimum distribution (RMD) for 2011. The following is an overview of the rules regarding these mandated distributions for older taxpayers. The IRS does not allow IRA owners to keep funds in a Traditional IRA indefinitely. Eventually, assets must be distributed and taxes paid. If there are no distributions, or if … [Read more...] about 2011 Required Minimum IRA Distributions
Are You Behind on Filing Your Tax Returns?
The IRS has identified taxpayers who fail to file income tax returns and effectively stop paying income tax as a serious threat to tax administration and the American economy. The IRS's role in combating the area of nonfiling is that of outreach, education, and enforcement of the tax laws. However, it is understood that there are those who will not respond to outreach efforts … [Read more...] about Are You Behind on Filing Your Tax Returns?