If you use independent contractors to perform services for your business or rental and you pay them $600 or more for the year, you are required to issue them a Form 1099 after the end of the year to avoid facing the loss of the deduction for their labor and expenses, and to avoid a monetary penalty. (This requirement generally does not apply for payments made in 2011 to a … [Read more...] about Business & Rental Owners – Begin Collecting W-9s for 2011
Tax related
2011 Standard Mileage Rates Announced
The Internal Revenue Service has issued the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 51 cents per mile for business miles driven … [Read more...] about 2011 Standard Mileage Rates Announced
Are You Required to File 1099s?
If you use independent contractors to perform services for your business and you pay them $600 or more for the year, you are required to issue them a Form 1099 after the end of the year to avoid facing the loss of the deduction for their labor and expenses, and to avoid a monetary penalty. The 1099s for 2010 must be provided to the independent contractor no later than January … [Read more...] about Are You Required to File 1099s?
Employers Must Stop Advance Earned Income Credit Payments in 2011
Advance earned income credit has been repealed for 2011.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 However, employers are cautioned that the advance earned income credit has been repealed beginning with the 2011 tax year.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