Billing Fraud Schemes Lessons Learned

Many small business owners hire friends and family or have employees who have been with them for years. They may also have vendors they have become close with and do business with regularly. It is easy for small business owners to become lax in their oversight as they trust their employees and other close business…

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IRS Offers More Time to Make Portability Election

Portability is often an effective, go-to estate planning strategy that could make a considerable difference for taxes owed on larger estates, especially with today’s generous exemption amounts. In a recent ruling, the IRS took steps to make filing for portability even easier. More Time to Make the Election Revenue Procedure 2022-32 now grants a surviving…

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Intro to the Accounts Payable Process

The term “accounts payable” encompasses almost all the non-payroll payments a business makes. It’s an integral part of your company’s financial statements. If you fail to track billing properly, the ramifications can be costly; compromised vendor relationships can lead to production and supply problems, creating cascading problems. It’s important to get it right. The accounts…

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What Employers Need to Know About FICA Taxes

The Federal Insurance Contributions Act (FICA) mandates that employers have to withhold, and also match, certain taxes. FICA consists of Social Security (formally known as the Old-Age, Survivors and Disability Insurance, or OASDI) and the Medicare taxes. The current tax rate for the Social Security tax is 6.2 percent for the employer and 6.2 percent…

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Payroll Tax Rates and Contribution Limits for 2022

Below are federal payroll tax rates and benefits contribution limits for 2022. Social Security tax In 2022, the Social Security tax rate is 6.2 percent for employers and employees, unchanged from 2021. The Social Security wage base is $147,000 for employers and employees, increasing from $142,800 in 2021. In 2022 self-employed people must pay 12.4…

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IRS Clarifies Charity Benefits

The Taxpayer Certainty and Disaster Tax Relief Act of 2020 generally extends through the end of 2021 four temporary tax changes originally enacted by the CARES Act. Here is a summary of the provisions (more details are available on the IRS site): Deduction for individuals who don’t itemize; cash donations up to $600 qualify Ordinarily, individuals…

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2021 Tax Tips: A Look at the Future

The end of the year always means the possibility of last-minute tax changes, and this year, that’s especially true. Some of the new legislation may mean major changes starting in the new year, but other proposed bills, such as new capital gains and qualified dividend tax rates, may take effect retroactively. And taxes on the…

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SSA Updates Key Numbers for 2022

The Social Security Administration reviews key numbers each year and usually makes adjustments, and this year, the changes are significant. In a recent release, the SSA announced what is and is not changing for 2022. Here are the key changes: The maximum taxable earnings for the Social Security portion rises from $142,800 to $147,000. (There is…

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Document Management and Recordkeeping At Not-For-Profits

If you work at a not-for-profit that is funded by grants or donations, you need to keep iron-clad records in order to account for every penny in case you are ever audited. However, that does not mean you need to retain all your files forever. Nobody has the storage space for that. Here is a…

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