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The IRS is offering some help to taxpayers in getting organized so the filing season can be as easy as possible for everyone. “Having all needed documents on hand before taxpayers prepare their return helps them file it completely and accurately,” says the IRS. This includes: Forms W-2. Each employer you worked for must send…
Read MoreAs the unemployment rate falls from its 2020 high, employees are switching jobs in record numbers. The new stability in the economy means workers have more leeway to shop around for jobs that fit their lifestyles, needs, and values. Now, the onus is on employers to provide an environment that makes their star team members…
Read MoreIRAs—individual retirement arrangements—are among the most popular retirement savings vehicles. They can be used to reduce taxes on retirement savings, but how do they work? If you create a traditional IRA, you may be able to deduct some or all of your contributions to the account from your income taxes. You also may be eligible…
Read MoreIRS Announces Mileage Rates for 2022
The IRS has issued the 2022 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, 2022, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be: 58.5 cents per mile driven…
IRS Offers Guidance on ERC
The IRS has issued guidance for employers regarding the retroactive termination of the Employee Retention Credit. The Employee Retention Credit now applies only to wages paid before October 1, 2021, unless the employer is a recovery startup business. This guidance can be found in Notice 2021-65. It applies to employers that paid wages after September 30,…
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…
IRS Announces 2022 Limits for Retirement Plans
The IRS has announced the new retirement plan numbers for 2022. Retirement limits for 401(k) and similar plans are up. The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased to $20,500, up from $19,500. IRA limits have changed for certain savers. If…
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…
January Tax Due Date Is Approaching
As the year winds down, it’s time for businesses to start preparing for their tax filings. January 31 is the due date for many significant tasks, as shown below. Businesses should keep in mind that state taxing authorities have their own set of due dates. Also, the IRS will grant extensions because of serious weather-related…
2021 Arizona Tax Law Changes
The Arizona legislature and Governor Doug Ducey passed some significant changes to Arizona tax law in 2021, some of which were designed to circumvent provisions of voter-approved Proposition 208. In November 2020, Arizona voters narrowly approved Proposition 208, a law imposing an income tax surcharge on Arizona’s wealthier citizens to help fund public education. Prop…
Do You Need a Forensic Accountant?
If you discover money missing from your business, you may need a forensic accountant. Forensic accountants are qualified to investigate the source of missing money and determine whether you were robbed or taken advantage of financially. They’re the people you need when you need to find out where the money went. These experts can research…
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…