Subway seized in Broomfield for less than $3000 in taxes

I just posted a comment on Dave Taylor’s blog site intuitive.com about a local Subway shop being seized by the City of Broomfield for less than $3k.

With the tough times some business are having it is very important to remember to set aside the tax money that is due each week or month. With an employer needing to match the FICA deduction, collect sales taxes and maintain funds for workers compensation it can be a tough decision on what to do with that income, do I buy meats and cheese for my Subway or do I pay my taxes?

For Dave’s complete blog and to view the other comments click on the link below.

See Also

• Business Blog at intuitive.com
  subway siezed
• Dave Taylor
  Intuituve,com home page

An exempt status is good for only one year.

If you have filed “exempt” on your 2008 W-4, you are required by the Internal Revenue Service to complete a new W-4 for 2009. You must give your employer a new Form W-4 by February 15th to continue your exemption. If by February 15^th your employer has not received a new Form W-4, the filing status will be defaulted to single with 0 withholding allowances.

 If you claim exempt, but later your situation changes so that you will have to pay income tax, you must file a new Form W-4 with your employer within 10 days after the change. Your claim of exempt status may be reviewed by the IRS. If you have any question  please contact StaffScapes Payroll Department at (303) 466-7864

For additional information please visit http://www.irs.gov/

The IRS recently published information about the non-taxability of unemployment benefits.

The American Recovery and Reinvestment Act of 2009 (or Stimulus Bill) has given individuals that are collecting unemployment benefits in 2009, the ability to exclude the first $2,400 of these benefits. The exclusion applies to each individual separately even for married couples filing. This exclusion applies only to benefits received in 2009, so this will not reduce the taxable wages for the 2008 year form 1040 that most people are filing currently. Further information can be found posted at the IRS website at the following address: http://www.irs.gov/newsroom/article/0,,id=205633,00.html.

IRS will audit 2,000 taxpayers each year for the next three years.

Beginning February 2010, the Internal Revenue Service will begin employment tax audits on 2,000 randomly selected taxpayers (employers) per year for the next three years.  The IRS states that they are conducting this study “to collect data that will allow the IRS to understand the compliance characteristics of employment tax filers”. This means, the IRS is using this three year “study” to find out where employers are not staying in compliance with collecting, reporting, and paying taxes. The IRS also explains that the examinations will be comprehensive in scope. The IRS will not be looking for just a handful of different problem areas, but searching for any and every area of non-compliance. Now is the time to audit your employment compliance practices. Contact StaffScapes to discuss any concerns or problems that you may have.

See Also

• IRS Will Begin Employment Tax Research Study in February 2010

Have you updated your employee applications for new hires?  The new 2011 W-4 has been released by the IRS.  Once the employee completes the W-4 upon hire, the only other time this form would be applicable is if the employee would like to make changes to their withholding election.  When the employees are having their taxes prepared is a great time for them to ask their tax advisor for be submitted for their W-4 withholding.  Select here for the form 2011 W-4.

Are you planning on paying year end or Christmas bonuses?  Please keep in mind that there are a few tax implications when it comes to paying them out.  If you want to pay them on a separate check then the “supplemental tax” comes into play which is a 25% flat Federal tax in addition to Social Security, Medicare and any applicable supplemental state tax rates that would come out.  By adding the bonus to the employees check the normal tax rates would apply. If you have other questions or concerns please don’t hesitate to call StaffScapes at 303-466-7864.