Peggy Maltarich retired from a 28 year tax and accounting career as Vice-President of Taxation for RJF International, a $120 million multi-state manufacturing company. She was responsible for all tax planning, audits and compliance for RJF and its’ four related companies. Her prior position was as VP of Taxation for LDI Corporation, a multi million dollar leasing company that operated in every state plus Canada.
The End of Tax Year 2009 is Fast Approaching! Do you know what is different on this year’s forms?
Written by peggy maltarich
Sunday, 15 November 2009 14:11
There are many tax law changes that apply to your 2009 tax return. You should be aware of them so that you can take any appropriate tax planning actions before the end of this year! Read about:
The recently amended first time home buyer creditnow expanded to certain current home owners.
The amount of certain business property purchases you can deduct in full rather than depreciate over several years.
How even non-itemizers may now take a deduction for sales tax paid on the purchase of an auto and much more!
Many of SCORE clients do business in the form of an S Corporation. As the economy falters along with profits, we hear many S corporation owner-employees ask about the IRS requirement of paying yourself a reasonable salary.
The IRS requirements states “S corporations must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation before non-wage distributions may be made to the shareholder-employee. The amount of reasonable compensation will never exceed the amount received by the shareholder either directly or indirectly.” If one of the shareholders performs no services for the corporation, they are not considered employees and do not need to be paid salaries.
Follow these rules to get the most out of your medical insurance premiums
If you are a shareholder-employee in an S Corporation, you may very well want to have the S corporation provide health and/or accident Insurance for you and other family shareholder-employees. If you structure this correctly, you can get the most advantageous tax effect. If you do it wrong, you will miss out on an important tax benefit.
Are the people working for you independent contractors or employees? Get it wrong and you can either be paying too much in payroll taxes Or risking having to pay substantial penalties.
So how are you supposed to know? The determinant is the degree of control and independence that you have over the person doing the work. It can be behavioral, financial and/or legal. If you as an owner control the work of the person doing it, they are your employee. How do you pay the worker? Do you reimburse for expenses? Who provides the tools and supplies? If you pay for a specific job, do not provide the tools and supplies, reimburse expenses and require an invoice, you probably have an independent contractor.
This is a complex subject. If you have questions and want further assistance, call SCORE Naples for counseling help (239)430-0081 or Click here and leave us a note.
Resource News
Starting a Business
So you are contemplating starting your own business. CONGRATULATIONS!
Business ownership can be extremely rewarding, but remember, it is generally very hard work.
Below we have listed online resources which cover many areas needed to successfully start your business. Before you get too far, make sure that you have completed your Business Plan, which will help you throughout the rest of the process including financing and anticipating upcoming issues.
Again, always remember that SCORE is available with counselors to help you through the process.
As you embark on your journey of entrepreneurship, remember two things:
If you really want to do something, you will find a way. If you don't, you will find an excuse.
While sometimes things go wrong, never justify failure.
Peggy Maltarich retired from a 28 year tax and accounting career as Vice-President of Taxation for RJF International, a $120 million multi-state manufacturing company. She was responsible for all tax planning, audits and compliance for RJF and its’ four related companies. Her prior position was as VP of Taxation for LDI Corporation, a multi million dollar leasing company that operated in every state plus Canada.
If you are a shareholder-employee in an S Corporation, you may very well want to have the S corporation provide health and/or accident Insurance for you and other family shareholder-employees. If you structure this correctly, you can get the most advantageous tax effect. If you do it wrong, you will miss out on an important tax benefit.
