What’s the difference between and employee and a contractor?
Some employers choose to classify their workers as 1099 contractors instead of as traditional W-2 employees. Generally, this is a bad idea that invites all sorts of scrutiny from the taxing authorities (IRS, state, departments of labor, etc.). This infographic does a good job of highlighting the differences between employees and contractors and highlights the consequences of misclassification. Why Employee vs. Independent Contractor Classification Matters [INFOGRAPHIC] | Wunderland via Work...
read moreA Heads Up to Restaurant Owners
The IRS has announced their intent to “to more closely examine the taxation of tips and service charges in 2014” (via Accounting Today). Now, we all know that employees are reluctant to report all their tips, but with the additional scrutiny we are expecting we are advising our clients to be diligent in their efforts to assure compliance with tip reporting requirements. The IRS has put together a Guide to Tip Income Reporting that you can hand out to your staff that explains the employee’s responsibility and answers...
read moreTips on Outsourcing Your Small Business Payroll
For those small business owners who find that they just don’t have enough hours in the day to get everything done, outsourcing certain company operations, such as payroll, can be cost-effective. It can also relieve stress and reduce the possibilities of errors. Among some of the greatest benefits of outsourcing your payroll is that it gives you, as the business owner peace of mind knowing that payroll is being completed by professionals. A few of the other benefits are: Reduces payroll mistakes Payroll is completed on time each week Greatly...
read moreIRS Announces 2012 Standard Mileage Rates
The Internal Revenue Service today issued the 2012 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, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 55.5 cents per mile for business miles driven 23 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable organizations The rate for business miles driven is unchanged from the...
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