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Category: Taxes


New legislators make tax reform a possibility

Experts have noted that tax reform is heavy on legislator’s minds and will likely be on their agendas in 2015. Corporate tax reform has come under the most scrutiny. As 2015 began, so did a new group of Congress men and women. The Republicans now hold the majority in both the House and the Senate. There are also two new committee chairmen. More changes are set to come, including the possibility of Representative Paul Ryan, a Republican from Wisconsin, being named the chairman of the House Ways and Means Committee. The Senate Finance Committee chairman seat is likely to be delegated to Orrin Hatch, a Republican from Utah. Experts believe these individuals with leadership positions are going to take steps to ensure corporate tax reform occurs. Experts have also stated that if Congress is to make changes to corporate tax laws, that retail investors and government bonds should not be part of the conversation. Many have expressed concerns about only focusing on corporate tax reform. Most organization ...

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Many anticipate rule regarding CEO pay disclosure

Many wait in anticipation on a rule from the Securities and Exchange Commission that will require companies to share how much they are paying their top executives. This begins a two-month trial period for the proposal that has come under fire.  The rule was originally released in early September. The “draft rule” is required under the Dodd-Frank Wall Street reform legislation. The regulation demands that companies share the median or average income of all their rank-and-file employees along with the salaries that their top executives take home every year. Employers will then be forced to determine the pay ratio, showing the difference between the two figures. Those who favor the rule believe that it might help impose shame on companies that award over-the-top salaries to their highest employees while giving lower-level workers the ability to negotiate for a higher pay rate. Business groups, advocate and banks fear that the cost that companies would incur to be in compliance with th ...

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Payroll Tax Cut Doesn’t Mean More Money for All Taxpayers

Payroll Tax Cut Doesn’t Mean More Money for All Taxpayers   The deadline has passed for employers to adjust their payroll systems and lower the rate on Social Security payroll taxes to 4.2 percent from 6.2 percent. Employers have until March 31 to adjust checks to give back any excess amounts to employees that have been withheld this year.   However, taxpayers who make less than $20,000 a year will actually see a tax hike. For example, an employee who makes $15,000 a year will pay $100 more in taxes this year, compared to 2010. A joint tax return will mean paying $500 more. The reason is that the payroll tax cut comes at the exact same time the Making Work Pay tax credit expires. As part of the economic stimulus plan, the credit took a flat $400 off federal withholding taxes to single filers and $800 to joint filers. Since the new payroll tax cut is only based on a percentage of earnings, employees who do not make a lot of money will not see much savings.   On the other hand, people wi ...

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Payroll Tax Cut Proposed

Payroll Tax Cut Proposed A senator from Ohio has proposed a major payroll tax cut for employers. Republican Rob Portman proposed a one-year, two-percentage-point reduction in payroll taxes that are paid by employers. The senator says he backs the payroll-tax reduction already in place for employees, but believes giving employers the same break is fair and would help create jobs (possibly 1.4 million a year in the U.S.).   The cost would be $110 billion. Portman maintains the price tag on the bill would be more than offset by getting rid of the healthcare law’s mandate for people to buy insurance. He contends the bill would actually reduce the federal deficit by $85 billion.   The Congressional Budget Office says the savings from repealing the mandate would result in a rise in the number of uninsured Americans (to 39 million in 2019, from the 23 million projected under the current law).   Modern Business Associates is an HR company that focuses on payroll and HR outsourcing.&nbs ...

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Federal W 9 Form

  Federal W 9 Form   What is the Federal W 9 Form?   When you utilize contract workers, like subcontractors or freelancers, they will need to complete a Federal W 9 form and send it to you. This lets your accountant have the correct information needed to complete a 1099 for the outsource is needed.   You should request a Federal W 9 Form from your:: Independent Contractors Freelancers Any outsource that works for themselves   Request a W 8 form instead, for independent contractors who are not U.S. citizens.   It doesn’t hurt to collect a Federal W 9 Form from all your independent outsources, but to save time, you really only need to collect them for ones you pay $600 or more over the course of the year.   The form is quick to complete and basically asks for the person’s name, address and Social Security number. The contractor may substitute their company Employer Identification Number (EIN) if they have one.   Note that the Federal W 9 ...

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