Bookkeeper services New Jersey provider and tax tips
Top bookkeeper services New York firm offers a few tax guides: A wage garnishment is any legal or equitable procedure where some portion of a person’s earnings is withheld by an employer for the payment of a debt. This is typically initiated through a court order or government agency action (such as an IRS levy) that requires an employer to withhold a percentage of an employee’s compensation. When notified of an order to garnish wages, an employer is legally obligated to make the appropriate deductions from an employee’s salary and direct payments to a designated agency or creditor.
In the past, if you used 10% of your home for a home office, for example, 10% of the profit when you sold did not qualify as tax-free under the rules that let homeowners treat up to $250,000 of profit as tax-free income ($500,000 for married couples filing joint returns). Since 10% of the house was an office instead of a home, the IRS said, 10% of the profit wasn’t tax-free. But the government has had a change of heart. No longer does a home office put the kibosh on tax-free profit. You do have to pay tax on any profit that results from depreciation claimed for the office after May 6, 1997. It’s taxed at a maximum rate of 25%. (Depreciation produces taxable profit because it reduces your tax basis in the home; the lower your basis, the higher your profit.) Provide dependent taxpayer IDs on your tax return! Be sure to plug in Taxpayer Identification Numbers (usually Social Security Numbers) for your children and other dependents on your return. Otherwise, the IRS will deny any dependent credits that you might be due, such as the Child Tax Credit. Be especially careful if you are divorced. Only one of you can claim your children as dependents, and the IRS has been checking closely lately to make sure spouses aren’t both using their children as a deduction. If you forget to include a Social Security number for a child, or if you and your ex-spouse both claim the same child, it’s highly likely that the processing of your return (and any refund you’re expecting) will come to a screeching halt while the IRS contacts you to straighten things out. After you have a baby, be sure to file for your child’s Social Security card right away so you have the number ready at tax time. Many hospitals will do this automatically for you. If you don’t have the number you need by the tax filing deadline, the IRS says you should file for an extension rather than sending in a return without a required Social Security number.
Avoid Taxes on an RMD with a Charitable Donation: Seniors who have a traditional 401(k) or IRA must take a required minimum distribution each year once they reach age 70 1/2. Those who don’t need this money for living expenses may want to consider having it sent directly to a charity as a qualified charitable distribution. “It’s basically a check issued from the IRA and made out to the charity,” Zollars says. This prevents the money from becoming taxable income and could help reduce the amount of Social Security retirement benefits that are deemed taxable, too.
There’s no question that a bookkeeping service saves your business both time and money, but the processes and consistency introduced by one can increase the longevity and efficiency of your business, making you more profitable for decades to come. Hiring a bookkeeping service is about more than just finding someone who can use a calculator and understand QuickBooks. You want a full-fledged team that has the professional background, training and experience to really benefit your business. People whose expertise you can rely on. Ideally, you want to focus on those who have QuickBooks Pro Advisors certification, additional professional certifications in specific accounting software or and those that employ AIPB Certified bookkeepers. Find more details at Bookkeeper New York.
Another benefit of moving your bookkeeping to outsourcing is that you might be able to change the role of an existing employee e.g. the part time bookkeeper, and move her to a revenue generating role instead of an expense. Free up your good employees to help you focus on growth! There are major differences between the three types of bookkeepers and what each can offer your business. Figure out which works for your business and start tackling the problems, or potential problems, with your books.
Organized way of work : We started off as a group of people serving small business owner in their mundane processes, however, within a short period of time, we have soon organized, formalized and achieved a strong system of work which makes us different from our peers in the industry. Design and set up a chart of accounts and the entire accounting package including payroll, accounts receivable, inventory, accounts payable, etc. Discover additional info on mergebookkeeping.com.