Merry Christmas 2011
I hope yours is a great one and I wish you all a
Very Merry Christmas.
I will be taking the next week off.
Have a great day.
Happy Thanksgiving Everyone….
Thanksgiving, celebrated on the fourth Thursday in November by federal legislation in 1941, has been an annual tradition in the United States by presidential proclamation since 1863 and by state legislation since the Founding Fathers of the United States. Historically, Thanksgiving began as a tradition of celebrating the harvest of the year.
Enjoy your Thanksgiving Day.
Management Tips for Small Businesses
Cash is the lifeblood of any small business. Here are some tips to help your business maintain a sufficient cash flow to meet its financial goals and run efficiently:
Toughen up your credit policies. Review the payment terms you offer to customers and tighten them up if slow payment is a problem area for your business. For instance, how long are customers given to pay? What action will be taken if a payment is missed? Be sure your credit terms are communicated effectively to customers before transactions are entered into.
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Come up with a budget – and stick to it. Surprisingly, many small businesses do not engage in the budgeting process. A budget can be extremely effective in helping you keep track of whether cost- and revenue-related goals are being met. Depending on the size and complexity of the business, the budget process might be informal or formal, lengthy or simple. Projected revenues and expenses should be broken down by months.
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Tighten up billing. If collecting bills has become a problem for your business, you might want to consider increasing the intervals at which customers are billed–e.g., from three months to one month, or from one month to two weeks.
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Happy Labor Day weekend
How it Came About; What it Means
Labor Day, the first Monday in September, is a creation of the labor movement and is dedicated to the social and economic achievements of American workers. It constitutes a yearly national tribute to the contributions workers have made to the strength, prosperity, and well-being of our country.
The first Labor Day in the United States was celebrated on September 5, 1882 in New York City.[1] It became a federal holiday in 1894, when, following the deaths of a number of workers at the hands of the U.S. military and U.S. Marshals during the Pullman Strike, President Grover Cleveland put reconciliation with the labor movement as a top political priority. Fearing further conflict, legislation making Labor Day a national holiday was rushed through Congress unanimously and signed into law a mere six days after the end of the strike.[2] The September date was chosen as Cleveland was concerned that aligning an American labor holiday with existing international May Day celebrations would stir up negative emotions linked to the Haymarket Affair.[3] All 50 U.S. states have made Labor Day a state holiday.
I’ll have my reviews next week. Please enjoy a safe weekend.
Form to Claim Payroll Tax Exemption for Hiring New Workers
From the IRS -
Form to Claim Payroll Tax Exemption for Hiring New Workers Now Available
WASHINGTON —The Internal Revenue Service has posted on its website the newly-revised payroll tax form that most eligible employers can use to claim the special payroll tax exemption that applies to many new workers hired during 2010.
Designed to encourage employers to hire and retain new workers, the payroll tax exemption and the related new hire retention credit were created by the Hiring Incentives to Restore Employment (HIRE) Act signed by President Obama on March 18.
Employers who hire unemployed workers this year (after Feb. 3, 2010, and before Jan. 1, 2011) may qualify for a 6.2-percent payroll tax incentive, in effect exempting them from the employer’s share of Social Security tax on wages paid to these workers after March 18. This reduction will have no effect on the employee’s future Social Security benefits. The employee’s 6.2 percent share of Social Security tax and the employer and employee’s shares of Medicare tax still apply to all wages.
In addition, for each qualified employee retained for at least a year whose wages did not significantly decrease in the second half of the year, businesses may claim a new hire retention credit of up to $1,000 per worker on their income tax return. Further details on both the tax credit and the payroll tax exemption can be found in a recently-expanded list of answers to frequently-asked questions about the new law now posted on IRS.gov.
How to Claim the Payroll Tax Exemption
Form 941, Employer’s QUARTERLY Federal Tax Return, revised for use beginning with the second calendar quarter of 2010, will be filed by most employers claiming the payroll tax exemption for wages paid to qualified employees. The HIRE Act does not allow employers to claim the exemption for wages paid in the first quarter but provides for a credit in the second quarter. The instructions for the new Form 941 explain how this credit for wages paid from March 19 through March 31 can be claimed on the second quarter return. The form and instructions are now available for download on IRS.gov.
The HIRE Act requires that employers get a signed statement from each eligible new hire, certifying under penalties of perjury, that he or she was not employed for more than 40 hours during the 60 days before beginning employment with that employer. Employers can use new Form W-11, Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit, released last month, to meet this requirement. Though employers need this certification to claim both the payroll tax exemption and the new hire retention credit, they do not file these statements with the IRS. Instead, they must retain them along with other payroll and income tax records.
These two tax benefits are especially helpful to employers who are adding positions to their payrolls. New hires filling existing positions also qualify as long as they are replacing workers who left voluntarily or who were terminated for cause and otherwise are qualified employees. Family members and other relatives do not qualify for either of these tax benefits.
Businesses, agricultural employers, tax-exempt organizations, tribal governments and public colleges and universities all qualify to claim the payroll tax exemption for eligible newly-hired employees. Household employers and federal, state and local government employers, other than public colleges and universities, are not eligible.
The Numbers are in.
The numbers are in.
If you are interested, I have my numbers for tax season up on my page L & R Statistics. They aren’t as bad as first projected, I am happy to announce. L & R had a loss over all, but we happier than we have been. We are glad to report that with new services and new software, things can only improve. L & R is here for good.
L & R numbers are down over all.
Preliminary numbers are in,
For various reason I terminated my relationship with 14% of my client base.
27% of my “stable clients” either no showed or used Tax prep software. (Hopefully Turbo Tax.)
I also showed a 23% grow with new clients.
Overall:
Compared to last years completed returns, to this years completed returns I am showing an overall loss in revenue of 17%.
I find this disturbing giving my track record:
2006-2007 revenue increase + 18% / Client increase + 117%
2007-2008 revenue increase + 25% / Client increase + 125%
2008-2009 revenue increase + 34% / Client increase + 171%
My losses are minuscule compared to my pears across the country who have lost as much as 62% of their tax preparing revenue.
Prepare your taxes on-line With L & R Tax Preparation
L & R Tax Preparation
Tax Preparation, Payroll, and Accounting,
Including online services.
E=MC2 or use QuickBooks
