Forms due Jan. 31

Don’t forget that Jan. 31 is an important due date if you own a business, or have a side business in addition to your regular job.

Avoid fines by making sure Forms W-2 and 1099-MISC are postmarked or sent electronically by this date to the IRS as well to the people you did business with in 2017. Remember, you may face separate fines for each late form. The Jan. 31 deadline for these forms was unified as part of the IRS’s larger effort to minimize refund fraud.

Posted in Waukesha Accounting

Is your business susceptible to payroll fraud?

Accounting, Tax preparation, taxes, CPA, Milwaukee, Waukesha

Although you may not want to hear it, all businesses can be hit with payroll fraud. Find out how it happens and what you can do about it.

Unless a small business owner handles all aspects of computing and paying payroll, there is room for fraud. Even if your company has only a few employees — it does not guarantee your funds will be safe.

How payroll fraud happens

Perhaps one of the easiest payroll fraud techniques is the overpayment of withholding or payroll taxes. Your bookkeeper simply overpays the government. When the refund check arrives, the employee deposits it to his or her personal account.

In some cases, the employee will have an account at a different bank but in the company name. Such an account could be used for the fraudulent deposit of other company receipts as well. Read more ›

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Do you have a household employee? Don’t ignore the nanny tax

It’s simple enough to overlook this tax related to household employees. But you could be in trouble if you do. Here’s why you’d better pay attention to the nanny tax.

As you review your filing requirements for 2018, make sure you don’t overlook the nanny tax related to household employees. If you have a housekeeper or any other household employee, you could be liable to pay state and federal payroll taxes.

How to know if you must pay the nanny tax Read more ›

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Update your mileage rate reimbursements

If you plan on using your vehicle for business, medical appointments or moving during 2018, make sure you know the standard mileage rates have changed. The standard business mileage rate increased to 54.5 cents per mile (up from 53.5 cents in 2017). The medical and moving rates also increased by 1 cent, to 18 cents per mile. Charitable rates remain at 14 cents per mile.

Posted in car care costs, Milage

Faster tax refund when you e-file, direct deposit

Accounting, Tax preparation, taxes, CPA, Milwaukee, Waukesha

If you want to get your 2017 tax refund as quickly as possible, don’t use snail mail. The IRS asks taxpayers to electronically file 2017 tax returns, and to sign up for direct deposit. Doing this greatly reduces the possibility of lost, stolen or undeliverable refund checks.

Direct deposit also saves money. The IRS reports that U.S. taxpayers pay more than $1 for every paper refund check issued, but only a dime for each direct deposit.

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