The Internal Revenue Service (IRS) is reminding entities with Employer Identification Numbers (EINs) of their responsibility to update that information whenever the contact information or responsible party changes. IRS regulations require EIN holders to update...
It will be many years before we have a full understanding of what COVID-19 cost us as a society. But as that information is incrementally collected and released, we’re starting to see the picture take shape. One of the most recent reports on the subject was issued by...
We are making some changes with our tax software and will be using a different platform. This new platform will cause an update to our client portals. We will be sending out registration emails in the next couple of months. These new portals do not require Citrix...
The Internal Revenue Service has released a midyear report to Congress that details a significant backlog of tax returns dating back to the end of tax filing season, and many of those returns have yet to be processed. While backlogs are not unusual, this year’s is far...
With home mortgage rates at historic lows, it may be appropriate for you to consider refinancing your current mortgage. However, refinancing may not always be the greatest idea, even though mortgage rates are low, and even when your friends, relatives, and coworkers...
A taxpayer who is in the business of providing family day care in their home may deduct the ordinary and necessary expenses of their business. The two primary deductions include the business use of their home and the cost of providing meals and snacks to children in...
If you are considering starting a business, the simplest and least expensive form of business is a sole proprietorship. A sole proprietorship is a one-person business that reports its income directly on the individual’s personal tax return (Form 1040) using a Schedule...
If you’re thinking about moving from your current locale, you’re not alone. Americans are on the move for many different reasons: Remote work is increasingly popular and allows employees to live wherever they have access to WiFi, while tax changes introduced by the...
Now that most tax refunds are deposited directly into taxpayers’ bank accounts, the dream of opening your mailbox and finding an IRS refund check is all but a thing of the past. However, since the IRS now does most of its auditing through correspondence, an IRS letter...
We are happy to announce our move into a brand new office space. In the same building, but a few steps higher, you will find our newly renovated office space in Suite #202. As we continue to grow as your tax, accounting, and payroll area leaders, our goal is to...
No matter what type of business you operate, you rely on having a predictable flow of income to keep your bills paid. If you only have a single source of income and it suddenly falters, you’re going to be in trouble. Having more than one income stream is an insurance...
President Biden presented his proposed American Families Plan (AFP) during his Joint Session of Congress address on April 29, 2021. What follows is an overview of what is included in the plan. But this is only his wish list; Congress will need to draft proposed...
The IRS has begun issuing notice CP508C to taxpayers with “seriously delinquent” tax debt and the service has resumed its program of notifying the State Department of taxpayers’ unpaid federal debts. The U.S. Department of State generally will not renew a passport or...
As U.S. businesses continue to recover from COVID-19’s economic devastation, the U.S. Small Business Administration (SBA) is expanding loan opportunities. The agency announced that beginning the week of April 6th, nonprofits and small businesses will be able to borrow...
The IRS announced on March 31, that it will take steps to automatically refund money this spring and summer to people who filed their tax returns reporting unemployment compensation before the recent law change made by the American Rescue Plan Act. The American Rescue...
May 2021 Individual Due Dates: May 10 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during April, you are required to report them to your employer on IRS Form 4070 no later than May 1110. Your employer is...
As U.S. businesses continue to recover from COVID-19’s economic devastation, the U.S. Small Business Administration (SBA) is expanding loan opportunities. The agency announced that beginning the week of April 6th, nonprofits, and small businesses will be able to...
The IRS did not extend the deadline for the first installment of the 2021 estimated tax payments, which continues to be April 15, 2021. Even though the filing due date for individual returns has been extended, in many cases the amount of estimated tax payments...
Just a reminder to those who have not yet filed their 2020 federal tax return that thanks to the IRS extending the filing due date, May 17, 2021 is the due date to either file your return and pay any taxes owed, or file for the automatic extension and pay the tax you...
The Consolidated Appropriations Act, 2021 (CCA), included a very tax-beneficial provision that liberalized the interaction between PPP loans and the Employee Retention Credit (ERC). Prior to its passage, if an employer obtained a Paycheck Protection Program (PPP)...
In order to help trades and businesses to retain employees and keep them employed during the COVID-19 crisis, the Coronavirus Aid, Relief, and Economic Security (CARES) Act created the Employee Retention Credit for 2020. As part of the Consolidated Appropriations Act,...
An increased child tax credit is part of President Biden’s stimulus package to help tackle the coronavirus pandemic and stimulate the economy. This stimulus package will provide lower-income parents with substantial financial assistance and support various other...
President Biden’s American Rescue Plan has extended the $300 benefit through September 9, 2021, and increased the number of weeks an individual can qualify for the benefits from 50 to 74. The American Rescue Plan Act originally slated the weekly amount to be $400....
The American Rescue Plan Act has passed and includes a third much-anticipated economic impact payment (EIP). This is one of several government measures intended to help financially stressed citizens. This will be the third round of EIPs since the pandemic began...
The Pandemic Unemployment Assistance and Pandemic Emergency Unemployment Compensation were extended for 11 weeks. Congress will add $300 to all weekly unemployment benefits. Workers who rely on multiple jobs and have lost income will also be eligible for a weekly...
A second round of stimulus will include direct payments of up to $600 per adult and per child. Call Key2 Accounting today with any questions you may have. For more details visit: https://www.irs.gov/coronavirus/economic-impact-payments
Paycheck Protection Program (PPP): The relief package creates a second loan from the Paycheck Protection Program, called a “PPP second draw” and allocates $325 billion in aid to small businesses, with a total $284.5 billion of that going to reauthorize the Paycheck...
December 2020 Business Due Dates: December 1 - Employers During December, ask employees whose withholding allowances will be different in 2021 to fill out a new Form W4 or Form W4(SP). December 15 - Social Security, Medicare and Withheld Income Tax If the monthly...
Concerning the requirement that employers offer COVID-19 paid sick leave to their employees, and, in connection therewith, making an appropriation. On the effective date of the act through December 31, 2020, all employers in the state, regardless of size, are required...
Operating a small business is an exhilarating and, at times, overwhelming endeavor. There are so many details to keep track of that it’s easy to forget about the nuts and bolts of your organization’s finances. Small business owners have a lot on their plate. Whether...
To say COVID-19 has made 2020 a disastrous year for just about everyone would be an understatement. In response to the economic slowdown and losses of income, Congress passed several extensive laws to benefit individuals and businesses that suffered financial hardship...
You have probably heard others discussing living trusts but may not understand the reasons for them or whether you should have one. Living trusts are an estate-planning tool, and there is not a one-type-fits-all living trust. Each one is customized to suit the special...
For taxpayers who believe they are owed a refund from the Internal Revenue Service, you have three years from the original due date of the return in order to file and claim your refund. However, if you wait too long you will forfeit any refund you might be entitled....
If you are the owner of a small business that obtained a Paycheck Protection Program (PPP) loan, you are most likely aware that the loan can be partially or totally forgiven if you used the loan proceeds for the required purposes. Loan forgiveness is not automatic and...
While much attention has been focused on the Paycheck Protection Program, there are two additional programs designed to help COVID-19 affected businesses retain employees: Employee Retention Tax Credit (ERTC) and Employer Social Security Tax Deferral. The Employee...
Small Business Administration Issues New PPP Loan Guidance: What You Need To Know And FAQs On June 22, the Small Business Administration (SBA) issued new Interim Final Rules (IFR) on the recently passed Paycheck Protection Program Flexibility Act (PPPFA), clarifying...
Anyone who already took a required minimum distribution (RMD) in 2020 from certain retirement accounts now has the opportunity to roll those funds back into a retirement account following the CARES Act RMD waiver for 2020. The 60-day rollover period for any RMDs...
The CARES Act provides that qualified individuals may treat as corona virus-related distributions up to $100,000 in distributions made from their eligible retirement plans (including IRAs) between Jan. 1 and Dec. 30, 2020. A corona virus-related distribution is not...
Commonly referred to as “stimulus checks” or “recovery rebates”, Economic Impact Payments to individuals are a key provision of the Corona virus Aid Relief, and Economic Security (CARES) Act legislation that Congress passed to help reduce the financial burden of...
In a down economy, making good decisions is critical. These informed decisions should come from accurate financial numbers. Numbers determine which levers to pull to increase your profits. Businesses need to review and analyze their numbers periodically. Many business...
Were you one of the lucky companies who received Paycheck Protection Program (PPP) funds? If you want to have those funds forgiven, you are required to spend those funds over the next 8 weeks on employee and office costs. Below is the required guidelines for Paycheck...
There is a new emergency loan program that will provide cash-flow assistance to those small businesses impacted by the current COVID-19 quarantine situation. The Paycheck Protection Program, commonly referred to as the PPP, is a program that is structured to fit...
Coronavirus-related paid leave for workers and payroll tax credits for small and midsize businesses Under the Families First Act, small and midsize employers will be able to take advantage of refundable payroll tax credits. This credit will enable employers to fully...
Dear Valued Clients Potential Clients and Small Business Partners: Key2 Accounting wants to let you know that we are here to stand by you, our small business clients and partners as we navigate the unchartered waters of the Coronavirus. We have provided some updated...
How should I let my employees know we had to temporarily close our doors due to COVID-19? It is always best practice to give your employees as much notice as possible given the situation. If you are closing your doors temporarily such that your employees will no...
IRS delays tax filing and payment deadlines to July 15 for all taxpayers ________________________________________ The Treasury Department and the IRS are providing special tax filing and payment relief to individuals and businesses in response to the COVID-19...
As most employers are discovering with the unprecedented disruption caused by the Coronavirus, we should prepare for changing work environments. What we are learning from the COVID-19 pandemic can be applied to other work disruption events such as wildfires, weather...
We are trying to extend our help in the following areas to all of our clients with the rising uncertainty surrounding COVID-19: • Cash flow planning • Breakeven point analysis • Assisting with cost cutting strategies • Support with applying for loans when they become...
CORE 24 is an engaging e-learning program for anyone who wishes to advance their business knowledge. It's “Entrepreneurship in a box”. 24 essential interactive business concepts (called “cores”) for business success. Nuggets of wisdom from experienced professionals...
When you hire an employee who starts in 2020, you must give them the newly designed Form W-4, which is less complex, more transparent, and makes it easier for your employees’ withholding to match their tax liability. The new form has been renamed Employee’s...
The Internal Revenue Service issued final regulations that require taxpayers to reduce their charitable contribution deductions by the amount of any state or local tax credits they receive or expect to receive in return. The IRS also stated that taxpayers may treat...
This is a good time of year to review your payroll withholding to make sure you are on track with regards to your 2019 income taxes and having the correct amount withheld or paid in with estimated payments. A Paycheck Checkup using the IRS Withholding Calculator can...
We know turnover can be difficult. We have your back when it comes to getting that final paycheck cut and promise to make the process easy. If you are interested in learning more about our payroll services, please feel free to reach out to us at Payroll Vault. When...
While some tax obligations come with safety valves, such as the option of filing for an extension on income tax returns, there is no leeway with payroll taxes. If you file your reports or make withholding deposits late, the meter on interest and penalties starts...
Employee time theft is a serious crime and occurs when an employee gets paid for time or work they did not do. If you pay a full-time employee $20 per hour, and they steal ten minutes every day, that employee costs you $869 per year in stolen time. If you have 30...
Recently the Supreme Court has voted in favor of the State of South Dakota in the Wayfair Case which might affect your business, with Supreme Court Decision and that Decision Explained. Basically the ruling states that Colorado businesses selling products to other...
Home Tax Deductions "Mortgage Interest" - New tax law imposes a lower dollar limit on mortgage qualifying for home mortgage interest deduction. Starting this year taxpayers may only deduct interest on $750,000 of qualified residence loans. This is down from the...
K-12 education - 2018 changes allows distributions from 529 education savings account plans to be used to pay up to a total of $10,000 of tuition per beneficiary each year at an elementary or secondary (k-12) public, private or religious school of your choice. Tuition...
The passage of the Tax Cuts and Jobs Act, which will affect 2018 tax returns. Checking withholding amounts is important. These tax law changes include: • Increased standard deduction • Eliminated personal exemptions • Increased Child Tax Credit • Limited or...
Many owners of sole proprietorships, partnership, trusts and S corporations could get to deduct up to 20 percent of their qualified business income. The new tax deduction for owners is referred to as Section 199A deduction which was created by the Tax Cuts and Jobs...
When a business utilizes a timekeeping system for tracking employees time, they typically have fewer payroll errors. For example, time is not inflated, it’s easier to track overtime and vacation accruals, and it assists with staying in compliance of current labor...
A happy staff is typically more productive. Businesses can save money by employing one productive person rather than two unproductive people. You may be wondering what you can do to keep your staff happy and productive. There are several ways, and payroll is a great...
Did you know that the Colorado Department of Labor and Employment (CDLE) requires all employers with at least one employee to carry Unemployment Insurance (UI)? Unemployment Insurance is a state pool funded by employers to pay employees who find themselves in need of...
If your company has been awarded a contract for a federally funded project, you must pay your workers at least prevailing wages (including fringe benefits) according to the Davis-Bacon Act. You will be required to pay your employees weekly and submit a weekly...
Over the last two years, the Internal Revenue Service issued new final rules which go into effect for tax years beginning after 1/1/2014. These incredibly complex Regulations require you to keep much better records for Materials & Supplies, Equipment, Fixed Assets...
Income Tax Rate Changes In 2014, taxable incomes above the following thresholds now fall into the 39.6% bracket: Married Filing Separately ($228,800), Unmarried Individuals ($406,750), Head of Household ($432,200), and Married Filing Joint Returns ($457,600)....
Change is sometimes concerning for business owners, but to have vitality in today’s business market it is important to go through justifiable change to not only make your business better, but to also make your workforce happier and more efficient. The biggest changes...
Several new forms will be issued to taxpayers this year from the Affordable Care Act, primarily Form 1095-A, B and C. In order to complete your 2014 return we must have all copies of Form 1095. These forms provide us with the necessary information to report your...
"Phishing" is defined as the attempt to gather secure information such as usernames, passwords, credit card info, etc. by posing as a trustworthy business or organization in electronic communication. A common form of taxpayer phishing we have seen lately involves...
We are participating in the SuperStars Sports Challenge for Partners Mentoring Youth and we need your help! Partners is a local non-profit that creates and supports one-to-one mentoring relationships with positive adult role models and youth facing challenges in their...
The tedious task of bookkeeping can quickly consume your precious time. It’s one of those things business owners often put off and rarely enjoy. We understand that when it comes to bookkeeping, a little help can go a long way. That’s why we customize our bookkeeping...
Donate to the Payroll Vault SuperStars Sports Challenge to benefit Partners Mentoring Youth! The SuperStars Sports Challenge is a unique sporting event aimed at raising awareness of and funds for Larimer County Partners Mentoring Youth, a one-to-one youth mentoring...
Join us next Tuesday, July 29 at 4:30 pm for our Ribbon Cutting Located at the Key2 Accounting & Payroll Vault office 375 E. Horsetooth Rd BLDG 2 STE 101 Fort Collins Hosted by Fort Collins Payroll Vault in conjunction with the Loveland Chamber of Commerce Stop by...
We know tax planning isn't high on your wedding to-do list, but here are a couple things to look out for if you're tying the knot this season: Name changes - make sure to report any changes to your name or SSN to the Social Security Administration (SSA). To do that,...
Many parents pay for childcare or day camps in the summer while they work. If this applies to you, your costs may qualify for a federal tax credit that can lower your taxes. Here are 10 facts that you should know about the Child and Dependent Care Credit: 1. Your...
Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards. You also may have to pay estimated tax if the...
The Affordable Care Act calls for individuals to have qualifying health insurance coverage for each month of the year, have an exemption, or make a shared responsibility payment when filing his or her federal income tax return. You may be exempt from the requirement...
Most people stop thinking about taxes right after they file their tax return, but there is no better time to start tax planning for 2014 than right now. Also, it's never too early to setup a smart recordkeeping system. Here are some tips from the IRS to help you start...
In wake of recent disasters such as Hurricane Sandy. The IRS is warning people to be aware of scams connected with Hurricane Sandy. As is usually the case following a natural disaster, scam artists are impersonating charities to get money or financial information from...
Unless Congress passes an extension, the 2% cut in payroll taxes for employees ends after December 31. The IRS has issued guidance on Medicare surtaxes for upper–incomers. The effective Medicare tax rate will be 3.8% plus the usual 2.9% rate plus an extra 0.9%...
When planning gifts for children on your holiday list, you might want to think beyond the traditional retail offerings. Consider financial gifts that can bestow benefits for many years to come.Some financial gift options you might consider:*U.S. savings bonds. Savings...
January is always a busy month for companies. You're trying to get business off to a good start in the new year, you're trying to close the books on last year, and there's 1099 reporting to complete by month-end. There are several variations of the information returns...
The IRS has increased the standard mileage rates to be used in computing the deductible costs of operating a vehicle for business or when driving for medical or moving reasons. The new rates will apply to vehicle mileage starting January 1, 2013. The revised rates are...
* SOCIAL SECURITY TAXES- Employee's share will increase to 6.2% after 2012, up from 4.2%. * INCOME TAX RATES. 2012 rates of 10%, 15%, 25%, 28%, 33%, and 35% will change to 15%, 28%, 31%, 36% and 39.6% for 2013. *CAPITAL GAINS- Maximum long-term rate will increase from...
Victims of Hurricane Sandy may be entitled to some tax relief, according to an announcement by the IRS. Certain tax filing and payment deadlines from late October on will be extended until February 1, 2013. This includes the final 2012 estimated tax payment normally...
When you own Series EE or Series I savings bonds, you have a tax decision to make. Both types of bonds earn interest monthly. Usually, you’ll choose to defer paying any taxes on the interest until the bond reaches final maturity or you redeem it, whichever comes...
If your business is like most, you put a lot of effort into attracting new customers. After all, that's an essential part of growing the business. But sometimes it's more productive to step back and review your existing customers, and perhaps even get rid of a few....
* SOCIAL SECURITY- taxable wage limit increases from 2012 limit of $110,100 to $113,700 for 2013. Retirees under full retirement age can earn up to $15,120 without losing benefits. * 401(k) MAXIMUM salary deferral increases from 2012 limit of $17,000 to $17,500. The...
It's likely to be a daily occurrence. We've all seen the too-good-to-be-true offers in our e-mail inbox. Bill Gates wants to share his fortune with you! But what do you do when the e-mail has the Internal Revenue Service web address in the FROM box and a subject line...
If you convert a traditional IRA to a Roth, you will pay a price! Converted amounts attribute to tax deductions from contributions. Plus all of the earnings are taxable at ordinary income rates. You may lessen the tax hit by choosing to convert only part of your IRA...
Tick- tock, time is almost up on that six- month extension you filed back in April for your 2011 individual income tax return. If you fail to file your return by October 15th, unless a disaster- relief exception or you have a valid reason, you may be charged...
Many sole proprietors and small business owners agree on the following two issues: they pay too much in taxes and they have difficulty attracting and retaining good employees. 1) Have your business sponsor address a retirement savings plan 2) Consider setting- up a...
If the current job market has you thinking about starting a business of your own, take some steps to increase the odds that your business will succeed. Opening a business is the dream for many people. For guidance to help improve your chance of success, give us a...
There are many reasons why the Internal Revenue Service could be contacting you. Some contacts involve very minor corrections; some are for serious changes that could involve a lot of money. Sometimes the IRS is correct in what they are seeking; sometimes they are...
On June 28, the Supreme Court ruled that the "PatientProtection and Affordable Care Act of 2010" was constitutional, includingthe provision in the law requiring individuals to have health insurancecoverage starting in 2014. Several provisions in the health care law...
Are you thinking of purchasing a vehicle for your business and wondering what type of tax deduction you will receive? The IRS has published depreciation limits for business vehicles first placed in service this year. Because 50% bonus depreciation is allowed only for...
Did you get a tax refund this year? I'm sure you've already heard that you should not be giving the government an interest-free loan. Maybe you've decided to change things for 2012 by revising your withholding or estimated tax payments to reduce the amount of next...
Last December, the 4.2% social security tax rate that workers pay on wages was extended through February 29, 2012. Now a Congressional conference is being held to find a way to extend the lower tax rate through the end of 2012. The sticking point is lack of agreement...
The IRS recently announced that the mileage rate for business driving in 2012 will be 55.5¢ a mile. The rate can be used for cars, vans, pickups, and panel trucks. Companies that don't want to keep track of the actual costs of using a vehicle for business purposes may...
As year-end approaches, take a closer look at your investment portfolio. There may be some tax-saving strategies worth considering. For example * Wash sales. Thinking of selling a security before December 31 to take advantage of a capital loss? To make sure the loss...
