TAKE TIME TO REVIEW THE HEALTH OF YOUR BUSINESS

As an owner and/or manager, you probably spend a lot of time monitoring business operations and dealing with everyday problems. But a longer-term approach is also useful.

GET A HEAD START ON YOUR FORM 1099 REPORTING

No matter what type of business you operate, January is busy. You're trying to get your business off to a good start in the new year, you're closing the books on last year, and you have to complete payroll and 1099 forms by month-end. Why not make time this month to get a head start on at least one of those chores?

POOR RECORDKEEPING MEANS LOST DEDUCTIONS

What's worse than keeping records? Losing tax deductions because you didn't keep records. Tax court cases routinely deal with "unsubstantiated" expenses – business costs that taxpayers claim but cannot prove – and taxpayers routinely lose. Every legitimate and supported deduction can save you tax dollars. As the end of the year approaches, take time to make sure your records are in order. Don't want to deal with reams of paper? Software programs and apps can ease the burden. Give us a call at (518) 798-3330 for suggestions on how to improve your recordkeeping.

CHECK UNCLAIMED PROPERTY LISTS FOR MISSING MONEY

Discovering unexpected money is always a pleasant event and generally even more so this time of year. You don't need to dig between the couch cushions to find it. According to the National Association of Unclaimed Property Administrators (NAUPA), state governments have $41.7 billion in unclaimed property on their books. While it may sound like a scam, you could have a legitimate claim to money such as abandoned bank accounts and utility security deposits that you forgot to collect when you moved. You can claim the funds at no cost. Start by checking http://www.MissingMoney.com, a website officially endorsed by the NAUPA.

DID YOU PAY DOMESTIC EMPLOYEES IN 2015?

Nannies, housekeepers, caregivers – the people who make your home life easier – are your employees, and you're required to comply with income and payroll tax rules. For 2015, you'll need to withhold social security and Medicare taxes when you pay your worker $1,900 or more during the year. You'll also need to provide year-end tax forms and wage statements and file a special schedule with your personal federal income tax return. Contact us at (518) 798-3330 for details.

 

BE AWARE OF 2016 PAYROLL RATES

The Social Security Administration announced the 2016 wage base for computing the amount of payroll tax will be $118,500, the same as 2015. The wage base is the maximum amount of wages subject to the social security portion of the payroll tax you may know as "FICA." The total FICA rate is composed of two parts and the rates for both remain the same for 2016. The social security tax portion is 6.2% of an employee's wages on amounts up to $118,500. The basic Medicare portion is 1.45% of an employee's wages, no matter the amount. Note that employers must also withhold an additional 0.9% Medicare tax on wages over $200,000.

WILL YOUR EMPLOYEES STAY AFTER THE HOLIDAYS?

A survey of employees and human resources professionals showed that what employees want and what the professionals think they want may not be the same. According to the survey, one in three employees is looking for a new job. Reasons include salary levels and lack of a clear career path. If employee retention is a problem at your company, perhaps you're not aligning your business interests with that of your employees. What to do? Start by asking employees what motivates them. The survey showed employees are willing to share – if you ask the right questions.

NEED MONEY TO PAY BILLS? RAIDING YOUR 401(K) IS NOT A GOOD IDEA

When you're short of cash, raiding your 401(k) plan may seem like a good idea. Here are two reasons why it isn't.

MAKE USE OF YOUR 2015 GIFT TAX EXCLUSION

This year you can give up to $14,000 to as many individuals as you want without any gift tax liability. If you're married and your spouse joins in the gift, you can, as a couple, elect to give $28,000 to each person with no gift tax liability. Once December 31, 2015, has come and gone, your 2015 gift tax exclusion is also gone. If you plan to make gifts this year, remember that your gifts must be completed by then.

 

GOOD COMMUNICATION KEEPS YOUR CUSTOMERS HAPPY

As a business owner, you know how much effort goes into attracting new customers. So once you've found a new customer, you want to keep that customer as long as possible. Good communication can help.