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News for Our Business Clients

By October 10, 2011January 31st, 20142011, Tax Tips

1. New 1099-K reporting form for 2011 
All businesses accepting credit cards will receive a form 1099-K from their credit card processor in January of 2012. There will be a separate line on your business tax return (Schedule C, 1065, or 1120) to report credit card sales. Therefore, we will need this 1099 Form as soon as you receive the form in order to properly complete your 2011 business tax return.

2. FUTA tax rate change
The FUTA tax rate was reduced from .008 to .006 effective July 1, 2011. This rate change will be reflected when we prepare your Form 940 for 2011.

3. HIRE Credit 
Just a reminder that there is a $1,000 tax credit for any employee hired between February 3, 2010 and December 31, 2010, who qualified for the HIRE credit and remained employed by the employer for 52 consecutive weeks. This credit will be taken on the 2011 tax return for the business.

4. NEW – Workers Compensation Deductible
Colorado law now permits an employer to buy Workers’ Compensation Insurance with a deductible ranging from $500-$5,000. We suggest that you contact your Workers’ Comp carrier and discuss these options to see if the reduction in premium at the various deductible levels makes sense for your company.

5. S-Corp Health Insurance
Just an early reminder that health insurance premiums for more than a 2% shareholder in an S-Corp must be reported on Lines 1, 14, and 16 on the W-2 Forms. Those of you using a payroll service bureau, remember to provide this information to your payroll company prior to December 31, 2011.

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Accounting & Tax Solutions

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