Archive for Clifford Benjamin

Independent Contractor And Employee: Why It Matters

Clifford Benjamin- Contractor Or Employee

If you hire someone for a long-term, full-time project or a series of projects that are likely to last for an extended period, you must pay special attention to the difference between independent contractors and employees.

Why It Matters

The Internal Revenue Service and state regulators scrutinize the distinction between employees and independent contractors because many business owners try to categorize as many of their workers as possible as independent contractors rather than as employees. They do this because independent contractors are not covered by unemployment and workers’ compensation, or by federal and state wage, hour, anti-discrimination, and labor laws. In addition, businesses do not have to pay federal payroll taxes on amounts paid to independent contractors.

If you incorrectly classify an employee as an independent contractor, you can be held liable for employment taxes for that worker, plus a penalty.

The Difference Between Employees and Independent Contractors

Independent Contractors are individuals who contract with a business to perform a specific project or set of projects. You, the payer, have the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result.
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Written by | Posted in Employee • Employees V Contractors • Independent Contractors

Are Social Security Benefits Taxable?

Taxes And Social Security-Clifford Benjamin

Social Security benefits include monthly retirement, survivor, and disability benefits; they do not include Supplemental Security Income (SSI) payments, which are not taxable.

Generally, you pay federal income taxes on your Social Security benefits only if you have other substantial income in addition to your benefits such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return.

Your income and filing status affect whether you must pay taxes on your Social Security. An easy method of determining whether any of your benefits might be taxable is to add one-half of your Social Security benefits to all of your other income, including any tax-exempt interest.

If you receive Social Security benefits you should receive Form SSA-1099, Social Security Benefit Statement, showing the amount.
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Written by | Posted in Social Security Benefits

Affordable Care Act Reporting Requirements For Employers

Clifford Benjamin

The health care law contains tax provisions that affect employers. Two parts of the Affordable Care Act apply only to applicable large employers. These are the employer shared responsibility provisions and the employer information reporting provisions for offers of minimum essential coverage.

The size and structure of a workforce determines which parts of the law apply to which employers. Applicable large employers are generally those with 50 or more full-time employees or full-time equivalent employees. Under the employer shared responsibility provision, ALEs are required to offer their full-time employees and dependents affordable coverage that provides minimum value. Employers with fewer than 50 full-time or full-time equivalent employees are not applicable large employers.

As such, calculating the number of employees is especially important for employers that have close to 50 employees or whose workforce fluctuates during the year. You will use information about the size of your workforce during 2019 to determine if your organization is an Applicable large employer (ALE) for 2020.
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Written by | Posted in Affordable Care Act

Now Is The Time To Review Your Small Business For 2020

Clifford Benjamin, Tax Advisor, Daytona Beach, Florida
The first month of the year can be slow for a small business, particularly seasonal businesses. While you may be glad for a chance to take a break after the holiday rush, now is a good time to take stock of several key aspects of your business.

There’s more to running and growing a successful business than keeping the lights on, but many small business owners get so wrapped up in daily operations that they don’t have time to analyze their business. If business has slowed in the first month of 2020, here’s everything that you should evaluate before going into the new year.

Actual Versus Budget

If you didn’t get around to it when preparing your 2020 budget, you should look at your actual versus budget in the last year. A comparison of what you thought your cashflows would be to what they were can be enlightening.

Most businesses compare actual to budget monthly. This can help you identify cash flow gaps, such as when bills came due, but customers hadn’t paid their invoices. Use the information gleaned from this comparison to budget better for the coming year. It can also help with planning for collections activities, allocating employee resources, and future inventory needs.

Product Lines And Service Offerings

Dig deeper into your financial performance. Did a product line perform unexpectedly well? Did something consistently sell out? This could indicate that you need to adjust inventory reorder levels, or perhaps shift your business to carry more related products.

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Written by | Posted in Business Plan

Reporting Virtual Currency Transactions

With the price of Bitcoin hitting record highs in 2017, many Bitcoin holders cashed out not realizing the impact it could have on their tax bill. Many people, for example, did not understand that it was a reportable transaction and found themselves with a hefty tax bill–money they may have been hard-pressed to come up with at tax time. Others may have been unaware that they needed to report their transactions at all or failed to do so because it seemed too complicated.

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Written by | Posted in Bitcoin • Blockchain • Cryptocurrency

What To Do When Your Tax Return Is Late

Tuesday, April 17, 2018, was the tax deadline for most taxpayers to file their tax returns. If you haven’t filed a 2017 tax return yet, it’s not too late, and it may be easier than you think. First, gather any information related to income and deductions for the tax years for which a return is required to be filed, then call the office.

If you’re owed money, then the sooner you file, the sooner you’ll get your refund. If you owe taxes, you should file and pay as soon as you can, which will stop the interest and penalties that you will owe.

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Written by | Posted in Tax Deadline • Tax Extension • Tax Return

Business Tax Provisions: the Year in Review

Clifford Benjamin, Tax Advisor

Whether you file as a corporation or sole proprietor here’s what business owners need to know about tax changes for 2017.

Standard Mileage Rates 
The standard mileage rates in 2017 are as follows: 53.5 cents per business mile driven, 17 cents per mile driven for medical or moving purposes, and 14 cents per mile driven in service of charitable organizations. Read More

Written by | Posted in Tax Changes • TaxConnections

Retirement Plan Options For Small Businesses

According to the US Small Business Administration, small businesses employ half of all private sector employees in the United States. However, a majority of small businesses do not offer their workers retirement savings benefits.

If you’re like many other small business owners in the United States, you may be considering the various retirement plan options available for your company. Employer-sponsored retirement plans have become a key component for retirement savings. They are also an increasingly important tool for attracting and retaining the high-quality employees you need to compete in today’s competitive environment. Read More

Written by | Posted in Retirement • Tax Education • Tax Planning

Tax Brackets, Deductions, And Exemptions For 2016

More than 50 tax provisions, including the tax rate schedules, and other tax changes are adjusted for inflation in 2016. Let’s take a look at the ones most likely to affect taxpayers like you.

The tax rate of 39.6 percent affects singles whose income exceeds $415,050 ($466,950 for married taxpayers filing a joint return), up from $413,200 and $464,850, respectively. The other marginal rates–10, 15, 25, 28, 33 and 35 percent–and related income tax thresholds–are found at IRS.gov.
The standard deduction remains at $6,300 for singles and married persons filing separate returns and $12,600 for married couples filing jointly. The standard deduction for heads of household rises to $9,300, up from $9,250. Read More

Written by | Posted in 2016 Tax Changes • 2016 Tax update • Individual • Tax Provision/Tax Reporting

Tax Changes For 2016: A Checklist

As the New Year rolls around, it’s always a sure bet that there will be changes to current tax law and 2016 is no different. From health savings accounts to retirement contributions and standard deductions, here’s a checklist of tax changes to help you plan the year ahead.

INDIVIDUALS

 
For 2016, more than 50 tax provisions are affected by inflation adjustments, including personal exemptions, AMT exemption amounts, and foreign earned income exclusion.For 2016, the tax rate structure, which ranges from 10 to 39.6 percent, remains the same as in 2015, but tax-bracket thresholds increase for each filing status. Standard deductions and the personal exemption have also been adjusted upward to reflect inflation. For details see the article, “Tax Brackets, Deductions, and Exemptions for 2016,” below. Read More

Written by | Posted in 2016 Tax Changes • 2016 Tax update • Individual • Tax Planning • Tax Tips