BA Harris LLP

Are You Subject to the Household Services (Nanny) Tax?

Published on Wednesday, November 22, 2017

If you pay an individual more than $2,000 in a calendar year for household services such as childcare/nanny services, you are considered a household employer. As such you are responsible for the reporting and payment of payroll taxes on your household employee(s). This includes filing quarterly state unemployment reports with the Idaho Department of Labor (and quarterly payment of state unemployment tax along with the filing), annual forms 910 and 967 with the Idaho State Tax Commission and annual forms W-3 and W-2 with the Social Security Administration. The form(s) W-2 must also be given to your household employee(s) before January 31st each year. These forms require personal information on the employee(s) as well – name, address and social security number – so be sure to obtain this information from the employee(s) when you hire them. In addition, payment of the Federal Unemployment, Social Security and Medicare taxes are done by filing schedule H with your individual income tax returns. Read More...

Affordable Care Act and Health Reimbursement Arrangements

Published on Tuesday, January 20, 2015

The Affordable Care Act (ACA) added new requirements for health insurance coverage.  Although small employers (those with fewer than 50 full-time employees) are not required to provide health insurance coverage, there are still some rules that come into play. Read More...

Substantiation of Business Expenses

Published on Tuesday, January 20, 2015

For certain business expenses, taxpayers are required to provide specific information substantiating the expense in order to deduct.  These four common expenses require specific detail: Read More...

Estate Taxes, Portability, and Planning for All Married Couples

Published on Friday, January 18, 2013

One of the many provisions made permanent by the American Taxpayer Relief Act on January 1, 2013 was a $5 million exclusion (adjusted annually for inflation) for estates of decedents dying after December 31, 2012. This is great news as otherwise it would have reverted back to a $1 million exclusion. Along with the higher exemption, another permanent provision is “portability” between spouses. Portability refers to the ability to allow the surviving spouse to apply the unused portion of the deceased spouse’s $5 million exclusion in addition to the applicable $5 million exclusion available to the surviving spouse . Using 2013 inflation adjusted amounts; this results in the ability for a married couple to pass up to $10.5 million to their heirs free of estate tax. However, the decedent’s estate (the executor) must make a timely election, generally within 9 months of the date of death, to utilize this provision. Read More...

Vacation Rentals Beware

Published on Thursday, November 15, 2012

If you have a second home, maybe in McCall or Sun Valley, and occasionally rent it out on weekends, odds are you have a sales tax liability that you have not been complying with. Read More...