BA Harris LLP

Quickbooks and 1099s

Published on Friday, January 28, 2011

You can use the 1099 feature in QuickBooks to create a summary report of the vendors that are eligible for Form 1099-MISC. There are several steps that are necessary for this report to generate the correct information.  Read More...

New FICA/Payroll Tax Withholding for 2011

Published on Tuesday, January 18, 2011

As you begin to prepare your first payroll checks of the new year and make your 941 deposits you may notice a difference in the Fica amounts. Since we can all remember, the employer portion and employee portion of FICA has always been the same amount, but beginning in 2011 this has changed. Employees have received a 2% increase to their net paycheck courtesy of the U.S. government. The amount withheld from employee paychecks for FICA is now 4.2%, while the employer portion continues to be 6.2%. So as you prepare payroll for 2011 and begin to make those payroll deposits for 2011 take note of this change. If you use Quickbooks to process payroll and have downloaded the payroll update for 2011 this change will be reflected in your software via the update. As always, please do not hesitate to contact us with any questions we can answer on this or any other issues or concerns that arise. Read More...

California Franchise Tax Board and Mandatory Electronic Payments

Published on Friday, January 07, 2011

California has passed a law requiring individuals to remit all future tax payments electronically once they either make an estimated tax or extension payment in excess of $20,000 or file a tax return reporting total tax in excess of $80,000. Read More...

New Reporting Requirements for Credit and Debit Card Payments

Published on Wednesday, January 05, 2011

The Housing Assistance Tax Act of 2008 enacted Internal Revenue Code section 6050W requiring organizations (banks, credit card companies, others) who settle credit/debit card transactions to report on a new 1099-K form the amounts settled with “payees”. This new rule is effective January 1, 2011. As an example, if your business collects and deposits credit card payments from customers totaling $30,000 during 2011 your credit card company is required to issue you a 1099-K reporting the amount they “settled” with you, or $30,000. The new rules also require taxpayers who accept credit/debit cards as payment to segregate card payments received during the year on their tax returns as a separate line item of gross income. Read More...

Non Tax Related Points of Interest

Published on Tuesday, December 28, 2010

Happy holidays and (almost) New Year. If your holiday break is anything like mine you don’t mind getting back to the office. Don’t misinterpret the meaning of that comment however as I said “don’t mind”. This is different than “can’t wait” or “look forward to”. Hopefully everyone looks forward to the holidays like I do. Festivities, family, friends, food and drink (I don’t know a word for drink starting with “F”). All of these are enjoyable; especially the family and friends part because you get to see those who you may not otherwise see as regularly. But you can’t argue that the holidays are busy and tiring. Hence my comment about not minding getting back to the office. Lots to do around the office as we, and most CPA firms, are planning and preparing for another “tax season”. Making lists, checking them twice, preparing tax estimates for clients who have been naughty and nice.  Read More...