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BOOKKEEPING TIPS THAT WILL MAKE YOU A BETTER BUSINESS OWNER – Tip #4

BOOKKEEPING TIPS THAT WILL MAKE YOU A BETTER BUSINESS OWNER – Tip #4

HIRE A PRO TO HELP YOU

While you can certainly do the day-to-day record keeping for your business, It’s highly encouraged you to entrust a professional for the final cut before sending over your information to the IRS.

This provides you with four key benefits:

  1. Ensures that your records are double checked by a numbers professional.
  2. Puts your mind at ease that you are running your business the way you should.
  3. Helps you in the long run by getting all the latest tax breaks, credits, and write-offs appropriate for your business. Tax laws are always changing, so it can be a lot to keep up with if you don’t hire a professional to help you.
  4. Makes you less susceptible to a tax audit. When the IRS views your tax returns and notes that it was filed by a professional, it will have a lesser chance of being flagged for an audit.

NOW THAT YOU KNOW JUST HOW SIMPLE IT CAN BE, HOW WILL THESE IDEAS HELP YOU IN YOUR BUSINESS?! LEAVE A COMMENT BELOW AND LET’S CHAT ABOUT IT!

#bookkeeping #accounting #finances #payroll #quickbooks #income #business #orangecountyca #santa ana #tustin #bookkeepingsantaana #bookkeepingoc

Bookkeeping Tip: Don’t Buy a Car Without Doing These Five Steps

Bookkeeping Tip: Don’t Buy a Car Without Doing These Five Steps

1. Research, Research.

Sure, the commercials tell you what a car is offered for. They don’t tell you what you should really pay. Bring these items to the dealership to get the most bang for your buck:

  • Printouts on the true market value of the car from Kelley Blue Book, and Edmunds.com
  • All the information from the dealer’s website on rates, incentives, rebates, and special finance deals.
  • All the information from the competition’s website on rates, incentives, rebates, and special finance deals.
  • Information on your trade in vehicles title, loan, value, etc (if you have one).
  • Information on you such as your credit score, banking info, and anything else that can help you get the dealer to give you competitive financing.

2. Check Out the Car

You probably know which vehicle on the lot is your preferred, but have a back up or two. Do a walk around when brought to the vehicle. Check for damage, dings, dents, etc. Your salesperson may ask for a credit check before the test drive. Tell them you are pre-approved, as this just adds time and effort to your purchase time. You will be asked for your driver’s license. Don’t be afraid to ask questions on the features of the car before getting in.

3. Test Drive Wisely

Follow these tips to get the most out of your test drive:

  1. Insist on test driving the car for at least 15 minutes.
  2. Don’t let the salesperson distract you if you are listening to the car or otherwise focused.
  3. Take a route that allows you to speed up, brake, take tight corners, and even rough street ways.
  4. You can test the radio for a few moments. Turn it off when satisfied. The noise can be distracting.
  5. Test all the instruments to see if they work.

4. Negotiate Like a Boss

Sales people will often as you to “make the opening bid.” Don’t fall for that. Ask for their best price up front. They will show you a document that outlines all the details on the car. Use your handouts from previous research to compare. Be prepared to walk away should the salesperson not meet or beat the prices. You may love the price and the car. Don’t buy until you’ve shopped at least two more times. Be sure to use this dealer’s numbers when visiting the next.

5. It’s Not Over Until You Sign

You have shopped around. You’ve found a car you like. You’re ready to sign. Now it’s time to face off with the dealer’s finance office. This person will attempt to sell you all types of extras from warranties to paint protection. Feel free to say no to these. They will push for the extended warranty, to which you should let them know you don’t intend to keep the car that long – even if you do. It is essential you ensure the numbers in the sales contract match the agreed-upon price you agreed to earlier. Get any needed repairs, upgrades, detailing, etc in writing before signing.

Congratulations: you are now ready for your new car! Come by and show us your new car.

Entrepreneurs, Here are Business Tips You Should Know

Entrepreneurs, Here are Business Tips You Should Know

Entrepreneurs, Here are Business Tips You Should Know

1. Always ensure that you have enough money in the bank.

2. Get rid of bad employees before they do more damage.

3. Troubleshoot your own managerial style.

4. Take care of your star employees.

As an entrepreneur, its highly important for you to know the ins and outs of your business. The more concepts and strategies you are able to apply to your brand, the higher your chances for success will be.

#businesstips #bookkeepingtips #bookkeepingsantaana #bookkeepingorangecounty

President Trump Signs Taxpayer First Act to Reform the IRS

President Trump Signs Taxpayer First Act to Reform the IRS

On July 1, President Trump signed the Taxpayer First Act (H.R. 3151). This bipartisan legislation aims to modernize and improve the IRS by creating an independent office of appeals, requiring the IRS to submit to Congress a plan to redesign and restructure the agency, enhancing cybersecurity efforts, and implementing other changes to better serve taxpayers. Several provisions were supported by APA’s Government Relations Task Force through meetings with congressional staff.

Payroll Provisions

Here are some of the payroll provisions in the Taxpayer First Act.

·Lowered electronic filing threshold. The IRS currently requires electronic filing when a business files at least 250 information returns (e.g., Forms W-2 or 1099-MISC). The legislation lowers the threshold to 100 in calendar year 2021 and then to 10 thereafter.

·Internet platform for Form 1099 filing. The legislation requires the creation of an online platform for businesses to prepare and file Forms 1099. The legislation directs the IRS to develop the platform with a user interface and functionality similar to SSA’s Business Services Online and to implement it by January 1, 2023.

·Authentication of e-Services users. The legislation requires the IRS to verify individuals who apply to open an e-Services account before they can use its tools.

·Independent Office of Appeals. The law creates a new position, Chief of Appeals, who will report directly to the IRS Commissioner and oversee the Independent Office of Appeals to resolve tax controversies without litigation.

·Cybersecurity and identity protection. Referred to as “21st Century IRS,” the legislation requires the IRS to collaborate with the private sector to protect taxpayers from identity theft refund fraud.

To learn more about federal and state laws, regulations, and information to keep your company’s payroll operations in compliance, give us call at 714-400-9201 or visit our website at www.Alvareztaxinc.com

 

California to have highest gas prices in nation when new gas tax kicks in July 1

California to have highest gas prices in nation when new gas tax kicks in July 1

When the new gas tax kicks in July 1, California will have the highest gas tax in the country.

The new gas tax will add an additional 5.6 cents per gallon of gas.

Consumer Watchdog President Jaime Court argues even though the new gas tax is expected to generate more than $50 billion over the next decade for much-needed road repairs, road infrastructure and transit upgrades, consumers shouldn’t be stuck with the bill.

“I had an issue with the tax increase when it went into effect because I felt that it should be paid for by the oil refineries excessive profits,” he said.

With the state average at over $4 a gallon, motorists pay close to $1.20 more per gallon at the pump than the national average. The state energy commission reports 70 cents of that difference is attributed to tougher gas standards and environmental regulations. Court claims otherwise.

“The state of California is investigating now the high cost of gas in this state… I know what it is because I look at the oil refineries profit reports. It’s gouging. When the oil refineries are making more off California gasoline than they make anywhere in the rest of the nation, we know that that profit is gouging,” Court added.

Court said he’s working with the governor’s office to rein in oil companies providing relief for consumers at the pump.

“We are an isolated market, and we have five oil refineries that control 90% of the gasoline in this state in terms of making it, and also in Southern California, control 80% of the retail gasoline stations,” he added.

Hire Your Children This Summer: Everyone Wins

Hire Your Children This Summer: Everyone Wins

If you’re a business owner with children, hiring them for the summer can provide many benefits. One is tax savings. By shifting business income to a child as wages for services performed, you can turn your high-taxed income into tax-free or low-taxed income. You may also be able to realize payroll tax savings (depending on the child’s age and how your business is organized) and enable retirement plan contributions for the children. Everybody wins! Many rules apply. Contact us to learn more.

You may be able to:

Shift your high-taxed income into tax-free or low-taxed income,
Realize payroll tax savings (depending on the child’s age and how your business is organized), and
Enable retirement plan contributions for the children.

It must be a real job

When you hire your child, you get a business tax deduction for employee wage expenses. In turn, the deduction reduces your federal income tax bill, your self-employment tax bill (if applicable), and your state income tax bill (if applicable). However, in order for your business to deduct the wages as a business expense, the work performed by the child must be legitimate and the child’s salary must be reasonable.

For example, let’s say a business owner operates as a sole proprietor and is in the 37% tax bracket. He hires his 16-year-old son to help with office work on a full-time basis during the summer and part-time into the fall. The son earns $10,000 during 2019 and doesn’t have any other earnings.

The business owner saves $3,700 (37% of $10,000) in income taxes at no tax cost to his son, who can use his 2019 $12,200 standard deduction to completely shelter his earnings.

The family’s taxes are cut even if the son’s earnings exceed his or her standard deduction. The reason is that the unsheltered earnings will be taxed to the son beginning at a rate of 10%, instead of being taxed at his father’s higher rate.

How payroll taxes might be saved

If your business isn’t incorporated, your child’s wages are exempt from Social Security, Medicare and FUTA taxes if certain conditions are met. Your child must be under age 18 for this to apply (or under age 21 in the case of the FUTA tax exemption).

Be aware that there’s no FICA or FUTA exemption for employing a child if your business is incorporated or a partnership that includes non-parent partners.

Start saving for retirement early

Your business also may be able to provide your child with retirement benefits, depending on the type of plan you have and how it defines qualifying employees. And because your child has earnings from his or her job, he can contribute to a traditional IRA or Roth IRA. For the 2018 tax year, a working child can contribute the lesser of his or her earned income, or $6,000 to an IRA or a Roth.

Raising tax-smart children

As you can see, hiring your child can be a tax-smart idea. Be sure to keep the same records as you would for other employees to substantiate the hours worked and duties performed (such as time-sheets and job descriptions). Issue your child a Form W-2.

Frustrated with your Bookkeeping?

Frustrated with your Bookkeeping?

Alvarez Tax Service LLC provides professional, and hassle-free accounting solutions. Whether you have a complex corporate and payroll structure, or need simple bookkeeping services (or anything in-between) we are ready to work for you!

For more information, call us at (714)400-9201 or visit our website at:  www.AlvarezTaxInc.com

Bookkeeping Tip #3 – Don’t Wait Until Year End to Talk to Your Accountant

Bookkeeping Tip #3 – Don’t Wait Until Year End to Talk to Your Accountant

Make it a point to be in contact with your accountant regularly, not just at the end of the year. Doing so will make sure that any bookkeeping issue will be caught in time and will be easier to work out. Even though accounting software can enable practically anyone to monitor their business financials, having a good accountant as an advisor is valuable as they are able to give you sound opinions beyond setting up an accounting system. Your accountant should be able to help you with setting up your business from the start – creating an effective business structure, obtaining necessary permits and licenses (if required), setting up payroll, and even filing taxes.

IRS Offers Options to Help Taxpayers Who Can’t Pay

IRS Offers Options to Help Taxpayers Who Can’t Pay

If you owe the IRS but you can’t pay in full, there are options.

The agency is anticipating many taxpayers being impacted by the tax overhaul.

If you have to pay more than you expect, the IRS offers options such as paying in installments or delaying the collection.

Taxpayers that owe taxes can choose one of the payment options listed below:

  • Online Payment Agreement — Individuals who owe $50,000 or less in combined income tax, penalties and interest and businesses that owe $25,000 or less in payroll tax and have filed all tax returns may qualify for an Online Payment Agreement. Most taxpayers qualify for this option, and an agreement can usually be set up in a matter of minutes. Online applications to establish tax payment plans, like online payment agreements and installment agreements, are available Monday – Friday, 6 a.m. to 12:30 a.m.; Saturday, 6 a.m. to 10 p.m.; Sunday, 6 p.m. to midnight. All times are Eastern time.
  • Installment Agreement — Installment agreements paid by direct deposit from a bank account or a payroll deduction will help taxpayers avoid default on their agreements. It also reduces the burden of mailing payments and saves postage costs. Even taxpayers who don’t qualify for a payment agreement may still pay by installment. Certain fees apply.
  • Delaying Collection — If the IRS determines a taxpayer is unable to pay, it may delay collection until the taxpayer’s financial condition improves.
  • Offer in Compromise — Certain taxpayers qualify to settle their tax bill for less than the amount they owe by submitting an offer in compromise. To help determine eligibility, use the Offer in Compromise Pre-Qualifier tool.

For more information give us a call.