Greater Pittsburgh Padgett Business Services Image

Small Business

New Economic Stimulus Package

February 12, 2008

Here is some (easy to understand) IRS guidance on the Stimulus Package The Administration and Congress have agreed to an economic growth package that would provide advance payments to many Americans. More details will be available soon, but here are some highlights: Starting in May, the Treasury will begin sending stimulus payments to more than [...]

Read the full article β†’

Congress passes economic stimulus package — President eager to sign

February 8, 2008

By a vote of 81 to 16, the Senate approved H.R. 5140, the “Economic Stimulus Act of 2008” (the Stimulus Act) as passed by the House of Representatives, with an amendment that makes the rebate available to more Americans. More specifically, the agreement extends the stimulus rebate to Americans whose income consists only of Social [...]

Read the full article β†’

Our free software rules!

January 27, 2008

Number 46 on “101 Great Ideas to Start Your Business” from Entrepreneur Magazine: 46. Find Simple Accounting Software: Padgett Connect is an accounting software program from Padgett Business Services geared toward the average user who doesn’t have in-depth knowledge of accounting. It’s customized by Padgett for each client’s business, and user support is free. The [...]

Read the full article β†’

New I-9 Form Issued

January 19, 2008

The USCIS announced on November 7, 2007, that a new Form I-9 and a revised version of the “Handbook for Employers, Instructions for Completing the Form I-9″ are now available. The significant revision to the Form I-9 is the removal of several “List A” documents which previously could be used for proof of both identity [...]

Read the full article β†’

I couldn’t agree more

January 3, 2008

Great post from a the freelance programming blog, Freelance Switch: This expresses my accounting philosophy perfectly. I just wish I had written it. Here are some basic accounting steps for a freelancer: Step 1 – You need a system to bill people.There are tons of invoicing tools online, (BlinkSale, FreshBooks). Most have free accounts for [...]

Read the full article β†’

Turning your Friends and Neighbors against you!

December 23, 2007

Here is a press release that I just got form the IRS. It reinforces how not taking care of your taxes can really ruin things. Now they are encouraging “informants”. That’s right, they want your friends and neighbors to tell them when you don’t pay your taxes. They offer rewards for this. This is why [...]

Read the full article β†’

Tax Preparation Fees Still Affordable

December 21, 2007

This press release was on the National Society of Accountants (NSA) website. This might give Small Business Owners some idea of what to expect this year. Since I imagine most Small Business Owners do not belong to the NSA, I will reprint the information here. Tax Preparation Fees Still Affordable, Says National Society of Accountants [...]

Read the full article β†’

Changing entities?

December 19, 2007

The end of the year is a good time to consider making a tax entity change. If you’re thinking of switching, the first person you should talk to is your Padgett Representative to find out if changing makes sense for your business and to discuss the potential tax consequences. Some changes have few or no [...]

Read the full article β†’

Gambling Losses

December 19, 2007

Gambling losses are deductible against gambling winnings, but not directly. Although the full amount of the winnings is reported on Form 1040, losses are deductible as an itemized deduction on Schedule A. So if you don’t have enough deductions to itemize, the gambling losses won’t do you any good. Even if you can itemize, your [...]

Read the full article β†’

Substantiating Charitable Contributions

December 19, 2007

In order to substantiate a charitable contribution, a taxpayer must maintain one of the following: A canceled check A receipt or letter from the donee charitable organization showing: the name of the donee the date the amount of the contribution Other reliable records showing: the name of the donee the date the amount of the [...]

Read the full article β†’

Employee vs. Independent Contractor: 3 Categories of Evidence

December 14, 2007

I have conversations every week with Small Business Owners who have coped with this issue, so I thought that I comprehensive blog post was in order. A new approach with respect to worker classification has been adopted by the IRS. Rather than using the IRS’s 20 Factors, the approach now is to group items of [...]

Read the full article β†’

Bean Counters make the world go ’round

December 5, 2007

This is the kind of stuff that gets me. As a Small Business Owner, when I read something like this I think “give me a break….don’t you have anything better to do?” But, as I stop and think about it, I realize that the distinction being examined here is important and potentially expensive. This must [...]

Read the full article β†’

Making Taxes less Taxing

November 25, 2007

You know, doing your taxes wouldn’t be so bad if it wasn’t just like, well….doing your taxes. Taxes are one of the more important and complex aspects of owning and operating a successful business. Many businesses pay a mixture of local, state, and federal taxes. Although you may not think you have to pay much [...]

Read the full article β†’

Before You Sell

November 18, 2007

If you are considering selling your business or any significant asset, check with me before signing. While there are several reasons to consider doing this, one of the most important is tax liability – you may end up owing more in taxes than you think. In some cases, due to taxes and outstanding debts, you [...]

Read the full article β†’

Reimbursing Independent Contractors

November 18, 2007

Whether or not an independent contractor is separately reimbursed for his/her expenses depends on industry practice and the agreement between you and the contractor. If you simply cut the contractor a check based on a line on his/her bill, it’s taxable income to the contractor (and reportable on his/her 1099) and he/she will have to [...]

Read the full article β†’

← Previous Entries

Next Entries →