Public corporations are required by law to make certain financial documents available to the public upon request. The easiest way is to post them conveniently on the corporation’s website.
Don’t forget to complete and submit a 1099 to any individual to whom you paid $600.00 or more in a calendar year as a subcontractor, casual laborer, or in rents, commissions or interest. Business owners are responsible for collecting W-9s in order to process 1099s at the end of the year. This is an important area. Contact us with any questions.
HEALTH INSURANCE UPDATE
Beginning with tax returns filed for the year 2014, compliance with the new health care law will be achieved, in part, through the preparation and filing of income tax returns. Tax preparers will be required to report whether taxpayers have insurance and the effective date of insurance. If you do not have insurance, the federally mandated penalties will be deducted from your refund or added to your taxes owed. We anticipate tax preparation fees will increase to meet this additional reporting requirement.
For businesses, there is a very specific and rather complicated math calculation to determine whether insurance is required to be provided under the new law. Employers with 50 full time employees must provide insurance. For purposes of the calculation, part time employees may be included as full time employees. Please see us to determine whether you are considered to have 50 full time employees under this law. The penalties for failing to comply are substantial.
Helpful phone numbers: Health Care Act: 1-800-318-2596
Small Businesses: 1-800-706-7893
HOT TOPIC: STATE SALES TAX RATE INCREASE
The state sales tax rate increases to 5.75% on September 1, 2013. This is an increase of .25%. This rate does not include county sales tax.
This Business Tax Checklist is a great way to help organize your records at the end of the year–but remember, some items may not be relevent to your situation. ALWAYS track the cities/counties in which you earned income!
SPECIAL NOTE FOR SUB-S CORPORATIONS (WAGES AND WORKER’S COMPENSATION)
If you are a sub-s corporation, and actually work for the business, you are supposed to take a regular, reasonable paycheck for your services.
If you work for the business, and do not take a paycheck, you have to report on a minimum amount ($419.00 in 2013) per week to Worker’s Compensation.
All shareholders have to report this minimum unless they are completely dormant in the business.
According to the Ohio Department of Commerce, all businesses that are located and/or operate in the State of Ohio, or hold funds due to Ohio residents, must file an Annual Report of Unclaimed Funds by November 1 of each year. (The deadline for life insurance companies is May 1.) See Ohio.gov for more information.