Archive for the ‘Tax Articles’ Category

Confused about reporting the cost of health insurance coverage for employees? Starting in tax year 2011, the Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan. Fortunately for many small businesses, employers filing fewer than 250 Forms W-2 are exempt from this requirement.

Be sure to review payments subject to be reported on Form 1099-Misc. Beginning with the 2011 tax year, the IRS requires you to exclude from Form 1099-MISC any payments you made by credit card, debit card, gift card, or third-party payment network such as PayPal. (These payments are being reported by the card issuers and third-party payment networks on Form 1099-K.)

The Internal Revenue Service issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

The expiration of the Federal Unemployment Tax Act (FUTA) surtax in June 2011 means you’ll see some changes on the 2011 Form 940 when you file it in January. In addition, there are 21 states subject to FUTA credit reduction. The IRS has posted Form 940 and Schedule A (Form 940) for 2011 so you can see the changes.

The Texas Supreme Court ruled that the franchise tax does not impose a tax on a natural person’s share of partnership income, without voter approval, in violation of Article VIII, §8 (Bullock Amendment) of the Texas Constitution.