Payroll News : Lawmakers in showdown over payroll tax cuts

Despite public confidence in the U.S. Congress plunging to record lows, Democrats and Republicans have shown little inclination to end the political brinkmanship that has gridlocked Congress and alarmed investors.

Furthermore Republicans have been split over extending the payroll tax cut, with many rank-and-file members skeptical that it has created jobs. Republican leaders, however, fear a backlash from voters in 2012 if the tax cut is allowed to expire.

Additional FYI: Without an extension, the payroll tax would revert to 6.2 percent from its current rate of 4.2 percent, resulting in an average increase of $1,000 per family for 160 million Americans.

Payroll Taxes and Your Business

Many small businesses fall behind
in paying taxes at some
point during their existence.

Payroll taxes are all taxes that are collected, by federal, state, and local governments, based on salaries and wages paid to employees. These taxes must be withheld from wages by all businesses that have employees. These taxes are remitted on a monthly or semi-weekly basis, depending on the quantity owed. Businesses are also required to make regularly scheduled reports to the Internal Revenue Service (IRS) and to state and local taxing agencies about the amount of taxes owed and paid. Businesses are not required to withhold payroll taxes on wages paid to independent contractors. Self-employed persons are responsible for paying their own payroll or income taxes directly to the appropriate taxing entity.

Many small businesses fall behind in paying these taxes or filing the associated reports at some time during their existence. Such an error is, however, very costly because significant interest and penalties apply for late payment or nonpayment of payroll taxes. In fact, the Trust Fund Recovery Penalty allows the IRS to hold a small business owner or accountant personally liable for 100 percent of the amount owed, even in cases where the business has gone bankrupt.

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Business Taxes 
Tax Withholding 
Electronic Tax Filing
Tax Preparation Software

Purchasing QuickBooks
products through
GBC, will qualify for an
significant discount.

GBC Offers Quickbooks Support

We offer QuickBooks support and consulting at various levels for clients who want to use QuickBooks. We start by assisting clients in determining the QuickBooks edition that serves their financial recordkeeping and operations best.

Purchasing QuickBooks through GBC Services, clients can realize discounts of up to 50%.

READ MORE AT GBC

Jobs Plan Includes Tax Breaks for Small Firms

Tax breaks account for $253 billion
of the president's package.

President Barack Obama outlined a $447 billion jobs plan Thursday night that would reduce payroll taxes for workers and small businesses.

The plan also would eliminate payroll taxes for businesses that hire additional employees or increase wages for current workers. The president also wants to give a $4,000 tax credit to businesses that hire workers who have been unemployed for six months or more.

 The plan, delivered to a joint session of Congress, also calls for extending into 2012 a current tax break that allows small businesses to immediately write off 100 percent of their investments in new equipment. The president also wants to give a tax break to businesses that hire unemployed veterans.

READ MORE: Obama's Job Plan Includes Tax breaks for Small Firms

GBC Services can help you
organize tax information
including federal and state tax.

GBC Services in Atlanta Georgia can supply you with online payroll processing and help you organize tax information including the filing of tax returns, both state and federal.

Our expansive payroll services also include new hire and workers compensation reporting, customized payroll reports and time sheet submission via phone, fax or email. GBC Services in Atlanta can also set up a time clock interface as well as direct deposit to help you keep track of employee itineraries and payment. READ MORE: GBC Payroll Services

What Small Business Needs Should Accounting Services Meet?

A high-quality accounting firm
will address the concerns of
your company.

There are many consulting firms that promise comprehensive Atlanta accounting services, but not all are the same. Indeed, if you are in the market for someone to take care of the tax and payroll aspects of your business, it pays to investigate the company you decide to work with.

Think about it. Anyone handling your company's finances is handling the life-blood of your business. Would you hand that responsibility over to just anyone?

Selecting the right accounting solutions in Atlanta, Georgia, may seem a bit challenging at first...

READ MORE GBC Tax Services Website
For All Your Accounting Needs Call GBC 678-366-9232

The Joys of Parental Tax Benefits

OK. Tax credits for parents don't scratch the surface of how much it costs to raise a child, but every penny helps. Besides, the joy of watching a child grow into a fulfilled and wholesome person is priceless. So parents, while you have a moment to yourself, consider the following tax benefits as a government supplement to various costs at various stages of your child's life:

1. Dependents

In most cases, a child can be claimed as a dependent in the year they were born.

2. Child Tax Credit

You may be able to take this credit on your tax return for each of your children under age 17. If you do not benefit from the full amount of the Child Tax Credit, you may be eligible for the Additional Child Tax Credit.

3. Child and Dependent Care Credit

You may be able to claim the credit if you pay someone to care for your child under age 13 so that you can work or look for work.

4. Earned Income Tax Credit

The EITC is a benefit for certain people who work and have earned income from wages, self-employment or farming. EITC reduces the amount of tax you owe and may also give you a refund.

5. Adoption Credit

You may be able to take a tax credit for qualifying expenses paid to adopt an eligible child. Taxpayers claiming the adoption credit must file a paper tax return because adoption-related documentation must be included.

6. Children with Earned Income

If your child has income earned from working they may be required to file a tax return.

7. Children with Investment Income

Under certain circumstances a child’s investment income may be taxed at the parent’s tax rate.

8. Higher Education Credits

Education tax credits can help offset the costs of education. The American Opportunity and the Lifetime Learning Credit are education credits that reduce your federal income tax dollar-for-dollar, unlike a deduction, which reduces your taxable income.

9. Student Loan Interest

You may be able to deduct interest you pay on a qualified student loan. The deduction is claimed as an adjustment to income so you do not need to itemize your deductions.

10. Self-employed Health Insurance Deduction

If you were self-employed and paid for health insurance, you may be able to deduct any premiums you paid for coverage after March 29, 2010, for any child of yours who was under age 27 at the end of 2010, even if the child was not your dependent.

For more information, visit our website: http://www.gbctax.com/income_tax_services.asp