Professional Accounting Solutions

The American Rescue Plan Act of 2021 significantly changes the reporting threshold associated with Form 1099-K. This change will substantially increase the number of Forms 1099-K required to be filed with the IRS and furnished to recipients by third-party settlement organizations (TPSOs) and their electronic payment facilitators (EPFs). Modified Reporting Threshold Prior to the update, the IRS required the payment settlement entity (PSE) to report all payment transactions if the total of such transactions exceeded $20,000 and the aggregate number of such transactions exceeds 200 per customer. Now, this new update means that all payment settlement entities are required to file a 1099-K and send a copy of the form to the IRS and to the customer for processing transactions amounting to $600 or more in a calendar year with no minimum transaction requirement. Who is Required to File a 1099-K form? Every PSE or other party which submits instructions to transfer funds to the account o...

2021 Tax deduction for qualify business use of vehicles Generally, you can claim vehicle deductions as a business owner or self-employed taxpayer. If you own a business or are self-employed and use a vehicle for business, you may deduct car expenses on your corporate tax return. If a taxpayer uses the car for both business and personal purposes, the expenses must be split. The deduction is based on the portion of mileage used for business. You may deduct vehicle expenses in one of two ways. 1. Actual expenses These include: - a. Depreciation - b. Lease payments - c. Gas and oil - d. Tires - e. Repairs and tune-ups - f. Insurance - g. Registration fees Your deduction for actual expenses is based on the percentage of business use. If for example you use your car 80% for business and drive it 20% personally, you may write off 80% of your qualified expenses. 2. Standard mileage rate Taxpayers who want to use the standard mileage rate for a car they own must choose to use this...

Hiring an accounting firm will be an ideal solution for small businesses and startups. In 2021, there are about 400 million small and medium-sized businesses in the world, and accounting forms their backbone. Managing your business finances requires a fundamental understanding of numbers, budgeting, forecasting, tax planning, and risk management for best financial performance. While many have understood this game and play it correctly from the start, for example, Warren Buffet, most of us are too caught up in our day-to-day challenges to even understand the complexities of numbers. And if you are the founder of your startup or run a small business, it can be intimidating to deal with numbers day in and day out, particularly when your focus should go into working on upcoming projects and growing your business. Doing your business finances, yourself could definitely save some money in the short term but outsourcing your accounting tasks can undoubtedly bring not just the financial expert...

We understand how caught up you may feel while running an e-commerce business. You will have to live on the pinnacle of your transactions, inventory, administrative fees, and what’s not. We know that due to so much work pressure and being occupied among these tasks, your accounting and bookkeeping responsibilities must have taken a back seat. But remember that these low priority tasks are most important and they will come back to create a nightmare sooner or later. Managing your personal books may also appear like a cost-saving strategy, however, many online traders lack the time or know how to live updated and in compliance. Moreover, any e-commerce business needs dedicated attention of an eCommerce accountant. In this article, we’ll display how you can collaborate with an accountant that has a specialization in e-commerce so that they can assist you in growing and managing your ecommerce enterprise. How to find the Right eCommerce Accountant Here’s what you need to remember when you’...

Whether you’re just considering a new business idea or already act as a sole proprietorship, incorporating a business is a good decision. There are several benefits to incorporating your business, all of which you should fully understand before you decide what’s best for your business. Following are some of the must relevant benefits of incorporating your business. - Asset Protection Through Limited Liability - Creation of Corporate Identity - Perpetual Life for the Business - Transferability of Ownership - Ability to Build Credit and Raise Capital - Optimizing Your Income and Taxes - Retirement funds and qualified plans, like a 401(k) https://pasfirm.com/2021/11/02/incorporation-is-a-big-milestone-for-your-business/

Corporations must generally make estimated tax payments if they expect their estimate tax to be $500 or more. Fourth installment payment of your 2021 estimated taxes is due by December 15th, 2021 . A worksheet, Form 1120-W is available to help you estimate your tax for the year. Some corporations are required to electronically deposit taxes, this includes estimated tax payments. You can make electronic funds transfer by using the Electronic Federal Tax Payment System (EFTPS). However, if the corporation does not have an EFTPS account with the IRS, you can arrange payments through a third-party provider. https://pasfirm.com/2021/11/01/corporate-taxpayer-estimated-tax-payment-due-december-15-2021/

Get ready for your W2 & 1099 forms reporting requirement Businesses must prepare tax reporting forms as part of their tax filing obligations. Generally, W-2 forms are used for part-time or full-time workers, Form 1099-NEC is used for contractors and other non-employees. W-2 and 1099-NEC forms must be filed by January 31, 2022 . The same deadline applies for completing both W-3 and 1096 forms to the appropriate government agency. There are penalties on companies that issue W2 and 1099s forms late. Must taxpayers do not like receiving IRS forms 1099. Businesses may not like sending them out.  Generally, business must issue the forms to any payee (other than a corporation) who receives $600 or more during the year. As the Year-End approaches, good preparation now can help business avoid problems later. Review payments you have made during the year and verify you have completed information for all payees for whom you will be required to file a 1099. Information that should be gat...

Sales & Use Taxes Deadline November 19th, 2021 If you electronically file and/or pay sales tax with the Florida Department of Revenue, you must complete the initiation of your September, 2021 reporting period payment on or before 5:00PM, Eastern Time, on Friday, November 19, 2021 , to ensure you pay on time. Late returns and payments may be subject to a late penalty of 10 percent of the amount of tax owed, but not less than $50.00, maybe charge. The $50.00 minimum penalty applies to all returns filing late, even if no tax was due. In addition, interest may also be charged on late payments. https://pasfirm.com/2021/11/01/sales-use-taxes-deadline-november-19th-2021/

Employer Monthly Schedule Depositor – Payroll Tax Deposit Due November 15, 2021 If you are required to deposit payroll taxes monthly, deposit payroll tax liabilities for October 2021 on or before November 15, 2021 . The payroll process includes: - Calculating and preparing paychecks - Accounting for amounts withheld from these paychecks - Making deposits of taxes withheld from paychecks - Reporting on taxes withheld and deposits made. - Semi-weekly schedules are for the largest employers. - Monthly schedules are used by the majority of employers. Payroll taxes must be deposited with the government in a timely manner. If you fail to make a timely deposit, you may be subject to a failure-to-deposit penalty of up to 15 percent. https://pasfirm.com/2021/11/01/employer-monthly-schedule-depositor-payroll-tax-deposit-due-november-15-2021/