Professional Accounting Solutions

If you are required to deposit payroll taxes monthly, deposit payroll tax liabilities for November 2021 on or before December 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. Deposit Requirements: Before the beginning of each calendar year, you must determine which of the two deposit schedules you are required to use. There are two deposits schedules as listed below: - 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/2021/12/01/employer-monthly-schedule-depositor-payroll-tax-deposit-due-december-15-2021/

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/