As the year draws to a close, it’s important that you review your business’s income for 2015 to project your estimated tax liability for the year and see if there are steps that can be taken to minimize that liability. This is also the time to make sure your books are in order and to make adjustments, such as updating your inventory balance. We can help you decide what, if any, opportunities exist to either accelerate expenses or postpone income to maximize your tax benefit.
There are a number of tax breaks that are set to expire this year unless Congress works together to extend these tax breaks which seems likely at this time. However, the focus should not be entirely on tax savings, but rather on whether or not an action otherwise makes good financial sense for your business. At this point, we don’t know which way Congress will go, but we’ll keep you posted as we find out more.
FICA Max in 2016
The Social Security Administration has announced that the 2016 wage base for computing the Social Security 6.2% tax (OASDI) remains at $118,500. This means maximum FICA withholding for 2016 will be $7,347.
Important Deadlines (Note: Some have changed AGAIN!)
Sales Tax Filing:
Legislation passed in 2015 changes the due date for filing and paying Connecticut sales and use tax to the last day of the month.
There are deadlines for initiating the plans. Businesses must have set up a 401(k) plan by December 31, 2015 to qualify for 2015 contributions. You have until filing extension deadlines (April 15th and October 15th, for example) to contribute.
**New this year**
1099s and W2s are due to employees/contractors on or before February 1, 2016.
Transmittals are due on or before February 1, 2016.
If you need our assistance with annual filings including 1099s, W-2s, Sales Tax, and annual payroll reports contact us before January 1, 2015 to have the work scheduled.
Please call MJW EA & Company LLC at your convenience so we can set up an appointment to estimate your business’s tax liability for the year, review policies surrounding the acquisition and disposition of fixed assets, discuss options for reducing your business’s taxes for 2015, and to address any questions you may have. Private meetings are available by request.
Thank you for another great year!