In observance of the Thanksgiving holiday, our office will be closed Thursday, November 22nd, 2018.
We will reopen Friday for our normally scheduled business hours. Have a safe and happy holiday!
If you plan to give your employees a Christmas bonus, be sure you know the tax implications for both your business and your employees before writing out those checks.
First, you must remember that bonuses are taxable income, and you must withhold state and federal taxes, Medicare, Social Security and unemployment. Second, you as the employer have to treat the check as a paycheck.
It is not uncommon for employees to want more of their bonus up front; you can offer them the opportunity to update their Form W4 for that specific paycheck and then revert back to their original withholding for subsequent checks. They will still pay taxes on the income.
As long as the proper tax laws are adhered to, bonuses are tax deductible. If you have or expect to make a profit this year, giving your employees a bonus is advisable before the end of the year. It’s a deduction for you and it reminds your employees that you appreciate their yearlong effort.
One of the truly sinister aspects of identity theft is that you can never know when the theft occurred or from what source. Protecting yourself before the theft happens is ideal and the steps below can be modified to be preemptive strikes against potential defrauding. If the theft has already occurred, the steps below lay the groundwork to getting through the process as effectively as possible.
If your business is a victim of business ID theft, you need to take quick actions to minimize the damage and stop thieves from devastating your business. Every case is different, so not every action listed here may apply to your situation. Some states have specific reporting procedures, so be certain to also review the resources for your state or territory.
Protect Your Business Credit. You will have to request copies of your business credit reports and review them for accuracy and suspicious activity. If any is found, contact the credit bureau’s fraud department. You may also consider requesting a fraud alert be placed on your business credit file.
Protect Yourself and Your Personal Credit. Request copies of your personal credit reports and review them for accuracy and suspicious activity. Companies such as Credit Karma will alert you to suspected fraudulent activity. You might also consider placing a fraud alert or a credit security freeze on your personal credit file to help prevent thieves from opening new credit accounts in your name or using you as a guarantor for new business accounts.
Be organized and keep accurate and detailed records. Document all of your contacts with each organization, and take careful notes of each conversation. Capture the date and time, name and title of the person you spoke with, their department, telephone number and direct extension, and employee number (if applicable).
Follow up promptly and frequently. Ensure that the organizations have received all of the information they have requested, and that any actions that were supposed to be taken have been completed (by both the organization and yourself). Do not rely on verbal promises of action. Be cognizant of dates and deadlines – your rights and liability protections can be negatively impacted by missed deadlines.
Obtain a Letter of Clearance and keep all of your records. Each time an account or fraudulent transaction(s) has been resolved, and you and your business have been absolved of the debt, request a letter of clearance from the organization to formally document this fact, in writing. Without it, you may find yourself fighting the battle again in the future if the organization is acquired by another company or sells its debt, or through old-fashioned human error. Don’t throw your notes and records away – keep them in a safe place because you may need them again.
You will get through this!
Personal Property Declarations must be filed with your Town’s Assessor by November 1st, 2018. Not sure if you are subject to this deadline? If you are a business owner who has any tangible personal property used in a business, then you must file this form with your town of business. Examples of “tangible personal property” would include, but not be limited to, computers, office furniture, equipment and signage. This does not include registered automobiles, trailers, boats and airplanes. If you have not received your form in the mail, you should obtain the Personal Property Declaration forms at your Town Assessor’s Office.
If we complete this form for you, we would ask that you have the form to us as soon as possible in order to ensure timely filing. There are hefty penalties associated with late filing – an estimated assessment plus a 25% penalty. Also, please be sure to provide a list of any assets purchased or disposed of during the period of October 1st, 2017 to September 30th, 2018, including description, date acquired and/or disposed and purchase price. If this is the first year we are preparing this form for you, we need your prior year form as well.
If you prepare this form yourself and have questions, we are always here to help!
Generally, we send accounting and tax updates. But, this seems important enough to pass it along. A good friend of ours at MJW EA & Company, Attorney Michael Sweeney, brought to our attention something extremely important if you have children:
If you do not have legal guardians named for your children and something happens to you, a judge will decide who raises your kids. There are steps you can take to make sure they will never be raised by anyone you wouldn’t want raising them. It is important that you have a will but, in the interim you can go to Kids Protection Plan for some guidance.
This is an emotional decision. Choose the best legal guardians for your children.
Shockingly, less than one-third of Americans have a plan in place for their young children if something tragic were to happen.
Take action today!
We look forward to working with you!
Hours of Operation:
Our hours are:
Monday through Thursday, 9am-5pm
Fridays 9am-4pm with extended hours by appointment.
We are located at 206-A Boston Post Road, Madison, CT 06443.