QuickBooks Pro Advisor has a lot to offer. If you need an example of an engagement letter you can log into your Pro Advisor center and click the resource tab. Once you are on that tab, under the Growing Your Practice Section there are a set of six sample engagement letters that you can download.
2016 Payroll rates and bases are the same as 2015:
- Social Security wage limit $118,500
- Medicare wages are unlimited at 1.45%
- If your wages are over $200,000.00 withhold additional .9% medicare tax
- FUTA rate is 6% on $7,000 Wage Base
- Business mileage rates down in 2016 to $.54 compared to $.57.5 in 2015
- relocation and medical miles are $.19
- Charitable rate miles $.14
- 401K limits for 2016 is $18,000 and if over age 50 you can take an additional $6,000
Maryland Tax Amnesty begins September 1, 2015 and ends on October 30, 2015. Taxpayers who submit and application may pay their tax obligation in full or include 10% of the amount owed with the application to set up a payment plan. Taxpayers that choose the payment plan must have their tax obligations paid in full by December 31, 2016. During the amnesty period a taxpayer may not be charged with criminal tax offense as long as the tax is paid during this period. Those that participated in the 2001 and 2009 amnesty are not eligible for the 2015 amnesty program. This opportunity is given to tax delinquents to do the right thing and pay their taxes. To get more information or have more questions call 1-800-MDTAXES.
In business, a profit is the money a business earns after accounting for all the expenses. We all know a profit is a good thing and a negative profit (Loss) is bad. In our minds when we see a profit on our financials we believe that amount should be reflected in the checking account. Then realty hits and you realize there is no money in the checking account.
Always remember that profit is not cash and does not reflect what you have in the bank. The income statement reflects the movement of income and expenses for the business within a given period. The net difference is either your profit or loss which is reflected at the bottom of the income statement.
Now let’s take loan payments and how they affect your profit or loss. When you have an outstanding loan the principal is reflected on the balance sheet. The only deduction that a business owner can take from that loan is the interest paid that year. You need to use your cash from the checking account to pay for the loan, but receive a small benefit from the deduction of the interest only portion to the business.