HAEFELE FLANAGAN
CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS
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About Us
Services Tax
Tips Record Retention Career Opportunities The Buzz Save Those Receipts – New rules for
Charitable Donations It has always been a good idea to keep proper documentation of
tax deductible expenses, and now Congress has added a new motivator. New rules were added by the Pension
Protection Act of 2006 for individuals making charitable contributions in tax
years beginning with 2007. Any
taxpayer claiming such deductions must now be prepared to prove that the contributions
were actually made, in the amounts claimed on the tax return. <read more> Caution:
Beware of the Kiddie Tax! The Small Business and Work Opportunity Tax Act of 2007 (2007 Small
Business Act) includes a provision that raises the "kiddie tax" age
from under 18 to under 19 (or under age 24, for students) after 2007. <read more> Social Security Administration Issues
Incorrect 1099’s The Social Security Administration has informed the IRS that 2.5
million SSA 1099’s were issued in error and that corrected forms are
scheduled to be issued the week of January 25, 2008. Increased Password Complexity for EFTPS As an additional
security measure, EFTPS online will increase the complexity of passwords
beginning February 7, 2008. Passwords must be 8 to 12 characters long,
composed of the following character types: ·
Uppercase Alpha (A, B, C, etc.) ·
Lowercase Alpha (a, b, c, etc) ·
Numeric (1,2,3, etc) or the following Special Characters
(!, @, #, $, *, +, -). Each password must
contain UPPERCASE AND LOWERCASE ALPHA CHARACTERS at least one character that
is either a numeric or a Special Character. For more information go to www.eftps.com New Federal Wage Posting Requirements Effective July 24,
2007, the Department of Labor requires all employers, regardless of size to post
the most recent Minimum Wage poster, even if your state's minimum wage
differs. Find more information and a copy of the poster at www.dol.gov/elaws/posters.htm
Increase in Federal Minimum Wage On May 25, President Bush signed a spending bill that, among other things, amended the Fair Labor Standards Act (FLSA) to increase the federal minimum wage in three steps: to $5.85 per hour effective July 24, 2007, $6.55 per hour effective July 24, 2008 and $7.25 per hour effective July 24, 2009.
In January, the Pennsylvania Department of Revenue mailed incorrect Forms 1099-G and 1099-INT that contained information for PA refunds and PA interest paid in 2005, rather than 2006. Corrected 1099-G and 1099-INT forms will be mailed by February 9, 2007
Pension Protection Act of 2006 This significant tax legislation was signed into law by the President on August 17, 2006. The new law is designed to not only strengthen traditional defined benefit pension plans, but also improve and extend many retirement plans, provided by IRA's, 401(k) and other defined contribution plans. click here for the full story.
President Bush Signs $70 Billion Tax Relief Reconciliation Bill The Tax Increase Prevention and Reconciliation Act (Tax Reconciliation Act), signed into law on 5/18/06, provide benefits to business, investors, and middle-class alternative minimum tax relief. click here for details.
Federal Posting Notice For All Employers For more information about the Uniformed Services Employment and Reemployment Act (USERRA) Notification Requirement click here
Changes in filing New Jersey Annual Report for corporations, limited liability companies, limited liability partnerships and limited partners click here for more info
Important Information for S Corporations Beginning in late 2005, the IRS will introduce a study to evaluate the reporting compliance of S corporations. click here for details.
Increase in Effective October 1, 2005, the hourly minimum wage is $6.15 per hour. The next increase will be effective on October 1, 2006, when it will be raised to $7.15 per hour - click here for details.
Flexible Spending Accounts IRS extends use it or lose it deadline for Employees' Flexible Spending Accounts - click here for details
Qualified Retirement Plan Alert Employers who sponsor qualified retirement plans, such as 401(k) or profit sharing plans, should be aware of a new requirement concerning automatic distribution of account balances click here to learn more
New Banking Legislation Alert Congress passed the Check 21 Act, allowing banks to transfer funds using electronic facsimiles of checks. To learn more about the Check 21 Act - click here
The American Jobs Creation Act of 2004 President Bush has signed the American Jobs Creation Act. To find out how it affects you - click here
To find out about tax changes in
Governor Jim McGreevey approves decoupling NOL Changes - click here to find out more
U.S.
Supreme Court Allows IRS to Use Aggregate Method to Determine FICA Tax
Liability on Tip Income As a result of a recent United States Supreme Court case, many
employers who include income from tips in their FICA tax calculation may be
significantly understating their FICA tax liability. For the full story click here |
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