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CONGRESS PASSES TEMPORARY PAYROLL TAX CUT EXTENSION Dateline: December 23, 2011
At the eleventh hour, Congress approved a two-month extension of the employee-side payroll tax cut in the Temporary Payroll Tax Cut Continuation Act of 2011. The two-month extension, for January and February 2012, is intended to give lawmakers additional time to negotiate a full-year extension of the payroll tax cut through the end of 2012. Click here to read more.
PENNSYLVANIA CHANGES TO LOCAL EARNED INCOME TAX (EIT) COLLECTION Dateline: November 2011
Reforms to Pennsylvania's local Earned Income Tax (EIT) collection system affect Pennsylvania employers and may bring some additional revenue to local school districts and municipalities. Act 32, signed into law in 2008 with an effective date of January 1, 2012, streamlines tax collection by using standardized forms and definitions and consolidating EIT tax collectors. Click here to read more.
PENNSYLVANIA DEPARTMENT OF REVENUE REMINDS INTERNET SHOPPERS TO PAY USE TAX Dateline: November 2011
From Pennsylvania Department of Revenue Secretary Dan Meuser: "Many online retailers do not collect sales tax, and some even falsely advertise that products can be purchased online tax-free. When sales tax isn't collected by the seller on a taxable item or service, it becomes the purchaser's responsibility - by law - to report and remit use tax." Beginning with tax year 2011, Pennsylvania is simplifying the use tax reporting and payment process by adding a use tax line to the PA-40. Click here to read the full press release from the PA Revenue Department.
HEALTH CARE COVERAGE NOW REPORTED ON YOUR 2011 W-2s IS NOT TAXABLE Dateline: December 2011
The Affordable Care Act indicates that employers are now required to report the cost of employer-sponsored group health plan coverage on the Form W-2, Wage and Tax Statement. This new reporting requirement is for information only, to inform you about the cost of your health coverage. It does not mean that your employer-provided health care coverage is now subject to tax. Click here to read more.
METHODS FOR FIGURING THE DEDUCTION OF YOUR BUSINESS DRIVING COSTS Dateline: December 2011 If you drive your personal car or truck for business, be sure to know the rules for 2011 so you can maximize your tax deduction for the cost of this driving. Click here to read more. 2011 TAX PLANNING GUIDE ONLINE Dateline: January 2011
Click on the icon below to access the 2011 Tax Planning Guide online:
The Tax Planning Guide will provide you with valuable insights into how a little advance planning can help minimize your tax burden come April 15. If you have questions regarding anything contained in the Tax Planning Guide, contact your accountant directly, or call us at 215.997.5600.
1099 REPORTING REQUIREMENT REPEALED Dateline: April 2011 President Obama signed into law a repeal of the expanded Form 1099 reporting requirements applicable to corporations and landlords. Click here to read more. PENNSYLVANIA SALES TAX FILING FREQUENCY CHANGE Dateline June 2011
Effective June 1, 2011, businesses that reported sales, use and hotel occupancy tax of $25,000 or more - or if no return was filed, the tax that should have been reported was $25,000 or more - for the third quarter of 2010, are now required to file returns and remit payments on a semi-monthly basis, pursuant to Act 48 of 2009. The department is requesting the first pre-payment on June 20, 2011. Click here to read more.
TAX RELIEF, UNEMPLOYMENT INSURANCE REAUTHORIZATION AND JOB CREATION ACT OF 2010 Dateline: December 2010
After weeks of intense negotiations between the White House and Congressional leaders, Congress passed and President Obama signed into law a two-year extension of soon-to-have-expired Bush-era tax cuts, including extension of current individual tax rates and capital gains/dividend tax rates. The new law is, however, much more than just an extension of existing tax rates. The new law also provides a temporary across-the-board payroll tax cut for wage earners, a retroactive AMT "patch," estate tax relief, education and energy incentives and many valuable incentives for businesses, including 100 percent bonus depreciation and extension of many temporary tax breaks. Click here to read more.
2010 SMALL BUSINESS JOBS ACT SUMMARY Dateline: December 2010
Congress passed a small business jobs bill (the Small Business Jobs Act of 2010) with valuable individual and business tax incentives. Many of the $12 billion tax incentives are temporary so taxpayers have only a short window in which to take advantage of them. Others are permanent but require careful planning to maximize your tax benefits. Click here to read more.
IMPORTANT NOTE REGARDING MANDATORY E-FILING OF INDIVIDUAL INCOME TAX RETURNS Dateline: December 2010
Due to an e-file requirement for paid tax return preparers approved by Congress in 2009, beginning January 1, 2011, Dunlap & Associates, P.C. - as a paid tax return preparer - is required to file all income tax returns for individuals, trusts and estates, electronically. The e-file requirement, however, only applies if the firm is filing the return on behalf of the client. It does not apply to an individual tax return when the client chooses to have the return completed in paper format and the client, not the firm, will file the paper return with the IRS. The ultimate goal of the IRS is eventually phasing out paper returns altogether and having all returns filed electronically. Last year, two of every three individual tax returns were transmitted through IRS e-file.
PROTECT YOUR BUSINESS NAME PENNSYLVANIA DECENNIAL FILING DUE THIS YEAR (2011) Dateline: January 2011 The Pennsylvania Decennial Filing or Report is a report of an entity’s continued existence or use of certain marks. Decennial filings are made every ten years during the years ending with the numeral “1” (i.e., “2011”). All domestic and foreign profit and nonprofit corporations, limited liability companies, limited partnerships, limited liability partnerships that are not also limited partnerships, business trusts, insignias and “marks used with articles and supplies” that have not made a new or amended filing with the Corporation Bureau from January 1, 2002 through December 31, 2011 are required to file the Decennial Report with the DOS in order to keep their business names or mark. Click here to read more. TWO CHANGES AFFECTING PAYROLL DEPOSITS AND FILING FOR 2011: Dateline: December 2010
Federal Payroll Tax Deposits. Beginning January 1, 2011, if you are currently making your Federal payroll tax deposit by taking it to an authorized bank, you will no longer be able to use a paper coupon. You must make your deposits online using the Electronic Federal Tax Payment System (EFTPS) or by telephone.
IMPORTANT UPDATE re: Pennsylvania Unemployment Compensation Tax Filing: MANDATORY ELECTRONIC FILING DELAYED. Dateline: February 2011 Because the new Unemployment Compensation Management System, or UCMS, is not yet available, employers and employer representatives should continue to file quarterly reports - including reports for the quarter ending March 31, 2011 - using magnetic media or e-TIDES at www.etides.state.pa.us until further notice. All employers and their representatives will be notified when the new UCMS becomes available. At that time, paper forms will be phased out. |
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2012 MILEAGE RATES
Effective January 1,
2012 Beginning January 1, 2012, the Standard Mileage Rates are revised as follows:
2012 SOCIAL SECURITY UPDATE Effective January 1, 2012
The maximum taxable wage base for Social Security for 2012 will rise to $110,100 from $106,800. As such, the maximum tax will increase by $204.60 to $6,826.20. Monthly Social Security benefits will increase 3.6 percent, increasing the average monthly benefit to $1,229 from $1,186. For retirees under full retirement age, the retirement earnings test exempt amount will rise to $14,640 from $14,160. For every $2 of earnings above this limit, $1 of benefits will be withheld.
2012 PHILADELPHIA WAGE TAX RATE Effective January 1, 2012 through June 30, 2012
The Philadelphia Revenue Department announced the following wage/earnings tax rates for the first half of 2012. Specifically, the tax rate for January 1, 2012 through June 30, 2012 is:
Residents............3.928% Nonresidents.......3.4985%
CONSTRUCTION WORKPLACE MISCLASSIFICATION ACT MEANS CRIMINAL PENALTIES FOR KNOWINGLY MISCLASSIFYING INDEPENDENT CONTRACTORS Effective February 10, 2011 (enacted October 13, 2010) In October 2010 Governor Rendell signed Act 72 of 2010 – formerly House Bill 400 and known as The Construction Workplace Misclassification Act – into law. The new law provides criteria for independent contractor classification and makes it a criminal offense for construction industry employers to knowingly misclassify employees as independent contractors. Click here to read more. IRS ALLOWS MORE SMALL TAX-EXEMPTS TO FILE E-POSTCARD Dateline: January 2011 Small tax-exempt organizations with gross receipts of $50,000 or less for tax years ending on or after December 31, 2010 may be required to file Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ. The gross receipts threshold was raised from $25,000 to $50,000, allowing more tax-exempt organizations to avoid filing a full Form 990 or 990-EZ unless they choose to do so.
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