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Monday, October 17, 2016

How Long Should You Keep Payroll Records?


At least four years after the due date for employees to file their income tax returns for the particular year, IRS says.


Records to be retained include wages, payment dates, and employee data such as their names, dates of employment, Social Security numbers and addresses.


Also, copies of W-4 Forms, W-2 Statements, I-9 Forms, Payroll Tax Returns, and amounts and dates of tax deposits.


Keeping these records will help you survive a State of Federal Income Tax and Payroll Tax Audit.




If you outsource payroll, be sure the payroll company provides you with copies of all payroll related information each month, including proof of payroll tax deposits made. The business and business owner is the party ultimately responsible for required payroll tax deposits.



This article was written by Donald M. Scherzi, CPA, CFP, LLC

Mike Lupo, SCORE Counselor


Monday, October 10, 2016

Balancing Act

Here is a case where a decision is impacting the business in very visible ways.


When the restaurant started the employees were instructed to “greet and seat” entering customers “ASAP”, providing preference over servicing seated customers. This created waiting lines of employees at the entrance during slack periods, another welcoming sign to customers, and helped build a repeat customer base.


At some point the process shifted to one where seated customers received priority. This resulted in customer “queues” waiting to be seated at one of the many empty tables they could see. The repeat customer base shrank as a result.


How about the balance between reservations and walk-ins?


In the restaurant business, “time is money”. Get them seated, serviced and billed/collected to make room for the next customer.


Where is the balance in your business?


Steve Koenig, SCORE Counselor


Tuesday, October 4, 2016

Depreciation Issues


Depreciation is an annual income tax deduction that allows you to recover the cost or other basis of certain property over the time you use the property in your business.


To be depreciable, the property must meet all of the following requirements:

·It must be property you own.

·It must be used in your trade or business.

·It must have a determinable useful life.

·It must be expected to last more than one year.


Examples include: Automobiles, Buildings, Equipment, Furniture, Fixtures, Intangible Assets, and Structures.


NOTE: Land is never depreciable.


The tax laws require business owners to keep proper records showing the business, investment, and personal use of property. Only the business and investment use is depreciable.


Proper records include:

·Description of the property

·How the property was acquired       

·Property's cost or other basis

·Business and Investment use percentages


Depreciation begins when you place the property in service, meaning when the property is ready and available for its specific business use.


Depreciation ends when you have fully recovered your cost or other basis or you permanently withdraw it from use due to:

·Sale or exchange

·Convert to personal use


·Property is destroyed or scrapped.


The tax laws use various depreciation rules for specific types of property. IRS Publication 946 provides detailed information regarding depreciation issues.



This article was written by Donald M. Scherzi, CPA, CFP, LLC

Mike Lupo, SCORE Counselor


Sunday, October 2, 2016

Special Counselor of the Montrh

We are delighted to shine the spotlight on a distinguished member of our staff who by his or her efforts brings great credit to our organization. This month we are honored to salute:



Wolfgang has been a proud member of our Chapter for 10 years and more. During that time he has served as Vice Chair, Chairman, and District Director. In those varied capacities he hit two home runs. First he dedicated himself to getting our Chapter solidly back on a success track. And his well-thought-out strategy paid off when, in 2013, the Chapter won the National Chapter of the Year award, in competition with 320 chapters nationwide.
With his attention later turned to improving the quality of all 7 Chapters then in his South Florida District, Wolfgang challenged and inspired Chapter leadership with insightful recommendations on every aspect of Chapter management. And it wasn’t long before the District was in the top three in the nation, and 1st in total services, among 69 different districts.
Now, back on our Executive Committee, Wolfgang serves with distinction as a Chapter Vice Chair, member of the Planning Committee, ambassador to the political arena, wise Counselor, and spearhead of the development of an important new area relationship that will provide the Chapter a setting for our Annual Business Conference.
Wolfgang continues to inspire us all with his dedication, clear thinking, and goal-oriented planning. So, take a very well deserved bow, dear friend, as we salute you as our Special Counselor of the Month for October, November, and December 2016.

Monday, September 19, 2016

BEST Tech company to work for

Fortune magazine and Great Places to Work Institute have rated a SE Florida company, Ultimate Software of Weston, the Top Tech Workplace in the USA. They have over 1100 employees. Their benefits include: 100% health care coverage; 40% match 401K; Paternity/adoption leave; 2 paid volunteer service days.

How do your employees feel about working for you?

Steve Koenig, SCORE Counselor


Sunday, September 11, 2016

Standard Mileage Rate Method for Business use of a Vehicle

Choosing the Standard Mileage Rate Method

For a vehicle you own, you must choose to use it in the FIRST YEAR the vehicle is available for use in your business.

For a leased auto, the standard mileage rate method must be use for the ENTIRE lease term.

You must make the choice to use the standard mileage rate method by the due date (including extensions) of your return.

You can elect to use the standard mileage rate method if you used a car for hire (unless the standard mileage rate method is otherwise not allowed).

If you use the standard mileage rate method, you cannot deduct your actual vehicle expenses for that year.

Standard Mileage Rate Method NOT Allowed

You cannot use the standard mileage rate method if you:

·Use 5 or more cars at the same time.

·Claimed a Section #179 deduction on the car.

·Claimed the Special Depreciation Allowance on the car.

Interest Expense on an Auto Loan

If you are an employee, you cannot deduct any interest paid on a car loan. This applies even if you use the car 100% for business as an employee.

If you are self-employed and use your car in your business, you can deduct that part of the interest expense that represents your business use of the car.

Personal Property Taxes

If you itemize your deductions on Schedule A (Form 1040), you can deduct state and local personal property taxes on automobiles. You can take this deduction even if you use the standard mileage rate method or if you do not use your car for business.

If you are self-employed and use your car in your business, you can deduct the business portion of state and local personal property taxes on Schedule C (Form 1040). If you itemize your deductions, you can include the remainder of your state and local personal property taxes on the car on Schedule A (Form 1040).

Parking Fees and Road Tolls

You can deduct any business-related parking fees and tolls in addition to using the standard mileage rate.

Standard Mileage Rate Method Calculation

To figure your auto deduction under the standard mileage rate method, you must keep an accurate and complete record of your business use of your vehicle.

You deduction is calculated by multiplying the total number of business miles for the year by the IRS allowed rate per mile (which the IRS usually adjusts each year).


This article was written by  Donald M. Scherzi, CPA, CFP, LLC
Mike Lupo, SCORE Counselor


Tuesday, September 6, 2016

Florida is No. 1

In case you missed it, according to a WalletHub survey Florida is No. 1 for Retirement! The survey looked around the country and weighted cost of living, taxes, population age, museums and theaters, golf courses, volunteer opportunities, crime, drinking water quality, life expectancy, Doctors/Dentists, Healthcare.

Is your business taking advantage of this?

Steve Koenig, SCORE Counselor