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.

 

TAX TIP:

 

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

Visit us at: www.scoresouthflorida.net

 

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

Visit us at: www.scoresouthflorida.net

 

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

·Abandonment

·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

Visit us at: www.scoresouthflorida.net

 

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 H. KURPIERS  

 

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 1^st 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.