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Sunday, April 16, 2017

Hiring your children can lower your payroll tax bill


  

No FICA tax (Social Security tax and Medicare tax) is due if sole proprietors or husband-wife partnerships hire their children who are under age 18.

 

Ditto if the children work for a parent's one-person LLC that's disregarded  for tax purposes.

 

Also, Federal Unemployment Tax (FUTA) is not owed on their salaries until they reach age 21.

 

It is important that all of the formalities and record-keeping rules are followed when hiring children that would be followed when hiring any other employees.

 

Also, the children must actually perform services for the business and the pay should be reasonable based on the facts and circumstances.

 

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

Mike Lupo, SCORE Counselor


 

Monday, April 10, 2017

2017 Florida Small Business Issues




 

The South Florida Business Journal recently reported on a survey of the top 3 small business concerns as we move through 2017. The issues are:

 

1.      Hiring is a challenge as they anticipate growth while managing overhead costs. This concern seems to remain a dilemma for small-business owners wanting to see an appreciative improvement in revenue.

2.      Grow their revenue. Improving customer experience and retention was key to furthering success in 2016, followed by launching new products and expanding into new markets. Now what do they do?

3.      Dropping Health insurance due to the overburdening cost and opting to pay the penalty, which has become more cost-effective.

 

Check the full article for more details.

 

Steve Koenig, SCORE Counselor


 

 

Tuesday, April 4, 2017

IRS Penalty Relief


 
 

You may qualify for relief from IRS penalties if you made an effort to comply with the requirements of the tax law, but were unable to meet your tax obligations, due to circumstances beyond your control.

 

If you received an IRS notice, be sure to check that the information in your notice is correct. If you can resolve an issue in your notice, a penalty might not be applicable.

 

Penalties eligible for relief include:

 

  • Failing to file a tax return
  • Failing to pay on time
  • Failing to deposit certain taxes as required
  • Other penalties as applicable
     
    Types of Penalty Relief offered by the IRS include:
     
  • Reasonable Cause
  • Administrative Waiver
  • First Time Penalty Abatement
  • Statutory Exception
     
    Interest Relief:
     
    The IRS does not abate interest  for reasonable cause or as first-time relief. Interest is charged by law and will continue to accrue until your account is paid in full.
     
    When it comes to IRS penalties, always request an abatement before paying the penalty. If you pay the penalty first, you most likely will not be able to recover your payment from the IRS.
     
     
     
    This article was written by Donald M. Scherzi, CPA, CFP, LLC
    Mike Lupo, SCORE Counselor
     

Special Mentor of the Month


Special Mentor of the Month


 



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:
 

JOHN AHEARN

 

When  it comes to recognizing outstanding members of our Chapter, there’s no need to go past the very first name on our Chapter Roster. That is where you will find the name John Ahearn, and we are delighted to announce that John has been elected to Special Mentor of the Quarter, for April, May, and June. It’s not hard to see why:
John has distinguished himself throughout his membership by stepping up to major responsibilities on a regular basis. His activities include his distinguished service on the Executive Committee, his role in mentoring to the Young Entrepreneurs Academy (YEA), his service as Chairman of the Sponsorship Committee, diligently seeking vital financial support for our endeavors, his liaison role to the Office Depot Foundation where he has built strong ties, including persuading  Mary Wong, a nationally recognized leader, to be one of the Keynote Speakers at our May 6th Conference, his tireless efforts at FAU, both as a volunteer Mentor at their Tech Runway, to building bridges with their Veterans organizations, his service on various Ad Hoc committees, his work in reorganizing the South Palm Beach Parkinson Foundation chapter, where he was elected to the Board, and, finally, his creating and delivering outstanding Seminars designed to assist our clients with their Business Plans.
So you see it’s virtually a no-brainer to honor this very special member of our TEAM. In honoring John we honor the best in all our members: commitment, dedication, service.
Take a bow, dear friend and colleague, you are our very special Mentor of the Quarter for April, May, and June.