The IRS recently posted its final version of the 2011 990 form, which is used by not-for-profit organizations. Significant changes to this version of the 990 are outlined in the IRS instructions, available here: http://www.irs.gov/pub/irs-pdf/i990.pdf
A recent article published in the AICPA's Journal of Accountancy also summarized the significant changes on the form. The article is available here: http://www.journalofaccountancy.com/Web/20125042.htm
Thursday, January 26, 2012
Thursday, January 19, 2012
Employer's Tax Guide for 2012
The IRS recently released their Employer's Tax Guide (Publication 15) for 2012. It is available here: http://www.irs.gov/pub/irs-pdf/p15.pdf
Tuesday, January 3, 2012
Payroll Tax Cut Extention Includes Recapture Tax Provision for Higher Wage Earners
As you probably have heard, the reduced payroll tax rate was recently extended through February 2012. (This continues the reduction of employees' Social Security tax withholding rate from 6.2% to 4.2% of wages paid through Feb. 29, 2012.)
However, the law also includes a "recapture" provision. This new provision applies only to employees who receive more than the Social Security wage base for the two-month period. Therefore, employees receiving more than $18,350 for January and February 2012 (calculated as two months of the 12-month amount of $110,100) will need to pay an additional amount equal to 2% of the wages received during the extension time. This "recapture tax" will be considered an add-on to income tax liability for higher wage earners and will be due in 2013 when the employee files his/her 2012 income tax return.
Additional info on the tax cut and the recapture provision are discussed on the IRS website: http://www.irs.gov/newsroom/article/0,,id=251650,00.html
However, the law also includes a "recapture" provision. This new provision applies only to employees who receive more than the Social Security wage base for the two-month period. Therefore, employees receiving more than $18,350 for January and February 2012 (calculated as two months of the 12-month amount of $110,100) will need to pay an additional amount equal to 2% of the wages received during the extension time. This "recapture tax" will be considered an add-on to income tax liability for higher wage earners and will be due in 2013 when the employee files his/her 2012 income tax return.
Additional info on the tax cut and the recapture provision are discussed on the IRS website: http://www.irs.gov/newsroom/article/0,,id=251650,00.html
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