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Showing posts from April, 2013

Managing your Business Finances like a Pro: Getting Started

Begin managing your finances using QuickBooks with these simple steps and quick tips.
Getting Started Consult with your accountant and discuss the use of QuickBooksBuy and Install QuickBooks pro (You can buy through us here)Structure your various accounts- Start with the minimum number of accounts, then expand.Establish an accounting routine that works for you and stick to it.Work with your accountant and keep in close contact all year round.

Good Accounting Habits Record Transactions regularly. Including but not limited to:     Buying/Expense: bills, checks, credit, paying employees, contractors     Selling/Income: estimates, invoices, sales     Credit Card TransactionsReconcile accounts monthlyUpdate financial statements quarterlyBe as accurate and Consistent as possibleFix mistakes as they happen (They are fixable!)
Set Up Your Budget It is simple to set up your company’s budget in QuickBooks. The program allows you to create one budget per fiscal year for each account, customer or job,…

Do’s and don’ts for paying part-time employees

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Do’s and don’ts for paying part-time employees

Source:  The American Institute of Professional Bookkeepers; Bookkeeping Tips Newsletter

Do withhold FICA on part-timers, including retirees.
Even if someone who works for you part-time also has a full-time job where they have had 100% of their FICA withheld for the year, you must withhold the full amount of FICA from their pay. These individuals can obtain a refund of any overpaid FICA on their 1040. Similarly, if a retiree receiving Social Security benefits works for you, say, one day a week, you must withhold FICA.  Don’tassume former employees who return part-time are Independent Contractors.
If they do the same job they did before they left, especially in the same tax year, they are employees, not independent contractors. Don't base worker status on length of service. 
A worker who fits the definition of “employee” is an employee and all employment taxes apply—even if he or she works for you only for a few hours on only one day, is stil…