News
August 2010
-
New tax laws to create flurry of paperwork for business
August 25th, 2010New healthcare law includes expanded 1099 reporting rules. While the new rules don’t apply to payments made before 2012, it’s not too early to start gearing up to deal with them.
Companies need to brace themselves for an onslaught of increased paperwork in the coming years, thanks to the new federal healthcare law. Beginning for payments made in 2012, businesses will be required to file 1099s for many more services, and as a result, will be required to obtain Tax Identification Numbers (TIN) for any number of vendors in order to properly file the forms. At the same time, business owners must be prepared to provide their TIN to other companies who must also file 1099s.
-
Do the math
August 2nd, 2010McDonald’s owner/operators should use two benchmarks to take the financial pulse of their restaurants: liability turnover and net equity percentage. These are two of the balance sheet measures that McDonald’s calculates to determine the solvency of an organization.
Liability Turnover in Days is computed when an operator’s working capital is negative. This happens when “current assets” are less than “current liabilities.” This number identifies the number of days of next month’s sales that are needed to cover this deficit. According to McDonald’s guidelines, this should be fewer than seven days.
June 2010
-
Weight of health care law heavy on employers
June 22nd, 2010Tax credits available for some small businesses
The new health care law includes sweeping changes for both employers and individuals. Following is a brief summary of several key tax-related provisions.
Coverage for individuals: After 2013, any individual not eligible for Medicare or Medicaid must obtain minimum essential coverage or pay a nondeductible penalty based on a flat dollar amount or a percentage of household income. The new law also provides coverage subsidies to qualified lower-income individuals through premium assistance tax credits and reduced cost-sharing.
-
Current Tax News
Accounting and Tax news updated daily.