The Small Business Tax Help Blog

Archive for November, 2008

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Question: How many millions of jobs will be lost if Obama care passes?

What I’ve read is that if employers don’t provide health care to all employees, they will be an 8% tax imposed on them. Obviously many companies can’t afford either option.

http://money.cnn.com/2009/07/25/smallbusiness/small_business_health_care_reform.smb/index.htm?postversion=2009072510

“The most recent Congressional proposal, from the House of Representatives, would require any company with an annual payroll of $400,000 or more to offer health insurance to workers or pay a penalty totaling 8% of payroll costs.”

Answer: That all depends how quickly the private insurers go belly up. God bless.

Supervisors Eye Tax Hikes On Aircraft, Hybrids; State Cuts Could Hit Deputies, Courts Quickly

While continuing to assess the scale of service and personnel cuts that could be required as part of the FY11 budget deliberations, many supervisors are focusing on revenue-whether to increase some of the local taxes to offset real property tax declines and what impact the state's budget troubles will have on relied-upon money for localities.

Vince Stanzione Trading Global Financial Markets Miillionaire Trader Program 2009

Question: What will happen, if I don’t have enough money in my Bank Account?

Hello All,

I have a financial question, wondering if someone can answer that??

Actually, I am using Google Checkout for sometime now, I received quite a few fraudulent charge-backs lately. I write fraudulent because I know they have made them deliberately and they authorize the transaction at the time of purchase. And yes, we provide online services to our clients. Now my question is that we don’t have any money in our bank account associated with Google Checkout and we even doesn’t use that Google account as well as bank account anymore…. And now my Google Checkout account is below zero and they will be going to my bank account to retrieve the money but my bank doesn’t have overdraft facility, so they can’t withdraw anything from me.

I was wondering, what will Google do in this case??? How will they recover money from me? Will they go to the courts? Or report the bad credit, as they have my EIN/SSN?

Your thoughts will be highly appreciated. Thank you in advance.

Answer: Do what you can to get money in your bank account. Overdrawn accounts that aren't refilled promptly get closed, and you go on chexsystems. It is a type of credit reporting agency, but for banks. They can keep you from getting a checking account for the rest of your life. Doesn't matter if you declare bankruptcy down the road or not, the usual rules don't apply for them. I am on their list ... and I did get a checking account. But it's with a terrible bank that is constantly making errors and cheating their customers. They haven't cheated me yet, but there are plenty of stories about it on the web.

I don't mean to scare you, just giving you fair warning. I didn't know until after it was done.

Lower Makefield Township Police Report

DRUG ARREST – Police on patrol at Big Oak Road and Stony Hill Road conducted a pedestrian stop of two males that were walking on the roadway. Further investigation revealed that one of the males, a 20-year-old from Morrisville, was in the possession of a small amount of marijuana. He will be cited by police. The arrest was reported March 21 at 3:18 a.m.

The Lion King - Morning Report (German)

Question: I need to know another way to get my childs daycare TAX ID #/EIN number?

So My son went to his daycare from June 2008 through October 2008. They messed up really bad and I took my son out of their Daycare. This is not a in home daycare! Well I still owe them 100.00$ But I am fighting on having to pay them that as he was not there the whole last month. Anyways I called them today to get their Tax Id / EIN number for my taxes. (I have the appt to get them done tomorrow) and they told me until they recieve their money they will not provide me with that info! I need to know if they are even allowed to do this? Also if their is any other way I can ge this number? I cannot find the reciepts I saved either and I have been looking all over.(As those usually have the tax ID # on them)….Please Help Me! Thanks
As far as the End of the month answer isn’t that for employers not child care centers. I should be able to obtain that number at any time….right?

Answer: They are required to provide their EIN number to you. You could formally request it by given them a W-9 form.

You can often find the EIN Online by searching the organizations name and the keyword ‘employer identification number’ or ‘EIN’ on a web search program.

You could ask one of the other parents who send their children there because they should have or be able to get the EIN.

If they are affiliated with another organization (church, YMCA, city parks department, etc), you could contact the larger organization because they usually have the same EIN or the EIN of the parent organization would be acceptable.

Richard K
HR Block

This advice is based upon my understanding of the law in effect at the time it was written as it applies to the facts provided by you. See my profile for more information.

Hosting Companies – Who is Your Lobbyist Where is Your 1099

By Tom Millitzer I am crafting my presentation for HostingCon and tangents keep on slipping in. I kick them out, Obviously I can’t just go off in the wrong direction. So these are a couple of topics we can discuss over a Texas tea. First who is your lobbyist in Washington? That said lets go to topic B.

Ein Wallfahrtslied / Piligrim’s Psalm (Psalm 121)

Question: What number am i supposed to be using to look up my Earned Income Credit?

Where to I find the number that I am supposed to look up on the earned income chart?

Answer: Actually you look it up twice. Once with earned income (wages or net self-employment income) and once with AGI. Whichever numer is smaller is the amount you can claim.

Here comes 'The Big Reset'

Townships or schools? Take your pick

Left on the Table

Question: Appropriate W-4 withholding for newly married couple? (US California)?

Hello – I recently got married (mid ‘05), but didn’t change my withholding until last year. We were originally worried that we’d get nailed with a hefty tax bill last year, as we were both withholding 2, single. Turns out we only owed $500 federal, and a small amount for state. So early in 2006, we both updated our W-4’s to married jointly. My wife was between jobs, and was making a career move – we saw that our total income was going to drop, and thought withholding 1 for both of us would be fine. Our 2006 total income (before adjustments) was about $15K less than 2005 – so I thought we might even get a refund.
We were right, for our state taxes at least – refund of +$400.
For federal, however, we owe $3100.
My mind boggles at the insanity of this. Is this the dreaded “marriage tax” in effect? How in the hell could this happen? I filed through H&R Block’s website – and I checked and rechecked my return before submitting – and so now I might even owe a penalty? What gives?!?

Answer: What gives is that the withholding rates for Married are based upon a SINGLE income for the family unit. If both of you work, especially if one of you makes substantially more than the other, you will wind up with exactly the situation that you are now in.

Prior to making the change you had it just about right. A $500 debt at tax time isn't enough to draw any penalties for underpayment and gives you the maximum use of your $$$ through the year.

To properly calculate your withholding exemptions, a dual-earner couple needs to sit down with a copy of the Form W-4 package (get a copy from the IRS website) and use the worksheets on page 2 to figure the correct exemption amounts and extra withholding amounts. The totals you come up with are the TOTAL number of exemptions that you can claim between you and the TOTAL additional withholdg amounts that need to be withheld.

If you had left your withholding exemptions alone and added a $10 "kicker" per week ($20 per pay period if paid bi-weekly) you probably would have worked out just about right at tax time this year even with your spouse's reduced income in 2006.

If you read Form W-4 completely, it's pretty clear that you need to use the worksheets on page 2 to arrive at the correct withholding amounts for your tax situation. We're nearly 1/3 of the way into tax year 2007 so you need to get on this quickly, and probably will need to designate additional withholding amounts to prevent another negative balance next year to make up for the under-withholding so far this year.

Goal is money shift, no tax hike

Tempers are short, coffers low and a partisan skirmish Thursday on the Assembly floor made the target clear: Take money from some to help others while avoiding the dreaded two-thirds vote requirement.

DRIVE 300 MILES PER GALLON!!!!