Over the past few years, there have been several changes and updates regarding the reporting rules for 1099 forms. In 2020, the IRS released a new Form called 1099-NEC Non-Employee Compensation. Additionally, they changed the purpose of the 1099-MISC. 1099-NEC. Businesses will now file Form 1099-NEC for each person to whom they paid at least $600 during the year. This payment would have been for services performed by an individual or company who isn't the payor's employee. 1099-MISC. Other payments businesses make to vendors totaling $600 or more for things such as rent, prizes, and awards ..read more

Due to the rapidly rising cost of fuel, the IRS just raised the business mileage rate from 58.5 cents per mile to 62.5 cents per mile for July through December of 2022. The Business Mileage Rate is used to compute the deductible costs of operating an automobile for business use as an alternative to deducting actual auto expenses. For vehicle use from January through June of 2022, employers and employees should use the rates outlined in IRS Notice 2022-03. The IRS typically updates standard mileage rates for the next calendar year each fall. Are you looking for someone to manage your companies ..read more

Due to a lack of knowledge of proper accounting procedures and regulations, many small business owners often make costly bookkeeping errors in their early years of operation. Here are 5 of the most common bookkeeping mistakes small business owners make. Managing Your Books By Yourself Money management is undoubtedly a crucial task and should be left for professionals to handle. If you don't have a reasonably strong background in accounting and business tax law, you shouldn't handle your own bookkeeping. Delegating this task to a professional will help identify costly errors and free up time s ..read more

In today's busy world, many small business owners are seeking to outsource work. It is an excellent option for entrepreneurs who want to save time and money as they further grow their businesses. Here are a few reasons why you should consider outsourcing work to domestic contractors: 1. They are Less Likely to Have Language Barriers A top concern business owners have when considering hiring overseas workers is whether or not their needs and concerns are understood. When not comprehended correctly, work often needs to be corrected or redone, resulting in wasted time and money. This is much les ..read more

One of the most common errors a business can make is not having the correct status for a worker. The IRS is clear on what differentiates employees from independent contractors. There are three defining areas the IRS takes into consideration: behavioral control, financial control, and the parties' relationship. Behavioral Control: Employees Employees typically work specific hours as directed by their employer and at a location that the employer determines. They use the company's tools, equipment, and resources to perform their job. Additionally, their employer instructs them on how the work sh ..read more

Just as people need to watch their blood pressure, weight, and cholesterol, which are vital health indicators, business owners also need to monitor crucial financial information to enable them to manage their businesses successfully. Failure to stay on track of your business's financial health could gradually result in business failure; however, failure rarely occurs without warning. What to Watch Out For By regularly utilizing reporting tools such as profit and loss statements, balance sheets, customer databases, etc., watch out for these evident signs: Sustained Cash Flow Problems Cash flow ..read more

Due to the rapidly rising cost of fuel, the IRS just raised the business mileage rate from 58.5 cents per mile to 62.5 cents per mile for July through December of 2022. The Business Mileage Rate is used to compute the deductible costs of operating an automobile for business use as an alternative to deducting actual auto expenses. For vehicle use from January through June of 2022, employers and employees should use the rates outlined in IRS Notice 2022-03. The IRS typically updates standard mileage rates for the next calendar year each fall. Are you looking for someone to manage your companies ..read more

Just as people need to watch their blood pressure, weight, and cholesterol, which are vital health indicators, business owners also need to monitor crucial financial information to enable them to manage their businesses successfully. Failure to stay on track of your business's financial health could gradually result in business failure; however, failure rarely occurs without warning. What to Watch Out For By regularly utilizing reporting tools such as profit and loss statements, balance sheets, customer databases, etc., watch out for these evident signs: Sustained Cash Flow Problems Cash flow ..read more

One of the most common errors a business can make is not having the correct status for a worker. The IRS is clear on what differentiates employees from independent contractors. There are three defining areas the IRS takes into consideration: behavioral control, financial control, and the parties' relationship. Behavioral Control: Employees Employees typically work specific hours as directed by their employer and at a location that the employer determines. They use the company's tools, equipment, and resources to perform their job. Additionally, their employer instructs them on how the work sh ..read more

The Standard Tax Deduction Rises in 2022 All taxpayers are eligible to take the standard tax deduction unless they elect to itemize their deductions. The standard tax deductions for 2022 are: Single: $12,950 (up from $12,550 in 2021) Head of Household: $19,400 (up from $18,800) Married Filing Jointly: $25,900 (up from $25,100) Married Filing Separately: $12,950 (up from $12,550) Tax Bracket Increases for 2022 Federal taxes are calculated on tax brackets depending upon your filing status. Tax brackets are adjusted for inflation each year. In 2022, the minimum income levels for top tax brackets ..read more