Tax Calendar for Small Business & Self-Employed

The IRS has provided a 2009 calendar with due dates for most tax filings required of small businesses and self-employed individuals. This does not eliminate the stress of managing deadlines, but at least it lists them all in one place. You can view a specific month in HTML format, print the entire calendar from a PDF document, or download the dates into a Microsoft Outlook calendar. The calendar is available at: http://www.irs.gov/businesses/small/article/0,,id=176080,00.html. The IRS welcomes feedback on the calendar, so please feel free to comment if you try it out, and we'd be glad to forward any feedback on to the IRS.

Applicable Federal Rates (AFRs) for January

The applicable federal rates (AFRs) for January for interest computed annually are as follows: Short-term (≤ 3 years) 0.81% Mid-term (> 3 years but ≤ 9 years) 2.06% Long-term (> 9 years) 3.57%

IRS Releases 2009 Inflation-Adjusted Numbers

The IRS & California EDD recently released certain amounts that are adjusted for inflation. Several of these numbers are provided below for your reference. Payroll: Social Security wage base $ 106,800 California SDI taxable wage limit $ 90,669 California SDI withholding rate 0.1 % Maximum contributions to retirement plans: 401(k), 403(b), or 457 – up to age 50 $ 16,500 401(k), 403(b), or 457 – age 50 + $ 22,000 IRA – age 49 and below $ 5,000 IRA – age 50 + $ 6,000 SIMPLE IRA – up to age 50 $ 11,500 SIMPLE IRA – age 50 + $ 14,000 Defined Contribution Plans – any age $ 49,000 Standard deduction: Single $5,700 Head of Household $8,350 Married Filing Joint $11,400 Married Filing Separately $5,700 Other amounts: Personal exemptions per taxpayer and dependent $3,650 Child tax credit for each qualifying child under age 17 $1,000 Annual gift exclusion $ 13,000

Annual Payroll Tax Return Available for Small Employers

Final regulations and procedures were issued regarding payroll tax returns for "qualified" (very small) employers, those whose estimated annual employment tax liability is $1,000 or less. An employer's annual employment tax liability includes social security, Medicare, and withheld federal income taxes. Qualified employers are eligible to file Form 944 (Employer's Annual Federal Tax Return), rather than Form 941 (Employer's Quarterly Federal Tax Return). Prior Notification – Some employers may have already been notified that they are eligible to file Form 944. If the employer prefers to file Form 944, no further action is required with the IRS. The taxpayer should file the Form 944 as instructed in the notice. Choosing to File Form 944 – If an employer has not been contacted by the IRS about filing Form 944, and the employer wants to file Form 944, the employer may request from the IRS a notification letter confirming the employer may file Form 944 by calling 1-800-829-4933 before April 1, 2009. Choosing Not to File Form 944 – If an employer received notification from the IRS with instructions to file Form 944, the employer is required to file Form 944 unless the employer opts-out because one of the following two conditions are met: (1) The employer anticipates that its employment tax liability for tax year 2009 will be more than $1,000; or (2) The employer wants to file electronically quarterly Forms 941 for tax year 2009 If these conditions are met, the employer may opt-out of filing Form 944 by following the specific procedures of Rev. Proc. 2009-13, which are available from ThomasYork by request.

Happy Holidays!

From everyone at ThomasYork, we wish you a Happy Holiday Season.

Please note that our office will be closed starting at noon on Wednesday, December 24th until Thursday, January 1st. We will resume our normal business hours on Friday, January 2, 2009.

Congratulations AJ and Taryn

Taryn Woolley (a staff accountant) and his wife Becky gave birth to a beautiful baby girl, Mikayla Woolley on Nov. 4, 2008 at 9:57am. Mikayla weighed 6 lbs and 12oz. Both mother and daughter are doing well.

Abhinesh Jit (AJ), a staff accountant, and his wife Mandy also gave birth to a beautiful baby girl, Avani Jit on Nov. 7, 2008 at 10:17am. Avani weighed 7 lbs and 11oz. The Jit Family are all tired but are doing well.