Staying organized, with careful bookkeeping, is another way to make tax time painless. It is important to think about your taxes throughout the year, not only during tax season.
Jefferson City, Missouri (PRWEB) August 26, 2015
Bert Doerhoff CPA, founder of AccuBiz, offers insight into the recent tax changes that impact small businesses. One of the most significant changes is the new tax brackets, now totaling seven. It is important that businesses are aware of their new tax bracket so that they are prepared for their upcoming tax bill.
Another notable change is the alterations to taxation on capital gains. Capital gains taxes have been expanded and, underscoring the importance of recognizing a new tax bracket, businesses are taxed for capital gains according to their tax bracket. There are also changes in how ordinary and qualified dividends are each treated for taxation.
Small businesses should also be aware of the changes to payroll (FICA) taxes. These include Social Security tax, Medicare tax and the additional Medicare tax for high-earners. The Social Security tax is 12.4 percent on income up to earnings of $118,500 and Medicare is now at 2.9 percent on all earnings. Medicare for higher-earning employees is at 0.9 percent on all income over $250,000 if married and filing jointly.
New tax rules also allow for expanded contributions to retirement accounts. In a variety of 401(k) and IRA accounts, contributions are expanded to allow more income to be invested before taxes.
“In addition to being aware of these changes, there are a lot of steps that small businesses can take to make tax preparation easier in the spring. Saving every receipt for potential deductions, for instance, can have a significant impact on the tax bill,” says Doerhoff. “Staying organized, with careful bookkeeping, is another way to make tax time painless. We work with a lot of small businesses and it is important to think about your taxes throughout the year, not only during tax season.”
AccuBiz provides not only tax services to clients, but also a full range of bookkeeping, accounting and consultation for small and medium-sized businesses.
About Bert Doerhoff:
Bert Doerhoff CPA works closely with small business owners to minimize income tax and fill the gaps so the owner has more time to work on the customer centered core services. He can outsource all functions of their accounting department from bookkeeping thru CFO services. The CPA firm has multiple Quickbooks advisors to help clients maximize the benefits provided by their accounting system. Bert is the co-author of "Six Steps to Small Business Success," available on Amazon.
Contact Bert Doerhoff, CPA, by email at bdcpa(at)AccuBiz(dot)net; by phone at (573) 634-4006; or learn more at http://www.AccuBiz.net.