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 Good New York Times Article About Small Business and Accounting
I was made aware of a very informative and interesting article that appeared in the New York Times on August 4th of this year. The article is titled Basics of Accounting Are Vital to Survival for Entrepreneurs. Author is Darren Dahl. Dahl states that “Business owners do not necessarily need to know how to prepare a balance sheet, but they do need to know which gauges to watch.”
The article talks about the importance of bookkeeping, financial records, and use and understanding of those records in entrepreneurial success. Several good case examples were used to illustrate this importance. I strongly urge you to read this article. The link to the article is:
www.nytimes.com/2011/08/04/business/smallbusiness/a-few-accounting-essentials-are-crucial-for-survival.html?emc=eta1
If you are not a regular to The New York Times you may be asked to provide your e-mail and a password. Simply provide those and you will be granted access. There is no charge.
1099 law attached to the Health Care Reform Act repealed! This is very good news for the small business owner. Buried in the Heath Care Reform Act was a provision that required businesses to issue 1099s to all vendors that they did $600 or more of business with, regardless of their corporate status. This new law also extended the reporting beyond just service providers to goods providers. This meant that if you purchased more than $600 in office supplies (or any other goods) from a vendor you would have to issue that vendor a 1099. Of course issuing a 1099 involves obtaining the vendor’s EIN number. This would have put a pretty heavy reporting burden on many businesses. This provision of the law has now been repealed. It took several legislative fights but the provision has been repealed. So, 1099 reporting as it pertains to small business will remain pretty much the same as last year for small businesses. (For more information on 1099misc filing requirements go to www.irs.gov/pub/irs-pdf/i1099msc.pdf.)
Local Earned Income Tax Rates by Municipality:
Use this link to find Earned Income Tax filing information (and maybe other interesting information) for any municipality in Pennsylvania:
www.newPA.com
Once you have brought the page up click on “Get Local Government Support”, then click on “Municipal Statistics.” Scroll down the page until you come to “Municipal Statistics Information.” Click on the first option “Municipal Tax Rates” and use the search feature to find the municipality you are looking for.
Due Dates for Estimated Taxes:
Quarter one |
April 17, 2012 |
Quarter two |
June 15, 2012 |
Quarter three |
September 17, 2012 |
Quarter four |
January 15, 2013 |
Mailing Addresses for Estimated Taxes
Both Federal and Pennsylvania Taxing Authorities have several addresses for several different purposes. Be sure to use the correct address when sending in your estimated taxes. The addresses used to submit your income taxes are different than the addresses you must use to submit your estimated taxes.
Address for mailing Federal Estimated Taxes:
Internal Revenue Service
P.O. Box 37007
New Hartford, CT 06176-0007
Address for mailing Pennsylvania Estimated Taxes:
PA Department of Revenue
P.O. Box 280403
Harrisburg, PA 17128-0403
I hope you have put enough cash aside to comfortably pay your estimated taxes!
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