Happy New Year!
As we wave goodbye to 2005, most of us are reflecting on
the past year, looking at our triumphs and our failures. The most important
thing we can do is to celebrate our triumphs and learn from our failures. Any
business owner will tell you that a triumph is beautiful thing, but a failure
is the source of invaluable education. Make sure you take that time to reflect
back on the past year, toast to yourself for all that you have succeeded at
and all that you have learned.
My biggest triumph for 2005 was fulfilling my 2 biggest business
resolutions. I attended the IVAA Summit in October and I got all 3 of the
certifications I was aiming for. I received the CVA and EthicsCheck
certifications earlier this year and in December I obtained my CRESS
(Certified Real Estate Support Specialist) designation. Yay!
- "Tech Talk With Tom" talks about virus scan
- Learn about proper printing of 1099s and W2s in
the Quickbooks tips section
- Our spotlight this month is on Concrete Evolution, a company that provides
beautiful flooring at an affordable price
- My usual collection of quirky office and accounting humor.
- ... and those ever important upcoming tax deadlines
hope you enjoy this month's issue! I am always looking for articles. If you
have an article you would like to write, please feel free to email me at firstname.lastname@example.org
by Mark Bacak
Who must may self-employment tax? If you are
self-employed, you will be responsible for self-employment tax. For the purpose
of determining self-employment tax, you are self-employed if you are a sole
proprietor, an independent contractor, a member of a partnership, or are
otherwise in business for yourself. As a self-employed individual you will have
a Schedule C to attach to your Form 1040, and self-employment tax is computed on
Form 1040, Schedule SE. Individuals must pay self-employment tax is they have
net earnings of $400 or more. They are several sources of net earnings that are
used when figuring your self-employment tax liability. In most cases, net
earnings include net profit from a farm or nonfarm business.
If you operate more than one business, your net
earnings from self-employment are the combined net earnings from all your
businesses. If you have a loss in one business, it reduces the income from
another. Self-employment tax is the self-employed individual's contribution to
social security and Medicare taxes. The only difference between the employee and
the self-employed is the employee's social security and Medicare taxes are paid
half by the employee and half by the employer. When an individual is
self-employed, he/she is responsible for the entire amount.
There are alternative methods that can be used
for figuring liability of self-employment tax. The Farm Optional Method and the
NonFarm Optional Method may qualify an individual to claim a larger Earned
Income Credit or Child Tax Credit. They may also, however, increase your
self-employment tax liability.
The maximum amount of earnings subject to
self-employment tax is currently $87,000.00 and when figuring your adjusted
gross income on Form 1040, you may deduct up to one-half of your self-employment
tax liability. If you are member of the ministry or clergy you may request an
exemption from self-employment tax from the IRS.
In summary, if you are self-employed, have net
earnings of $400 or more, and file a tax return, you will be subject to
self-employment tax. To learn more about individual liabilities, exemptions, and
alternative tax methods, please visit the online site for IRS Forms and
Publications at www.IRS.gov.
Topic 554, Publication 517 and 533 will provide more detailed and situation
Matt Bacak became "#1 Best Selling
Author" in just a few short hours. Recent Entrepreneur Magazine’s e-Biz
radio show host is turning Authors, Speakers, and Experts into Overnight Success
Stories. Discover The Secrets To Unleash The Powerful Promoter In You! Sign up
for Matt Bacak's Promoting Tips Ezine ($100 value) just visit his website at http://www.powerfulpromoter.com
To All Employees:
Due to increased competition and a keen desire to remain in
business, we find it necessary to institute a new policy.
Effective immediately, we find we must ask that somewhere
between starting time and quitting time and without infringing too much on the
time usually devoted to lunch period, coffee breaks, rest period, story telling,
internet browsing, ticket selling, golfing, auto racing, sporting events,
vacation and the re-hashing of yesterday's T.V. programs, that each employee
endeavor to find some time that can be set aside and known as a WORK BREAK.
To some this may seem a radical innovation, but we honestly
believe the idea has great possibilities. It can be an aid to steady employment
and it might also be a means of assuring regular paychecks.
While the WORK BREAK adoption plan is not compulsory, it is
hoped that each employee will find enough time to give the plan a fair trial. It
is also hoped that those employees not in favor of adopting the WORK BREAK idea
will have fully completed their vacation plans.
QuickBooks Q & A
DO from CA asks: Can I
print 1099s on regular paper?
No. 1099s must be printed on
the red IRS forms. You can get the forms from your local office supply store or
by calling or visiting an IRS office. Don't forget to grab a 1098 or two (the
W2s (and the W3
transmittal), however, CAN be printed on plain paper.
an article you’d like to write for our monthly newsletter or want to be
spotlighted? Have a QuickBooks question or something you'd like to see in the
A special thank you to our copyeditor and
all-around-language-geek, Dyanna Larson of Ink
Think - visit her website for more information about her services.
|Important Tax Deadlines|
15 - 4th Qtr estimated tax payments due
16 - IRS Monthly payroll tax deposits due for December
January 31 - Last day to mail 1099s and W2s to recipients
31 - Last day to file 941s and 940s.
15 - Get new W4s for employees filing exempt status for 2005.
15 - IRS Monthly payroll tax deposits due for January
28 - 1099s and W2s must be postmarked by this date.
IRS has announced that the new standard mileage rate for 2006, effective
January 1, 2006, will be 44.5 cents a mile.
is 4 cents per mile higher than the 2005 rate, and 4 cents per mile ~lower~
than the emergency increase for the last four months of 2005. For more
detailed information, check out the announcement
on their website at http://www.irs.gov
Visual Humor |
This month we take a peek at the folks behind the
funnies. I get a lot of compliments on my quirky office cartoons and now I'm
going to share my secret. Visual Humour Cartoon Agency is a company based in the
UK. Their website is home to a ton of amusing cartoons and includes a featured
free carton of the week. They have a ton of great cartoons that can be used on
websites, blogs, as part of presentations, and in corporate or organizational
communications and all at reasonable rates. In 1983 cartoonists Peter Dodsworth
and John Morris met and decided over coffee and a donut to establish a cartoon
agency to make it easier to market their work to the provincial (regional) press
in the UK. This was a new market for cartoonists - the fees were small compared
to the national newspapers, but the artists would retain the copyright on the
cartoon. John and Peter formed Visual Humour with three other cartoonists. They
drew various 'feature' cartoons including 'Funny Business' drawn by John
Their business expanded to supplying 50% of the
provincial newspapers in the UK with their output and within two years the
cartoonists were being published abroad as well. Many companies, seeing the
business cartoons in the press, asked to use a cartoon for a company
presentation, in a newsletter, on a calendar, etc. This prompted the decision to
use the internet to make MORRIS business cartoons available to more companies.
In 2002 the website www.businesscartoons.co.uk
was born. They have nearly 1,500 cartoons on the site and are gradually adding
more from the over 5,000 business cartoons in their files.
For a good laugh, or to fill in that blank
spot in your Power Point slideshow that says "Insert Joke Here", visit
Visual Humour's business cartoon portal at: http://www.businesscartoons.co.uk.
How is your daughter
doing in accounting class?
Great. Now instead
of asking us for her allowance. She bills us for it.
Talk with Tom... Viral Overload |
Happy New Year!
That's right, 2006 is here with everything a typical new year brings:
tons of left over turkey, a thousand thank you cards to write, and a
bunch of new gadgets to figure out. Oh
yeah, and don't forget the massive wave of new computer viruses to turn that
nifty new computer you just got into a really expensive door stop.
It’s a good thing that virus developers are just like other software writers,
always behind schedule. So take
advantage of their laziness--take a few minutes this week and either a.) update
your existing virus scanner or b.) install one of the scanners listed below.
Grisoft AVG Antivirus FREE
This is the software I use
personally. Offering regular
updates, ease of use, and scheduled scans, this is the one I recommend to
everyone. They also offer a
commercial version for business users.
Norton Antivirus: http://www.symantec.com/
This is probably the most
popular anti-virus solution on the market today.
You can get a 15-day free trial from their website.
Mcafee antivirus: http://download.mcafee.com/
Second only to Norton, Mcafee
has been around almost as long as there have been computers and offers a 30-day
Microsoft AntiSpyware Tool: http://downloads.microsoft.com/
While not exactly an antivirus
tool MS AntiSpyware is still one of the most useful tools I've found to keep
unwanted programs off of your computer.
There you go, no excuses!
Install one of these tools today and save a lot of heartache in the New Year.
If only it was that easy to get rid of the headache.
to a happy, healthy, and virus-free 2006!
Beauchamp is the marketing
and tech expert behind OffAssist. He can be reached at email@example.com.
Songs Accountants Like
"Don't Be Accrual"
"Account Your Many Blessings"
"Adjust Called to Say I Love You"