What Are Voluntary Deductions?
These deductions are only made if the employee agrees to them. This money pays for different benefits that the employee has elected to participate in. Examples include health and life insurance premiums, employee stock purchase plans, retirement contribution plans,...
What Are The Different Taxes Withheld?
Employers withhold taxes from their employees’ paychecks and hand this money over to the various tax agencies. These deductions include:Federal Income Tax: The rate of tax is based on the tables found in Publication 15.Social Security Tax: The tax rate for Social...
Which Information Returns Do I File?
There are different information returns for a variety of transactions. The process can be confusing; for example, there are 12 1099 forms that are all used for different purposes. It is a good idea to look for advice from a respected accountant in Arizona if you don’t...
When Do I File Business Information Returns in Arizona?
You normally need to file any of the 1099 forms with the IRS by Feb. 28, but recipients should receive copies by Jan. 31. The reporting requirements can be rather complicated. One part of the process involves obtaining a W-9 (Request for Tax ID Number) from any payee...
Reportable Transactions for Filing Information Tax Returns
You will need to go to the IRS website to view the list of 120 transactions that must be reported, along with the forms that must be used. Please note, this is not an exhaustive list, so even if a certain transaction is not included, it doesn’t mean you can avoid...
What is an ‘Information Return’?
An information return is a tax document that must be completed if you are engaged in a business or trade, whether it is classified as a corporation, estate, individual, trust, or partnership, if you make a reportable transaction during a calendar year. This document...
Closing a Business in Arizona & Tax Obligations
Believe it or not, when the time comes to close your business, there is a lot of work to do. You can’t just shut your doors and hope the IRS goes away, because it won’t! There are different reasons for closing a business and a variety of methods to complete the...
Best Tax Practices for Operating a Business in Arizona
It’s a mistake to think your tax affairs will be smooth sailing once you become an established small business. No matter how long you have been operating your business, there is always a chance you will encounter some unusual situations. For example, do you know the...
Help Calculating Tips & Gratuities Under Taxable Income
Regardless of whether most of your income comes from tips, all tips or gratuities you receive while on the job are considered to be taxable income. Even non-cash gifts, such as tickets to sporting events, must be declared to the IRS, as they are subject to federal...
Help Calculating Alimony Payments Under Taxable Income
When you receive alimony from a spouse or former spouse, it is necessary to report it as income in the year you received it. Alimony payments you make are tax-deductible but only if they are made under an official divorce decree. Payments not made under an official...