Enrolled Agents Needed for More Than Income Tax Matters
Enrolled Agents Needed for More Than Income Tax Matters
Your work as an enrolled agent is not limited to only addressing income tax issues. You also possess the expertise to help business owners with payroll tax matters. In fact, your status from having passed the enrolled agent test allows you to negotiate for taxpayers about their payroll tax problems with the IRS.
Any business with employees becomes quickly embroiled in trouble when failing to make timely payment of payroll taxes. Avoiding these problems and accurately calculating payroll taxes is a valuable specialty for an enrolled agent practice. The enormous benefit of your advice related to payroll taxes opens the door to providing a range of tax services to business owners.
Employer withholding and remitting of payroll taxes that seems like a simple part of your enrolled agent continuing education is not so easy for many small businesses. Failure of a business to pay withheld taxes incurs a severe trust fund recovery penalty.
Of course, employers also are responsible for paying their shares of employment taxes. This includes the employer part of Social Security and Medicare plus other taxes that are paid solely by employers.
The payment schedule for remitting employment taxes on time depends upon the amount of tax payable. Deposits are made either monthly or semiweekly. A business owing less than $50,000 of taxes per calendar quarter is eligible for monthly deposits. Completion of required reports for each quarter are addressed in your EA continuing education.
Accurate calculation of payroll taxes requires careful attention to detail. Income tax withheld from employee paychecks requires having a W-4 from every worker. Various withholding amounts apply depending upon the exemptions employees claim, their income level, and the frequency of payroll dates.
Social Security and Medicare taxes are fixed percentages. But these are subject to change. This includes temporary changes such as the two percentage point reduction in the employee portion of Social Security tax for 2011 only.
Employers in some states also must withhold and remit state income tax. In addition, the states and federal government assess unemployment taxes. Deposit schedules for these taxes are completely different than other payroll taxes. For example, a business owing less than $500 of federal unemployment tax per year is permitted to make an annual payment instead of deposits throughout the year.
Taxpayers with business interests represent opportunities for tax practitioners to obtain plenty of work. Enrolled agents have thriving practices by attracting these individuals. A good way to start the relationships is by possessing a high level of expertise to handle the multiple tax consequences involving payroll.
IRS Circular 230 Disclosure
Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.…
With the year 2010 quickly coming to a close, many people have already begun putting together their New Year’s Resolutions lists. Many of these goals will include losing weight, eating healthier, and other popular ambitions, but sometimes these resolutions lack importance and life-changing qualities. Instead of listing trivial aspirations this New Year, try working on just one, life-altering resolution that will make 2011 a year to remember.
The success of a website can be solely determined by the quality of the design. If your website is appealing and efficient, users will come back – and will buy from you. A poor design will deter a lot of people from even looking at your content. Use the advice here to be certain that you have a good design to your website.
There’s that scene in the football movie “Any Given Sunday” when the anxious third-string quarterback would throw up before he starts to play. If you feel that way every time you are about to take a major test, it may be a good idea if you learn to relax. Doing so may just help you earn better scores. Good test prep for the SAT and ACT will help you eliminate test anxiety and do your best.
The California Board of Accountancy sets the rules and requirements for the number and type of CPE hours which a CPA must complete to renew his or her CPA license. The California Board of Accountancy does not, however, require that CPE providers be pre-approved or registered with the state board (other than the Professional Conduct and Ethics course and the Regulatory Review course). The following information pertains to The California Board requirements for CPE other Professional Conduct and Ethics and Regulatory Review courses.
You are certified to go scuba diving now and ready to take on the world. At that point your scuba instructor will bring up the next class again, Advanced Open Water. Some will say, “Why can’t I go and just scuba dive since I am certified”. This is true. There is no “Scuba Police” sitting there waiting to give you a ticket like they do when you are driving. However, think about this in a little different perspective. After you are trained in the class and pool you need to do four open water dives with an instructor to demonstrate that you remember everything you were taught. All you need to do is four dives. Most people remember being teenagers or have teenagers close enough to relate. Imagine a teenager jumping on the highway after only four times driving behind the wheel in the real environment. Can it be done with no harm? Sure, but most of us would not count on it. If they make it back OK, it is the parents who will have this pain of worry of what could go wrong.
Online tutoring has become an excellent alternative for those who find it difficult to attend various tutoring centers located far away from their homes. It provides great relief to such students as they can choose from a variety of subjects such as reading, writing, math, science or accounts and receive one-on-one tutoring from well-qualified teachers online.