Richards, Greenberg & Co., LLP

WASHINGTON — Two new tax benefits are now available to employers hiring workers who were previously unemployed or only working part time. These provisions are part of the Hiring Incentives to Restore Employment (HIRE) Act enacted into law today.

Employers who hire unemployed workers this year (after Feb. 3, 2010 and before Jan. 1, 2011) may qualify for a 6.2-percent payroll tax incentive, in effect exempting them from their share of Social Security taxes on wages paid to these workers after March 18, 2010. This reduced tax withholding will have no effect on the employee’s future Social Security benefits, and employers would still need to withhold the employee’s 6.2-percent share of Social Security taxes, as well as income taxes. The employer and employee’s shares of Medicare taxes would also still apply to these wages.

In addition, for each worker retained for at least a year, businesses may claim an additional general business tax credit, up to Continue reading Two New Tax Benefits Aid Employers Who Hire and Retain Unemployed Workers →

You can deep-six most of your documents and go digital with the rest.

Worried about pitching documents that they may need at some point, many people decorate a spare bedroom with boxes or large file cabinets stuffed with old bank statements, tax returns and pay stubs.  (Okay, if the stash isn’t in a spare bedroom, perhaps it resides in the attic, basement or garage.) As you finish up your tax return this year, take the opportunity to clean house. With a few key exceptions — mainly tax-related documents — you don’t need to keep all those papers. And if you’re willing to use online banking and create a digital archive of crucial records, you may even be able to go paper-free.  Before you dig into those piles of records and statements, invest in a shredder to guard against identity theft. And don’t skimp on the shredder, or you’ll defeat the purpose of having one. Ribbon-cut models produce bands that can be taped back together. So shell out the money for a cross-cut or confetti model.

What to Keep

The most important documents to hang on to are Continue reading Paper Records: What to Toss, What to Keep →

Here are 13 changes in the massive overhaul that could impact your tax bill, for better or worse.

The new health care reform law is chock-full of new taxes and tax increases that will affect many individuals and businesses, but it will be years before most of these hikes take a bite out of your — or your company’s — wallet. The law also has tax breaks to help both individuals and small businesses pay for insurance.

Figuring out exactly what the new law’s impact will be on your finances will be tricky, not only because many of the effective dates are delayed, but also because the law signed by President Obama will most likely change very soon: After passing the Senate bill on March 21, the House also approved a package of modifications that the Senate plans to pass before the end of the month.

Take a look at what’s coming down the road, starting with provisions that take effect first:

•A new 10% excise tax on Continue reading Health Care Reform: Tax Hikes on the Way →

Protect Yourself From an Audit

You have your no. 2 pencil, a calculator and this year’s W-2. Now what?

That’s the thought that crosses many self-preparers’ minds as they get ready to tackle their taxes. Veteran CPA Steve Duben says it’s a tale as old as time. “The truth of the matter is that the law is complex and not easy to understand,” Duben said. “The IRS claims that the average tax return self-prepared will take an individual 21 ½ hours to complete. This includes information gathering and understanding and preparing the return.”

If you’re willing and able to put in the time and effort to prep your own taxes this year, Duben gave MainStreet a list of the most common tax mistakes he’s encountered and how to avoid them. Continue reading The Most Common Tax Mistakes →

by Cheryl A. Morse

A tax pro answers questions she hears most often and quashes some myths.

During tax season I’m in contact with 10 to 20 clients a day, six days a week. The same questions have been coming up for years. To save you and your tax preparer some time and maybe quash a few misconceptions, here are answers to four of the questions I hear most often.

1. Isn’t a bigger refund better?

The simple answer is “no.” The important line on your tax return is the “Tax Liability” line, not the “Refund or Balance Due” line. A smaller tax liability is always better. Taxpayers should plan Continue reading Four Top Tax Season Questions →

Look for higher premiums, more wellness plans in efforts to cut costs.

By Martha Lynn Craver, Associate Editor, The Kiplinger Letter

Employers are taking matters into their own hands as they get ready for the 2011 benefit plan year. There’s a growing recognition that the health care bill passed by Congress on March 21 won’t help lower costs in the short term, forcing firms to act on their own if they want to survive. In fact, many employers believe the pending health bill will only add to their problems. “Health reform will result in not only increased costs for employers, but less generous benefits for employees,” says Helen Darling, president of the National Business Group on Health.

Most companies will make workers pay a bigger share by raising premiums, deductibles and copayments. These increases will affect both the medical and pharmacy plans. Surcharges for providing health care coverage to working spouses will also increase, to encourage Continue reading What Firms Will Do With Health Care Reform →

The new law will mean huge changes for businesses, insurers and individuals.

By Martha Lynn Craver, Associate Editor, The Kiplinger Letter

March 23, 2010

The health care bill is more than two thousand pages long — with hundreds more to come from regulators filling in the details. It will literally take years before all the details are set and everyone can see how the plan will affect their particular situation. But here are 10 commonly asked questions that can be answered now: Continue reading Health Care: 10 Frequently Asked Questions →