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Showing posts from September, 2018

THURSDAY TAX TIDBITS

IRS Announces Major Changes to Form W-4!

Earlier this week the IRS and Treasury Department announced that the major changes for Form W-4 are to be delayed until the tax year 2020. These changes were planned to be made in 2019, however, after sharing the drafted version, the IRS and Treasury Department listened to feedback and decided to postpone the changes. Minor changes will be made to the 2019 W-4, but it will remain largely consistent with the present draft. 

In the meantime, it is important for individuals to learn how these changes may impact their personal finances. The IRS encourages taxpayers to use the paycheck checkup at https://www.irs.gov/payments/tax-withholding and review their withholding situation. By doing so, you can ensure withholding is not under-withheld or over-withheld. If under-withheld, there is a chance of having to pay taxes at the end of the year or receiving a smaller refund.

Don't ignore this issue until it is tax season. For more questions on how this …

THURSDAY TAX TIDBITS

PSA: Sales Tax Warning

Have you received one of these notices with your online order?


Confused about what this is? Let us help you! Last year, Washington state imposed a new bill to increase sales tax revenues. Out-of-state sellers are required to inform Washington State consumers of sales tax that is due on any purchases. They are required to attach this disclosure to applicable purchases if not, they are susceptible to hefty penalties. However, this only applies if the out-of-state seller has retail sales to Washington customers of more than $10,000. The notice sellers must provide need to inform Washington purchasers that:
Sales or use tax is due on certain purchasesWashington requires the purchaser to file a use tax returnThe notice is required under RCW 82.13.020(2)(a)(i)This bill was signed in July 7, 2017, and started to be enforced on January 1, 2018. Many Washington purchasers are uninformed and unaware about these notices or change in the bill. For more questions on how this …

THURSDAY TAX TIDBITS

6 Steps to Starting Your Business!

Do you have a great idea that you know will be a successful business? Or do you have the dream to open a small business, but don't know how to start? I get it, it's scary and overwhelming to think about everything you need to do to get started! Here is a list of the 6 steps you need to take to make your idea and dream into a reality:


Conduct Market ResearchMarket research will tell you if there’s an opportunity to turn your idea into a successful business. Gather information about potential customers and businesses already operating in your area. If you are unsure about your innovative ideas, we will provide honest feedback and help you dream of an idea you are passionate about!

Create a Business Plan

Your business plan is the foundation of your business. Cunningham Accountants will help you create a roadmap for how to structure, run, and grow your new business. We want to help you start your business, but your company's growth is important t…

THURSDAY TAX TIDBITS

Why You Should Turn Your Business Into An S Corp!

Are you thinking about starting your business or do you think your business couldn't be running any better? Whatever your business ownership position is, start thinking about turning your business into a corporation. An S Corp is a: "is a closely held corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code." Being an S Corp protects your personal liabilities from any business losses. There are more benefits to becoming an S Corp, such as tax and deductibility benefits. Here are some reasons why you should consider becoming an S Corp:


❖Save money on self-employment tax
❖W2 at year end
❖Deductibility of wages & payroll tax, employer portion
❖Rent expense paid to the shareholder 
❖Liability protection
❖Perpetual existence
❖Costs

To understand how this applies, the table below demonstrates the accounting differences between a Sole Proprietorship and an S Corp:


Start growing …