Retirement Plans for Self-Employed People Highlights of plans that self-employed people can use to save for retirement on a tax-deferred basis Voluntary Correction Program Submissions - Common Mistakes Avoid common mistakes in submissions to fix plan errors Higher Education Organizations Have to Comply with the Universal Availability Rule New Employee Plans Compliance Unit project focuses on whether certain 403(b) plans comply with the rule Are You Covered by an Employer’s Retirement Plan? Determine whether you are covered by a retirement plan at work, which affects your ability to deduct traditional IRA contributions SEP Plans in a Partnership Partners are employees [...]

Administrative, Procedural, and Miscellaneous 26 CFR 601.602: Tax forms and instructions. (Also: Part 1, §§ 1, 223.) Rev. Proc. 2011-32 SECTION 1. PURPOSE This revenue procedure provides the 2012 inflation adjusted amounts for Health Savings Accounts (HSAs) as determined under § 223 of the Internal Revenue Code. SECTION 2. 2012 INFLATION ADJUSTED ITEMS Annual contribution limitation. For calendar year 2012, the annual limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,100. For calendar year 2012, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage [...]

DirectPay has partnered with ADI Time to offer you the optimal experience in timeclock solutions. There are several payroll time challenges any organization must face: Eliminating Time Theft - ADI Time helps you time theft by consistently and automatically applying rounding rules and restriction capabilities, as well as eliminating “buddy punching” is used in conjunction with our biometric timeclocks. Ensuring compliance - It is vital that an organization’s payroll system comply with legal frameworks as well as other industry-specific requirements. Getting accurate, real-time reporting - Accuracy is the key to payroll. ADI Time not only provides historical information it also [...]

Times are tough. As a business owner, would eliminating a large down payment for your workers' compensation insurance interest you? You know how important it is to manage cash flow on a day-to-day basis and that's not always easy when you have to come up with a down payment that may be as much as 25% of the premium for your workers compensation policy. Good News, DirectPay Payroll Services AND The Hartford have a solution! XactPAY® allows you to pay your Hartford Workers' Compensation premium based on actual payrolls and one payroll period at a time. Your cash flow won't [...]

Before we can change the name of your business in our system, your name change needs to be made official with the IRS. If you you need to change the name of your business, or plan to in the near future, please see the instructions below from the IRS: http://www.irs.gov/individuals/article/0,,id=148089,00.html ___ Business Name Change Business owners and other authorized individuals can submit a name change for their business. The specific action required may vary depending on the type of business. If the EIN was recently assigned and filing liability has yet to be determined, send Business Name Change requests to [...]

U.S. law requires companies to employ only individuals who may legally work in the United States – either U.S. citizens, or foreign citizens who have the necessary authorization. This diverse workforce contributes greatly to the vibrancy and strength of our economy, but that same strength also attracts unauthorized employment. E-Verify is an Internet-based system that allows businesses to determine the eligibility of their employees to work in the United States. E-Verify is fast, free and easy to use – and it’s the best way employers can ensure a legal workforce. To enroll in E-Verify, please visit http://www.dhs.gov/e-verify

Changes to Flexible Spending Arrangements Effective Jan. 1, 2011, the cost of an over-the-counter medicine or drug cannot be reimbursed from Flexible Spending Arrangements or health reimbursement arrangements unless a prescription is obtained. The change does not affect insulin, even if purchased without a prescription, or other health care expenses such as medical devices, eye glasses, contact lenses, co-pays and deductibles. The new standard applies only to purchases made on or after Jan. 1, 2011, so claims for medicines or drugs purchased without a prescription in 2010 can still be reimbursed in 2011, if allowed by the employer’s plan. A [...]

Repeal of Expanded Information Reporting Requirements The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 eliminated new information reporting requirements that were created by previous legislation. The Patient Protection and Affordable Care Act of 2010 expanded information reporting to include payments to corporations, “amounts in consideration of property,” and “other gross proceeds” made in the course of a trade or business (including operation of a governmental entity), beginning in 2012. The new law repeals these requirements. You are not required to file Form 1099-MISC for these payments for any year. Existing information reporting requirements remain [...]

The procedures for compensating yourself for your efforts in carrying on a trade or business will depend on the type of business structure you elect. Below are topics that frequently arise when new business owners ask the Internal Revenue Service questions about paying themselves. Corporate officers Partners Dividend distributions Form 1099-MISC or Form W-2 Treating employees as nonemployees Shareholder loan or officer s compensation? Reasonable compensation Draw account Corporate officers An officer of a corporation is generally an employee, but an officer who performs no services or only minor services, and who neither receives nor is entitled to receive any [...]