Tax

As a small business owner, you are required to issue a Form W-2 Wage and Tax Statement to all of your 2021 employees and a Form 1099 to all of your independent contractors by January 31, 2022. You should verify employees’ information for their W-2s. This includes names, addresses, and Social Security or individual taxpayer identification numbers. Indicate to PPG Partners or your payroll service provider — whoever prepares your W-2s — any changes or incorrect information as soon as possible. Form 1099 is used to report amounts paid to independent contractors. If you hired independent

The various life expectancy tables used to calculate required minimum distributions (RMDs) from qualified retirement plans, IRAs, and nonqualified annuities have been updated for 2022. These updates have been done to reflect the increase in life expectancies experienced, as the current tables came out in the early 2000s. An RMD is the minimum amount you must withdraw from your retirement account each year. What do these changes mean? In short, the divisors are increasing, which means the amount required to be withdrawn is decreasing. Since smaller distributions will be required to be taken out

If you received any advance Child Tax Credit payments in 2021, keep your eye out for a letter from the IRS in January 2022. This notice, “Letter 6419 Child Tax Credit,” will provide the total amount of advance Child Tax Credit payments that were disbursed to you during 2021. This letter is needed for your 2021 taxes. If PPG Partners prepares your individual tax returns, be sure to send this letter to us. You can forward the letter or a copy of the letter to us right away via email, mail, or fax, or send it in with your tax organizer and other tax documents. Whichever option you choose, please

A valuable tax credit is available to certified businesses that hire long-term unemployment recipients and other groups facing significant barriers to employment. The Work Opportunity Tax Credit, which has been extended through 2025, encourages employers to hire members of 10 targeted groups. Of significant note due to the COVID-19 pandemic, one of these groups is those that have been unemployed for at least 27 consecutive weeks and received unemployment benefits during part or all of that time. The other groups are: Temporary Assistance for Needy Families (TANF) recipients; unemployed

The IRS is currently sending informational-only CP256V Notices to self-employed individuals and household employers that chose to defer paying certain Social Security taxes under the CARES Act. The new notice is a reminder that the first installment of deferred Social Security taxes is due by the end of the year. The CARES Act allowed self-employed individuals and household employers to defer the payment of certain Social Security taxes on their Form 1040 for tax year 2020 over the next two years. Half of the deferred Social Security tax is due by Dec. 31, 2021, and the remainder is due by Dec

September 15, 2021, is the deadline for third quarter estimated tax payments. This generally applies to people who are self-employed and some investors, retirees and those who may not normally have taxes withheld from their paycheck by their employers. The U.S. tax system operates on a pay-as-you-go basis. This means taxpayers are to pay most of their tax during the year, as they earn or receive income. Therefore, individuals not subject to withholding may need to make quarterly estimated tax payments. If a taxpayer underpaid their taxes, they may have to pay a penalty. This applies whether

Following the federal income tax treatment of business-related meal and entertainment expenses has been a rollercoaster ride in recent years. Here we will get you up to speed on the current deductions (or lack thereof) available for your business. 100% deduction: Business-related food and beverages provided by restaurants in 2021-2022 The CAA, the 2020 COVID-19 relief bill, included this temporary change. The “provided by” language means both sit-down meals and take-out. This does leave some unanswered questions, such as whether this includes airport lounges or bars that serve food. The IRS

Many states have annual sales tax holidays, during which certain items the state wants to promote the purchase of (like school supplies, emergency preparedness supplies, or energy efficient appliances) can be purchased sales tax free. Unfortunately, Wisconsin, Illinois, Michigan, and Minnesota do not currently have any scheduled sales tax holidays in 2021.

Goodbye Tax Season! But Wait, What Records Should I Keep? Unless your tax return is extended, the tax filing deadline has come and gone – time to breathe a sigh of relief! But before you throw all of your tax documents up in the air to celebrate, we need to discuss just how long you should keep that information in a safe and secure place. When we talk about tax documents, we’re talking about a copy of the tax returns that were filed, along with “supporting tax return documents” — W-2s, 1099s, receipts, logs for mileage, or any paperwork that will support your tax deductions or credits that you

The Wisconsin Department of Revenue is reviewing previously issued Certificate of Exempt Status (CES) numbers. Qualifying nonprofit organizations will be issued a new 15-digit CES number beginning with 008. Six-digit CES numbers will be discontinued. During the review, retailers may accept a 6-digit or 15-digit CES number from nonprofit organizations claiming exemption from Wisconsin sales and use tax. The department will notify retailers when the review is complete and identify a date when nonprofit organizations may no longer provide a 6-digit CES number to make exempt purchases. Be sure to