FBAR filing deadline is rapidly approaching

ABA Tax Accounting | International Tax Services | St. Paul, MN Accounting Firm 

EXPATRIATE TAX – U.S. residents with $10,000 or more in foreign bank accounts must file a Report of Foreign Bank and Financial Accounts by the end of the month or risk substantial fines.

The FBAR (Report of Foreign Bank and Financial Accounts) is due the year after the year that the $10,000 threshold in met. The FBAR due date cannot be extended and failure to file an FBAR may result in civil and/or criminal penalties. Considering a Tax Professional? For no obligation free consultation contact us today!

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Is withholding required on damages or settlements for claims for personal physical injuries or sickness?

ABA Tax Accounting | Income Tax Service for Small Businesses | St. Paul, MN Accounting Firm

Payroll Service For Small Businesses - Generally, no. The amount of any damages (other than punitive damages) received as the result of a suit or settlement agreement on account of personal physical injuries or physical sickness are excluded from gross income. Accordingly, FICA, FUTA and income taxes are not withheld on such damages. Considering a Tax Professional? For no obligation free consultation contact us today!

ABA Tax Accounting

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Is federal income tax withholding required on deferred compensation payments?

ABA Tax Accounting | Payroll Service for Small Businesses | St. Paul, MN Accounting Firm
Yes. If the distribution is an eligible rollover distribution, 20% withholding is required, unless the distributee chooses to make a direct rollover. For distributions that are not eligible for rollover, nonperiodic distributions are subject to withholding at a flat rate of 10%, while the withholding on periodic distributions is the amount that would be withheld if the distribution were wages paid to an employee for the appropriate payroll period. With regard to distributions that are not eligible to be rolled over, the participant may make an election to waive withholding. This election is not available for eligible rollover distributions. Considering a Tax Professional? For no obligation free consultation contact us today!

ABA Tax Accounting

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Are tips subject to employment taxes?

ABA Tax Accounting | Payroll Service for Small Businesses | St. Paul, MN Accounting Firm
Are tips subject to employment taxes? Yes. However, tips paid in cash and received by an employee are exempt from FICA, FUTA and income tax withholding if the aggregate amount of tips received during any calendar month is less than $20. Generally, an employee is required to report tips to his or her employer by the 10th day of the month following the month in which the tips were received. The employer must then report and withhold FICA and income taxes on tips that are reported by the employee from non-tip wages paid to the employee. To the extent the employee has failed to report required amounts, or if the amount required to be withheld exceeds the employee's other wages or funds, withholding is not required. . Considering a Tax Professional? For no obligation free consultation contact us today!

ABA Tax Accounting

651-621-5777 After Hours: (612)424-1540

info@abataxaccounting.com

http://www.abataxaccounting.com/smallbusinessaccounting.php

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Is there a ceiling on the amount of compensation subject to employment tax withholding?

ABA Tax Accounting | Payroll Service for Small Businesses | St. Paul, MN Accounting Firm
From Payroll Service For Small Businesses - Yes, for some of the taxes. Compensation in excess of the Social Security wage base ($113,700 for 2013; $110,100 for 2012) is exempt from the Social Security portion of FICA, but there is no limitation on the amount of wages that are subject to the Medicare portion of FICA. FUTA tax must be paid on the first $7,000 of taxable wages paid during a calendar year. There is no wage base limitation that applies to income tax withholding. Considering a Tax Professional? For no obligation free consultation contact us today!

ABA Tax Accounting

651-621-5777 After Hours: (612)424-1540

info@abataxaccounting.com

http://www.abataxaccounting.com/smallbusinessaccounting.php

www.abatax81.blogspot.com

www.abataxaccounting.wordpress.com