Contractor or Employee? Knowing the difference is important
Too many small businesses have been taxed and penalized for having independent contractors that the IRS believes should be employees. This is even more critical given the requirement to have health insurance. Is a worker an independent contractor or an employee? This seemingly simple question is often the contentious subject of numerous IRS audits. As an employer, getting this wrong could cost you plenty in the way of Social Security, Medicare taxes, and other employment related taxes. Here is what you need to know. The basics As the worker. If you are the worker and you are not considered an
Extension for Form 1095 Reporting What everyone needs to know
Many more taxpayers will see Form 1095’s this year. These forms are required to prove you have had health insurance coverage for the year. Due to the vast amount of work required to create this form, the IRS is granting a delay in getting versions of this form to taxpayers. Here is what you should know For 2015 tax returns, everyone employed by a company with 50 or more employees will receive a new Form 1095. This form is in addition to the Form 1095’s received by other taxpayers using the Marketplace to purchase their health insurance. You need this
IRS PIN Announcement: DO NOT THROW OUT Identity theft PINs are for 2015 not 2014
Recent notices sent out by the IRS for victims of identity theft refer to tax year 2014 in error. These one-time use PINs are for the 2015 tax year. Here is what you need to know. If you are one of the unfortunate victims of IRS identity theft you will need a one-time PIN to file your tax return. Without this numeric identifier your 2015 tax return will be rejected. The IRS issues taxpayer victims this PIN in a written notice. What has happened IRS notices that have this one-time PIN are hitting mailboxes of identity theft victims right now.
The mileage rates for 2016 are now available and are noted here.
The IRS recently announced mileage rates to be used for travel in 2016. The Business mileage rate decreases by 3.5 cents while Medical and Moving mileage rates are lowered by 4.0 cents. Charitable mileage rates are unchanged. 2016 New Mileage Rates Standard Mileage Rates Mileage Rate/Mile Business Travel 54.0¢ Medical/Moving 19.0¢ Charitable Work 14.0¢ Here are 2015 rates for your reference as well. 2015 Mileage Rates Standard Mileage Rates Mileage Rate/Mile Business Travel 57.5¢ Medical/Moving 23.0¢ Charitable Work 14.0¢ Remember to properly document your mileage to receive full credit for your miles driven.