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Summer (July) 2010 Newsletter
Important
Dates:
July 1
= NEW Tanning Salon Excise Tax, see below
July 14 = Country Sampler Picnic at the Northland Arboretum
July
15 = Monthly Payroll Tax Deposits
July 20 = Monthly Sales Tax
July 31 = Quarterly Payroll Tax Deposit
for 940/Fed Unemployment
July 31 = Quarterly Payroll Reports (941, MN, MN Unemployment)
Payroll Tax
Credit for
Hiring Unemployed Workers (HIRE)
IRS Form W-11
IF your business adds a
new employee (after Feb. 3 and anytime during the rest of 2010)
and IF
that person was unemployed for sixty day prior to this hire
(high school and college students qualify for this) --
THEN, your business may be able to save 6.2% of their wages
during 2010.
This is the employer's share of Social Security taxes. Ask your new hires to fill out IRS Form W-11
and notify your payroll provider.
If you are preparing
your own quarterly tax forms on QuickBooks - Contact
us for assistance in showing this credit on your Form 941.
[These same employees may also qualify
your business for a $1,000 new hire retention credit on your
2011 income tax return (prepared in early 2012). Each
'previously unemployed' worker retained for at least a year will
count toward this credit.]
QuickBook Quickies - August Special - Only $10.00
Receive 50 minutes of
on-line QuickBooks Consulting - a $37 value for ONLY
$10.00.
Select from: Tuesday, August 3 at 9am OR
Tuesday, August 10 at 9am or Tuesday, August 17
at 9am or Tuesday, August 24 at 9am. Please prepay with a
check or with PayPal. First reserved and paid is first
served. One Special per business, please.
Call or e-mail for more information.
New Tanning Salon Excise Tax starts July
1, 2010
The 2010 Health Care Act has created a new 10% federal excise
tax on indoor tanning services starting July 1, 2010. The tax
applies to services provided regardless of whether the service
was prepaid or paid with a gift certificate. Here's a brief
listing of the steps we recommend:
1. Recommend increase tanning
services by 11.1%. If price was $10, new price will be $11.11.
Excise tax will be 10%.
10% of $11.11 is $1.11. Business will pay $1.11 to
government and will retain $10.00.
[Of course, local economic conditions may affect the
ability to raise the price.]
2. Register for EFTPS or Expand EFTPS tax options to include
Form 720, Excise Tax
3. Starting with July 2010 - look at the monthly sales and
calculate 10% of tanning sales.
4. Enter a Bill for this 10% amount. Date this bill the last
day of the month. Vendor: US Treasury.
Account: 10% Excise Tax" (could be either an Expense or a
negative Income account).
5. Quarterly prepare Form 720 and pay the tax.
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