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2017 1099 & W-2 Filing Requirements

Posted by Admin Posted on Dec 14 2017

 

2018 is getting closer & closer - It's time to gather year-end items!  Below we have listed items that we find most important for the time being... If you're a client of Hyde & Co., please review carefully only the items that apply to you.  You should have (or will be) received a packet in the mail to help assist you with this information.  Should you have any questions, don't hesitate to give us a call!

 

Form 1099s

Under the IRS regulations, if any reportable payments were made during the year, Form 1099s must be filed & the 1099 amounts must be reported on the company's business tax return or your Schedule C.  If Hyde & Company is preparing your 2017 1099s, the cutoff date to turn information to our office is January 12.  The filing due date is January 31, 2018.  In order to prepare a 1099, you would need the following information:

  • Vendor Name
  • Vendor SSN/EIN
  • Total amount paid in 2017
  • Mailing Address

 

 

Personal Use of Company Auto (C Corporations & S Corporations Only) - Reported on W-2

Taxable fringe benefits from the personal use of a company automobile must be included as compensation on a W-2 and other payroll tax forms.  An employee is responsbile for the employee portion of the Social Security and Medicare taxes.  Federal income tax should also be withheld.  Here is the information that needs to be reported:

  • Description of car (make, model, year)
  • Total miles driven in 2017
  • Personal use %

 

 

Health Insurance Premiums Paid by the Company (S Corporations Only) - Reported on W-2

Accident & health insurance premiums paid by an S Corporation on behalf of a greater than 2% shareholder-employee must be included in the sharedholer's taxable income, subject to income tax withholding.  However, the premiums are not subject to Social Security, Medicare & unemployment taxes if insurance coverage was offered on a nondiscriminatory basis to all employees.  The portion of the premium paid by the shareholder-employee is not included in compensation.  The following information is needed for W-2 reporting:

  • Full name
  • SSN
  • Amount paid by S Corp in 2017

 

 

Filing requirements for 1099s & W-2s

 

 

2017 Is Almost Over - Are You Prepared?

Posted by Admin Posted on Dec 07 2017

 

As each year draws to a close, we advise you to revisit your tax management strategies and plan as judiciously as possible for the remainder of the year and, in some cases, for the years ahead.  However, with proposed tax reform legislation making its way through Congress, things are more complicated this time.  The final package, if enacted, will very likely bring changes that could affect both your business (if applicable) and personal tax planning.

 

In anticipation of lower tax rates in 2018, the general guidance for most individuals is to defer income until 2018.  Furthermore, the possibility of many deductions being repealed in 2018 makes it imperative to accelerate those into 2017.  The deductions that are at risk for 2018 include the following:

  • State and Local Income Taxes – because this tax break is likely to be eliminated, mail your 4th quarter estimate due in January by December 31st to claim the deduction in 2017.

 

  • Residential Real Estate Taxes – with a possible $10,000 cap or even a complete repeal, prepay taxes on your home this year.

 

  • Charitable Contributions – a potential increase in standard deductions will de-value or even eliminate the tax benefit, so charge your credit card or mail the checks by December 31st to ensure a write-off on your 2017 return.

 

  • Medical Expenses – in light of a possible repeal, consider paying for elective procedures by December 31st if your 2017 medicals are close to or exceed 10% of your adjusted gross income for the year.

 

  • Unreimbursed Employee Business Expenses – since the deduction is most likely to be removed, consider making payments before December 31st.

 

Additionally, other special situations may affect your tax planning such as the cutback in itemized deductions for upper-income individuals, alternative minimum tax, capital gains, and re-characterization of Roth IRAs.  We can help you decide on the most prudent course of action related to those items. 

 

There is still time to set up an appointment for your personal year-end tax planning!  We recommend a meeting if you have had any major changes during 2017 or are expecting major financial changes in 2017 or 2018, such as retirement and inheritance.  Contact our office at 405-842-0028 or email admin@hccpas.net to schedule your appointment.

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Nancy Hyde, CPA, CVA, CEPA

CEO & President, Hyde & Company CPAs


 

 

Stop to Help - Listen Carefully - Get Involved

Posted by Admin Posted on Dec 01 2017

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Hyde & Company’s character trait to practice for the month of December is COMPASSION

 

The holidays are considered to be a time of joy, peace, and caring - So it's easy to use the month of December as a time to reflect on how we show compassion towards others.  This month - and moving forward - our firm is actively looking to improve our compassion for our city.  We often think of compassion as a feeling or a desire to help someone in need, when in reality, compassion is taking that feeling and moving it forward into action.  You can always find people that are willing to help...it's those who are willing to take it a step further that show true compassion for others...

 

1. STOP TO HELP

When was the last time that you needed help and someone stopped and helped you (and vice versa)?

Who is someone you know who is always willing to lend a helping hand? What are some of the ways they help others?

2. LISTEN CAREFULLY

Not all problems are obvious, which is why it is important to listen before taking action - Listening shows you care.

What are some questions you can ask to find out how you can help?

When have you taken the time to listen to someone else?

3. GET INVOLVED

Compassion is more than writing a check - It's getting involved personally.

 Why is it important to actually do something once you notice a need?

What are some places around town that could use your help?

 

 

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The information above was provided by Strata Leadership.  Visit the their website to learn more about their development program for businesses used for building teamwork, improving communication and developing leaders.

Why Your Business Needs an Accounting Firm

Posted by Admin Posted on Nov 08 2017

Small-business owners flourish from creating a “do-it-yourself” atmosphere; it’s what drives their entrepreneur spirit.  However, the more you take on, the less you’ll successfully accomplish down the road.  Accurate & effective accounting is the most important area for keeping your company profitable and flourishing.  Professional accountants can help your company move forward and help it throughout its stages of growth.

 

Startup Phase

There are many things to think about when you’re starting out, including creating a business structure, setting up bank accounts, and complying with Government regulations.  You might think it’s too early to hire an accountant during this phase, but the way you set up your operations can impact your future success.  We (accountants) can analyze your business plan and help you determine the business structure that fits you best.  Also throughout this phase, we can assist you with making sound financial decisions so you don’t have to spend more money to correct mistakes later.

In the early years of your small business, income and expenses may be minimal, and it may feel as though there isn’t much work for an accountant to do.  However, certain ongoing affairs still need to be overseen, such as:

  • Ensuring employees & independent contractors are classified correctly
  • Correct processing of payroll and payroll taxes
  • Creating appropriate timelines for sending W2s and 1099 forms

 

 

Audit Requirements

Not every small business is required to conduct an audit, but unless you consult with an accountant on a reoccurring basis you might not know one is needed until it’s too late.  ALL businesses should comply with local Generally Accepted Accounting Principles (GAAP).  Contact our office to ensure your records are compliant.

 

 

Lenders NEED Financial Statements

At some point your small business will need additional funding for expansion, new equipment, etc.  Your selected lender will most likely request an updated financial statement for your company and yourself (as the owner).  By having us prepare your financial statements on a reoccurring basis, you can have these readily available for any lender and can increase your chances of getting approved.

 

 

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Ask Yourself:

Does your business planning match your financial forecast?

Have you read the tax code?

Do you have enough time to take care of all the accounting duties yourself?

Are your accounting entries classified correctly?

What do auditors look for when conducting an audit?

Do you know what needs to be in a financial statement?

Does the employee you have handling accounting for your business know the answers to the questions above?

 

 

If you answered "no" to any of the questions above, you can benefit greatly from our services.  We can provide your business with personal services, superior knowledge and valued integrity.  Contact us today!

 

 

Seek Understanding, Ask For Advice, Apply What You Learn

Posted by Admin Posted on Nov 01 2017

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Hyde & Company’s character trait to practice for the month of November is WISDOM

 

What's really the difference between knowledge & wisdom? Most people interpret knowledge as information you learn or gain via education & life experiences; Wisdom comes from how we use that knowledge in moments of opportunity. Learning from past experiences & applying what you've learned from those situations can give you the wisdom you need to become successful in life. Do you learn from your mistakes or do you repeat them over & over again? This month our firm is looking to improve our wisdom by practicing these steps:

 

1. SEEK UNDERSTANDING

The more we understand the process of life, the better we can work & live.

What are some cause & effect relationships you see every day?

What is something that occurred in the past that taught you a good lesson?

2. ASK FOR ADVICE

A person who thinks they know everything rarely does, but a wise person realizes the value of good advice.

Who is someone you can ask for advice?

What can you avoid by asking someone you trust for advice?

3. APPLY WHAT YOU LEARN

Wisdom is nonexistent if you never apply what you've learned from past experiences. The real test of wisdom is applying what you learn.

 When did you make a mistake & learn from it? How did making the mistake actually help you later on?

What are some things you have learned over time that have helped you make better choices & decisions?

 

 

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The information above was provided by Strata Leadership.  Visit the their website to learn more about their development program for businesses used for building teamwork, improving communication and developing leaders.

Red Flags for Potential Fraud

Posted by Admin Posted on Oct 30 2017

The most common phrase business owners or managers say after news comes out of an employee committing fraud at their workplace is “How did I not see this coming?”  Dealing with embezzlement is a messy situation.  Although our firm can handle these situations, we never want our clients to experience it.  In other words: We encourage all of our clients to be PROactive, not reactive!

 

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How does fraud occur? Generally, it takes place when an individual with the ability to abscond with assets or manipulate financial statements and go undetected.  Most cannot rationalize taking money from their employer – but believe it or not it DOES exist!  A fraudster creates a justification for the actions they take (not enough pay, someone in their family is sick, etc.).  These things often occur due to inadequate or ineffective internal controls.  The list below is not intended to be looked at as all-encompassing or predictive of fraud, but they are the most common red flags seen during fraud investigations:

 

Employee with Longevity & Increasing Level of Trust

Employee that Does Not Take Vacations

Single Employee in Charge of Several Processes

Lifestyle Exceeding their Rate of Pay

 

Our firm’s goal is to help teach our clients how to spot these “red flags” and worry less about potential fraud.  Adequately functioning internal controls (both preventative and detective) are the best way to prevent fraud.  At the same time, an owner or manager can be mindful of telltale signs.  If someone in your organization exhibits these red flags, contact us today!

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  We can help minimize your company's risk, protect your assets & avoid potential loss related to embezzlement or theft!  Lou Davis, CPA, CFSA, CGMA, Senior Audit Manager of Hyde & Company CPAs, has over 30 years of experience working closely with clients and handling many cases of fraud and embezzlement.  As a consultant and advisor, Lou can assist in making your internal controls more effective while creating new policies and procedures to implement in your workplace.

Character Trait for October

Posted by Admin Posted on Oct 04 2017

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Hyde & Company’s character trait to practice for the month of October is DEPENDABILITY

 

Everyone needs somebody they can depend on - This goes double for business partnerships.  We would all rather work with dependable people than to feel unsure about important matters.  We are forever grateful to our clients that show their faith in our ability to resolve their most important tax, audit, accounting and accounting issues each and every year.  That being said...we are always looking to improve.  Dependability is the most important character trait we must possess, so we hold it to the highest standard.  This month we will be looking to do just that by highlighting these points:

 

1. BE CAREFUL WHAT YOU PROMISE

Recognize each situation as unique & recognize the seriousness of giving your word.

Why is it important to be honest about what you can deliver & when?

What are some questions you can ask to clarify the expectations others have of your task?

2. GET IT DONE

Break down each task...Don't procrastinate...Finish the Job.

Recognize the value of being a person who keeps his or her word & what the impact could mean in a "bigger picture" situation.

3. COMMUNICATE

When it looks like you might miss a deadline or not keep a promise, address & communicate the issue to all involved parties ASAP.

 Why is it important to let others know when you can't make the deadline?

Why is it important to be a person that others can trust?

 

 

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The information above was provided by Strata Leadership.  Visit the their website to learn more about their development program for businesses used for building teamwork, improving communication and developing leaders.

SERVICE SPOTLIGHT: Internal Audit

Posted by Admin Posted on Sept 25 2017

 

Internal Audit Expertise

In order to cover the many risks facing companies today, Hyde & Company CPAs offers a vast array of services structured to provide outsourced internal audits.  To assist you in managing these risks, we have developed practical, risk-focused programs targeting your specific internal audit needs.

We employ the use of "subject matter experts" - designated individuals performing in their specific field of expertise - to provide you with a wide range of skills and industry experience for a customized audit approach.

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Our proprietary risk-based assessment audit model, customized audit approach and experienced staff work in synergy to design an effective and customized audit program to suit your needs. 

 

Turn-Key Solutions

Hyde & Company has developed a unique turn-key, outsourced internal audit process that is inclusive of its proprietary:

  • Audit sample selection methodology
  • Audit programs for various areas
  • Audit reporting & rating methodology
  • Audit risk assessment methodology
  • Audit engagement process

 

Full-Range Services

As Hyde & Company is structured to provide outsourced internal audit services to your company, we are able to dedicate our resources to constantly evolve our audit process to keep up with the risks facing your company today AND tomorrow.  Our cutting-edge methodology & dedicated staff enable us to provide a full range of audit activities applicable to all facets of your business, including:

  • Strategic Planning
  • Financial Reporting
  • Risk Management
  • Internal Controls
  • Tax Planning
  • Succession Planning

 

 

We understand that outsourcing your internal audit needs is a difficult step for many companies.  Our service offers flexibility & control to ensure compatibility with your goals, professionals that will assist in strengthening your systems, & the same commitment accorded to the most important of clients.

To learn more, contact Lou Davis, Senior Audit & Accounting Manager at Hyde & Company CPAs.

Please visit the archive for previous articles.

This blog site is intended for educational purposes directed towards our clients and provides general information about tax, accounting and business related topics.  It is not intended to provide professional advice.  We are not investment advisors. Accordingly, we suggest that you seek the advice of qualified investment advisors appropriate to each investment being considered. By using this blog site, you understand that there is no CPA/client relationship between you and Hyde & Company CPAs, P.C. or its employees.  The blog and website, including all contents posted by the author(s), should not be used as a substitute for competent counsel from a qualified advisor in your state.  Hyde & Company CPAs, P.C. posts are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes.  Tax rules are frequently changed, added, amended, and/or left to expire – always check with your CPA or accountant regarding the most current tax rules and how they apply to your specific tax issue