It’s a trend: software moving to a monthly or yearly subscription model rather than a single download you can use indefinitely. QuickBooks is the latest company to transition. At the end of September, the popular accounting software began charging a low monthly payment for its online service rather…
The IRS has announced the new retirement plan numbers for 2022. Retirement limits for 401(k) and similar plans are up. The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased to $20,500, up from $19,500. …
Below are federal payroll tax rates and benefits contribution limits for 2022. Social Security tax In 2022, the Social Security tax rate is 6.2% for employers and employees, unchanged from 2021. The Social Security wage base is $147,000 for employers and employees, increasing from $142,800 in 2021. Self-employed people…
Do you have employees or independent contractors? It’s not always an easy question to answer, but the IRS insists you get it right, because there’s a huge difference in how you should treat them. Fortunately, the IRS has some guidance. The government recognizes five different kinds of…
Virtual Currencies aka Cryptocurrency such as Bitcoin and Ethereum continues to grow with more transactions occurring in today’s market and more crypto assets being mined for investment. Chris Cheng, Tax Supervisor at LMC and an IRS Enrolled Agent (EA), answers some frequently asked questions about cryptocurrency transactions and…
In the spirit of giving this holiday season, LMC is proud to join with City Harvest of NYC to help fight hunger. Today, City Harvest is New York City’s largest food rescue organization, helping to feed the more than 1.5 million New Yorkers who are struggling to…
LMC is pleased to announce the formation of our Tax Controversy Group to the Firm’s expanding line of service groups for our clients. Led by LMC Tax and Legal Manager, David Neuman, JD, the main objective of the group will be to help clients prevent disputes before they…
The end of the year always means the possibility of last-minute tax changes, and this year, that’s especially true. Some of the new legislation may mean major changes starting in the new year, but other proposed bills, such as new capital gains and qualified dividend tax rates, may…
In COVID Tax Tip 2021-123, the IRS clarifies some of the confusion surrounding the powerful but complex Employee Retention Credit. The IRS is addressing changes made by the American Rescue Plan Act of 2021 that apply to the third and fourth quarters of 2021. These changes include: …
COVID-19 has triggered many brick-and-mortar entities to to either strengthen or create their online presence. This, in turn, has forced them to address sales tax complexities they didn’t have to contend with when all sales were local. Understanding sales tax thresholds The internet sales tax requirement is…
