It isn’t a lot but every little bit helps.
The Federal Unemployment Tax Act surcharge of 0.2%, which was originally enacted in 1976, expired on June 30, 2011.
This means that the FUTA rate for employers went to 6.0% starting on July 1, 2011.
The IRS says that they are currently working to revise Form 940,
Employer’s Annual Federal Unemployment Tax Return, to accommodate the
two different rates for 2011 and they say that the form will be
available before the Jan. 31, 2012, due date.
The expiration of the surcharge will not affect current or future
unemployment benefits but slightly reduces what employers have to pay.
That is always good news!
We previously reported that new and very onerous requirements would be added beginning in 2012 for business 1099 reporting. We thought at the time that the law looked likely to be repealed and indeed it has been repealed.
According to the IRS website: The Comprehensive 1099 Taxpayer
Protection and Repayment of Exchange Subsidy Overpayments Act of 2011
eliminated new information reporting requirements that were created by
previous legislation. You can read it at the IRS website.
The relevant part is that only existing information reporting
requirements remain in effect ie: Payments of $600 or more for
nonemployee compensation made in the course of a trade or business are
generally required to be reported on Form 1099-MISC. Certain payments to
corporations are required to be reported. See the Instructions for Form
1099-MISC for more information.
Good news for small business owners!
States are continuing to increase their efforts to collect Use Tax
on items that individuals buy from out of state sellers. When an
individual buys stuff on the internet or mail order and the seller is
from another state Sales Taxes are often not paid by the buyer or
collected by the Seller. For many years, despite the law in many states,
people have considered it to be a discount. Enforcement still seems to
be a problem for the states but they are getting more and more active
because of the increase in on line purchasing. You might have noticed
that for the last few years I and other Tax Preparers have been
routinely asking abut out of state purchases. This is just something to
keep in mind. Any perceived discount for out of state buying is really a
bit of a risk. Here is what California Hs to say About it.