Category Archives: General

Are You Prepared for 2016 ACA Reporting?

The Affordable Care Act (ACA) requires large companies to report its health coverage offerings to the Internal Revenue Service (IRS). This requirement started in January 2015 as part of the Employer Shared Responsibility (ESR) Provisions of the ACA. The reporting of the health coverage is an annual requirement.

Is This Reporting Required for Your Company?

Every Applicable Large Employer (ALE) is required to provide detailed information about the health insurance offered to all of its full-time employees. If the Plan offered is Fully Funded the information to be reported to the IRS includes identification of the ALE, identification of full-time employees to whom an offer of coverage is made, and duration of the offer. If the plan is Self-Insured, then additionally the IRS requires information of the spouses and dependents covered under the full-time employees plan. The definition of full-time is a person working, on average 30 hours each week or working 130 hours per month. An ALE is any company that has 50 or more full-time staff members.

Companies with less than 50 full-time employees are not required under the ESR provision to report this health insurance information. However, under IRS section 6055, small companies that are self-insured are required to report the health insurance coverage of its employees, their spouses and their dependents, even though the employers are not subject to the employer shared responsibility provisions or the information reporting requirements for ALEs. These non-ALEs use Form 1095-B, Health Coverage, and the transmittal Form 1094-B, Transmittal of Health Coverage Information Returns, to meet the information reporting requirements for providers of minimum essential coverage.

ACA Reporting Deadlines

For the tax year 2016, reporting starts in January 2017. IRS Section 6056 requires employers to file forms 1094-C and 1095-C which detail the number of full-time employees you have. These forms also reveal which employees you offered health coverage to during the tax year. These forms have to be filed by February 28, 2017. If your company files the forms electronically, the deadline is March 31, 2017. ALEs that file 250 or more information returns during the calendar year must file the returns electronically.

Every ALE has to give its full-time employees the form 1095-C by February 1, 2017.

Possible Penalties Imposed

Any ALE has to provide minimum essential coverage (MEC) that is affordable to all its full-time employees. If an employer doesn’t meet this requirement, it is subject to penalties. To avoid penalties, the Applicable Large Employer has to offer coverage to at least 95 percent of its full-time employees, their spouses and dependents in 2016.

Other penalties are based on the number of full-time employees that an ALE fails to offer affordable health insurance to. Penalties are also imposed if the health plan fails to meet the minimal actuarial value of at least 60 percent of allowed benefits costs.

Employers also face penalties for failing to file the appropriate forms by the deadline.

It’s important that all large and self-insured employers take steps to meet the IRS reporting requirements for the Affordable Care Act. This is extra work, but it is necessary to ensure that full-time employee get the health coverage they and their families need and is used to report the information the IRS needs to administer the employer shared responsibility penalties. The information is also used to identify individuals who are ineligible for a premium tax credit because they were offered employer-provided insurance that was affordable and provided minimum value.

3 Tips to Avoid a Small Business Audit

Audit is the watch word during tax season and it often strikes fear into the hearts of small business owners. Sometimes an audit is inevitable, but there are some tips and tricks to avoid it.

Just in Case, Triple Check: The first step may sound obvious, but check, check, and recheck your figures. A simple mistake can send up warning signs in the IRS and flag you for an audit. If it helps, have someone else look over all your forms to ensure you’ve filled in all the required information.
The Truth and Nothing but the Truth: once again, this sounds like common sense but that amount of people that overestimate deductions or expenses. Too many deductions or unrealistic deductions will turn heads toward your returns and make an audit a possibility. If your deductions are factual but unusual, provide accurate documentation and/or explanations.
Pay Attention to Directions: When filing forms, read all directions carefully. A surprising amount of mistakes are made simply by missing a step in the directions. Always read through things before starting to fill the forms in.

In any event, it is widely agreed that both e-filing and having a professional prepare your forms is the best trick in avoiding an audit. Contact us to help with your tax preparations!

Online File Taxes: As Easy As 1-2-3

Forget complicated processes to file your tax forms, we’ve got the solution. Our sign up process is as easy as 1-2-3, as we’ve made an effort to keep it as simple as possible. Why complicate things that don’t need to be complicated?

The first step in our sign up process is just that; sign up! Fill in your email address, choose a password, and then confirm your password. We told you this was going to be easy!

The second step is to fill in some basic information. We want to know who you are, where you live, and what your business is/does. This helps simplify both our work and yours. If you have a coupon code this is your chance to enter it. After filling in your information, simply click the next button and you will be taken to our third and final step.

Our third and final step is by far the easiest step of all. All you have to do to complete your account sign up is to confirm your information. Here you will be given the option to say yes, and start filing or say no, and revise your information. Once you select the proper option, you’re free to start entering your forms.

To take part in our services and complete our super easy sign up, check out our website!

3 Things You May Not Know About the IRS

The IRS is one of those government sectors surrounding by mystery and intrigue. We picture stern looking men in dark suits, always with the looming atmosphere of threat surrounding them. As taxpayers, we’ve learned to dread audits with the same fear with which we regard natural disasters. Fortunately, the air of danger and fear surrounding these IRS agents is often exaggerated.

When filing there ARE tricks to avoid an audit: First of all, don’t round your numbers because the IRS views this as an estimation. Secondly, failure to sign a form can flag it as suspicious. Finally, explain large deductions. Essentially, any form submission that sticks out makes you a potential victim for auditing.
Timing is everything: As a small business, timing when your employees receive bonuses and overtime can affect your bottom line. With bonus payments, often these payments coincide with payment of payroll taxes and the two must meet up. This mistake can cause penalty action to be taken. In the event of overtime, this must be tracked on a weekly basis regardless of your payroll schedule.
Be careful to keep your payroll expenses separate from your operating expenses: If the IRS thinks you’re dipping into your payroll funds to pay general expenses for your business, you could be looking at quite severe penalties. Be sure to keep accurate records, and don’t co-mingle finances.

Often the IRS isn’t the unfriendly, frightening figures we fear them to be. If you’re diligent with record keeping, and are honest in your returns, direct contact with IRS can mostly be avoided.

For fast, secure, and mistake-free filing, be sure to check out our website!

Challenges Facing CPA’s

Being a CPA presents a unique set of challenges, much like other professions. During certain times of the year, the duties of a CPA increase exponentially. Tax time is so often stressful for clients, and more often than not, a great deal of that stress is filtered down to the CPA.

Time is against most of us, there’s no denying it. There never seems to be enough hours in the day to get everything done that we need to accomplish. During tax season, if you’re a CPA, chances are you need almost double the amount of hours to get everything finished. Add in a reliance on technology and staff members, and things can start to get dicey in a hurry. Think about it this way, if one member of your office were to slow down, miss a day, or a computer were to break down, what effect would that have on your workflow?

On top of dealing with increasing workload, potential technology failures, and unreliable staff CPAs still have clients to deal with. Some clients expect their CPA to have all the answers, and have those answers immediately. Clients want more and more, but want to pay less and less. CPA firms, in turn, have no choice but to lower their prices to compete with other services and then have to hire less staff. With less staff, workload increases, and a CPA ends up bogged down in their duties.

At Online Files Taxes, we specialize in helping CPAs find enjoyment in their job again. We have a streamlined system that allows you to easily and painlessly e-file hundreds of forms at a time. We cut out the tedious steps of filing, mailing, etc. and allow you to get back to focusing on your clients.

Check out our website for more information about easing your workload!

The Best LinkedIn Groups for Small Business Tax Professionals

Professionals are always looking for ways to expand their reach and communicate effectively with their target audience. As tax professionals, this is no different. Perhaps you’ve looked into potential ways to communicate via the internet with fellow tax professionals and leads. One way you may go about reaching a broader audience is by joining specific groups on LinkedIn. We’d like to showcase our top five LinkedIn Groups:

CPA & Professional Business Group – This is a closed group, which means you must request membership. Once approved, the doors are opened to a group sponsored by the American Institute of Certified Public Accountants. This group weighs in at just over 41,000 members and has been active on LinkedIn since 2008.
Tax Professionals – Luckily, for those looking for immediate access, this is an open group. The Tax Professionals group caters not only to tax professionals but business people. The goal of the group is to provide connection to the two separate groups. Active since 2007, Tax Professionals has in excess of 60,000 members.
CPA Tech Connect – This private group has been on LinkedIn since 2011 and has close to 3500 members. The aim of this particular group is to provide connections to tax professionals and the IT world. It allows for professionals to stay updated in terms of technology.
NATP – The National Association of Tax Professionals group is focused on providing information to both professionals and layman alike. They are a nonprofit group in connection with over 25,000 professionals in all aspects of the taxes field. They are a closed group with just under 10,000 members. The NATP group has been active since 2008.
Everything Small Business – This group opened its virtual doors in 2012 and has only twelve members. Their focus is to provide small business owners with the opportunity to learn about other fields, create joint ventures, or just stay apprised to what’s new in the business world. This group is run by the host of a radio show for small business owners, and thus far the group has remained open.

Whether you’re looking to make connections for future business ventures or you’re just looking to stay informed, any one of the aforementioned groups would be helpful in either capacity. We look forward to contributing valuable information to these groups in the future! Oh, and remember to connect with us on LinkedIn!

3 Year-End Tax Tips

Now’s the time for business owners to take stock in preparation for the end of the 2013 tax season. We want to make sure your I’s are dotted and T’s are crossed, so we’ve compiled a list of the top three tips for your reference.

Confirm your employees W-2 and 1099 information. When it comes to the IRS, mistakes are costly and can add unnecessary red tape to the process. Also notify your tax preparation specialist as soon as possible so they can update the information as well.

Know the difference between employees and independent contractors. The difference is crucial in terms of what your responsibilities are. For more information on the topic, please reference our blog http://bit.ly/18rOYbW.

Know your deadlines. Know when your forms are due to the IRS and know when the forms are due to your employees. Otherwise, there could be penalties accrued for late filing. IRS penalties can be costly, so stay informed of new rules and deadlines.

For assistance with your W-2 and 1099 forms, we are here to provide seamless and efficient filing. Check out our website for more information.

Resources:

http://entrepreneurs.about.com/od/beyondstartup/a/Avoiding-Mistakes-With-Your-Small-Businesss-Tax-Planning.htm

http://www.adp.com/media/press-releases/2012-press-releases/adp-offers-year-end-payroll-tax-tips-to-small-business-owners-and-their.aspx

http://ais-ss.usc.edu/empldoc/faq/faq9.html

Tax Preparation Software: What You Need To Know

Every year we see hundreds of commercials promising simple tax preparation. Yet, many say the process has not been simplified. It’s still complicated and time consuming.

With the looming January 31 deadline for filing W-2s and 1099s, tax preparation software is in review by professionals to evaluate ease of use. According to tax preparation professionals, the best programs feature the ability to mail copies of forms straight to employees. They also tout the benefits of everyone’s main concern – accuracy.

E-filing is considered to be far more accurate than the standard paper filing option. As a business owner, you still have the option to file W-2s and 1099s by hand, but the potential for mistakes increases greatly. Reviewers of 2012 tax software found it rife with problems that caused for a great deal of hassle in software preparation specialists systems. The software also did not allow for business owners to file prior to January 30, causing great inconvenience to businesses across the country.

One system that allows for ease of use is the system offered at OnlineFileTaxes.com. Business owners can effortlessly file thousands of forms with no complications and can eliminate the need to purchase complicated or expensive tax preparation software.

This service also features a print and mail option. We offer the most economical and efficient way to e-file your tax forms. Check out our website for more details.

Tax Season Delayed

Our government recently made history with the first government shut down in over a decade and a half. The shutdown cost close to two billion dollars over sixteen days, due to the amount of workers that were temporarily out of work. Sixteen days may not seem like a great deal of time to those not employed by the government, but it certainly gummed up the works for the tax system. The tax season is going to be delayed by a little over two weeks in 2014.

While two weeks sounds like next to nothing, it certainly isn’t. So what does the delay mean for you the business owner? Because of delays in their day to day operations during the shutdown, they feel the two week extension is necessary to successfully get their programs up to date. The IRS will not begin accepting tax returns until January 28, 2014 at the very earliest.

Does this mean you have two extra weeks to file your taxes? Certainly not, the delay is solely for the benefit of the IRS, not the taxpayer. The IRS states that they are working to shorten this delay as quickly as possible but details the process as necessary. American taxpayers will be notified of all changes in this delay by December, at the traditional start of the tax season.

Delay or no delay, processing your tax forms in a timely fashion in necessary. If you’ve been avoiding that stack of forms on your desk in hopes that the tax season stoppage would allow you some extra time, don’t wait any longer. We are here to help with a team, ready to e-file your 1099, 1098 and W-2 forms efficiently and accurately. Contact us today to get started!

Sources:

http://www.irs.gov/uac/Newsroom/2014-Tax-Season-to-Start-Later-Following-Government-Closure;-IRS-Sees-Heavy-Demand-As-Operations-Resume

http://www.convey.com/1099-news-tax-blog/irs-regulation-updates/tax-season-will-be-delayed-in-2014/#axzz2k0nkzdiT

Online File Taxes

Tax forms and filing are a necessity, there’s no way around it. In the past, you may have seen an accountant or even tried to file the forms yourself. You are likely well aware of the hassle and hardship of trying to file the forms on your own. There’s an easier way!

We offer the ability to e-file not one, but hundreds of forms with ease. We also simplify the process by eliminating the need to purchase expensive software and upgrades. We allow you to import your information so you can avoid the tedious process of filling out extensive forms by hand. Another simple convenience offered by Online File Taxes is that the forms you file will automatically be e-filed with the IRS and your 1099 forms will be mailed to the recipients.

At Online File Taxes, we provide our customers with online access to your account as well, so filing and updating your information is a snap. Through our account management system, you not only have the ability to keep your personal information current, but you can also manage your recipients and view files you’ve already submitted.

We can provide filing services for dozens of different IRS forms, for your added convenience. Online File Taxes can file any manner of 1099 forms, 1098’s, and W-2 forms. We have the ability to ensure all paperwork is properly filed and sent off immediately to the IRS. All of our programs are made for simple, secure, and efficient use.

Our pricing structure makes for affordable filing, but in order to maximize discounts, be sure to file all of your forms at the same time. We can process over a thousand forms at any one time to allow for larger businesses to have maximum convenience and ease.

During tax time, please think of us for all of your filing needs. We can simplify the process and make your business life easier!