BMT Small Business Services

FSA and HSA Debit Cards

2011-05-04T16:10:00.000-07:00

The Affordable Health Care Act essentially bars purchase or reimbursement of over-the-counter (OTC) drugs from FSAs and HSAs made after Dec. 31, 2010, unless there was a prescription for the medicine and a receipt for the purchase. Now the IRS has issued updated guidance modifying the old rules and posted Q&A on its web site. (www.irs.gov/newsroom, and search for care tax provisions)

Accountable Plans

2011-05-04T16:04:00.000-07:00

Accountable plans that meet IRS requirements do not require employee expense reimbursements and allowances to be included in income on an employee's W-2 (nonaccountable plan reimbursements do; employees must file a 2106 with the IRS to claim the deductions) An accountable plan must require employees to submit within a reasonable period of time.

1. an account of the expense in writing, including its business purpose; and

2. excess reimbursements or unused allowances.

An accountable plan requires a written policy of company procedures for expense advances and reimbursements and required employee documentation. (Without this, a plan may be deemed nonaccountable.)

Some employers provide credit cards for specific expenses, such as travel, monitoring usage with reports from the card issuer. For details, download IRS Pub. 463, at irs.gov

Section 179 Expensing for Small Business has changed

2011-05-04T15:53:00.000-07:00

For taxable years beginning in 2012, the maximum deduction of $125,000 of the cost of qualifying property placed in service for the taxable year is reduced as the cost rises above $500,000.00. The $125,000 and $500,000 amounts are indexed for inflation. Also extended for 1 year (through 2012): Treating off the shelf computer software as qualifying property and amending or irrevocably revoking the Section 179 election for a taxable year without the Commissioner's consent.

For taxable years beginning in 2010 and 2011, the maximum amount that a taxpayer may expense is $500,000 of the cost of qualifying property placed in service for the taxable year. The $500,000 amount amount is reduced (but not below zero) by the amount by which the cost of qualifying property placed in service during the taxable year exceeds $2,000,000. Off the shelf computer software placed in service in taxable years beginning before 2012 is qualifying property.

For taxable years beginning in 2013, the maximum Section 179 dedcution of $25,000 of the cost of qualifying property placed in service for the taxable year is gradually reduced as the cost rises above $200,000.

Year End Efile Unavailability

2010-12-04T05:04:00.000-08:00

Important Year-End Information

E-File Unavailability

Social Security Administration and Intuit E-File Unavailability Dates

The Social Security Administration (SSA) and Intuit will not accept any W-2 submissions from December 3, 2010, through December 16, 2010. During this time, the SSA and Intuit will be preparing for the 2010 W-2/W-3 submissions.

The last day to submit 2009 W-2/W-3s through Quickbooks is December 2, 2010.

Internal Revenue Service E-File Unavailability DatesThe IRS will not accept Forms 940, 941, and 944 via E-File from December 14, 2010, through January 3, 2011, due to year-end preparation for 2010 filings. Enrollments will also not be available via E-File during this time.

Please note that if you attempt to E-File through QuickBooks during the periods noted above, the filing will not go through and you will be advised of the next filing availability window.

New Health Care Tax Credit Form

2010-11-08T10:23:00.001-08:00

The IRS has created Form 8941, Credit for Small Employer Health Insurance Premiums and instructiosn. To see a draft of the form, visit www.irs.gov and type “Form 8941” in the search box. Employers will file the 8941 with their tax returns and claim the credit as part of their general business tax credit.

For 2010, small firms contributing at least half the cost of employees’ single coverage (ie, need not be family coverage) can claim the credit.

Maximum credit, tax years 2010-2013: 35% of premiums paid by eligible small businesses and 25% of premiums paid by eligible tax-exempts.

Maximum credit, tax year 2014: 50% of premiums paid by eligible small firms, 35% by eligible tax-exempts.

The maximum goes to employers with 10 or fewer full-time equivalent (FTE) employees earning annual average wages of $25,000 or less. The credit phases out as the number of FTEs or average wages rise. There is no credit for employers with 25 or more FTEs or average annual wages of $50,000 or more. However, because eligibility is based partly on the number of FTEs (not just the number of employees), firms that have part-timers may qualify even if they employ more than 25 workers.

What name should you use to pay an independent contractor?

2010-11-08T10:14:00.000-08:00

For an individual, use the person's legal name. For a DBA, partnership or other business entity, use the entity's name.

Credit Card Statements are not Enough

2010-11-08T10:12:00.000-08:00

A credit card statements is not proof of the business purpose of an expense. This requires receipts or other evidence that serve to demonstrate the exact nature of the purchase and why it was an ordinary and necessary for the business. Just showing that a payee is an office supply store or other vendor of items or services, most of which are ordinary and necessary for the business is not enough. Nor is the taxpayer's general recollection of the business purpose of an expense likely to be sufficient proof of business purpose.

Help with New Health Care tax Credits

2010-11-08T10:05:00.000-08:00

A new federal web site provides information on tax credits for the employer's share of employee medical plans.

Beginning October 2010, the site will include standardized information on the benefits and costs of each plan so small employers can make comparisons while shopping for coverage for their workers.

Visit http://www.healthcare.gov/

Another easy way for a small business to estimate the health care tax credit available to them is to use the calculator at www.nfib.com/creditcalculator

Request of a W2

2010-11-08T10:01:00.000-08:00

Normally, an employer must provide a W-2 by Jan. 31 of the subsequent calendar year, but iIf a former employee requests a W-2, you must provide it within 30 days of the later of the request v. final wage payment.

New W4 Wording

2010-11-08T09:57:00.000-08:00

You cannot withhold a flat amount from a paycheck. The IRS states "withholding must be based on allowances you claimed and may not be a flat amount or percentage of wages".

The reason: Using a flat percentage conflicts with the graduated tax rate system.

If the IRS discovers a group of W-2s with too little FITW and cannot figures out how that amount was withheld, it wil suspect that it is a flat amount. Then it will be the employe - not the employee - who is held responsible.

The new W-4 is available at www.irs.gov/pub/irs-pdf/fw4.pdf and the worksheet at http://www.irs.gov/, type in "withholding calculator".

STI Legal Text Editing Keystrokes

2010-11-08T08:09:00.000-08:00

Left-Arrow Moves the cursor left one character.

Right-Arrow Moves the cursor right one character.

Ctrl + Left-Arrow Moves the cursor left one word.

Ctrl + Right-Arrow Moves the cursor right one word.

Home Moves the cursor to the beginning of a field or line.

End Moves the cursor to the end of a field or line.

Ctrl + Home Moves the cursor to the beginning of a field.

Ctrl + End Moves the cursor to the end of a field.

Tab Moves the cursor to the next field.

Enter Moves the cursor to the next field (data entry windows only).

Shift + Tab Moves the cursor to the previous field.

Shift + Enter Moves the cursor to the previous field (data entry windows only).

Del Deletes the character to the right of the cursor or deletes selected text. Backspace Deletes the character to the left of the cursor or deletes selected text.

Ctrl + Del Deletes all characters to the right of the cursor on the current line. In rich text fields, Ctrl + Del deletes the text following the cursor up to the next word.

D or T Pressing "D" (Date) or "T" (Today) in a date field will enter the system date.

C Pressing "C" in a date field will replace the current date with "mm/dd/yyyy" (provided the date field allows a value of "mm/dd/yyyy").

> or < Pressing the ">" or "<" key in a date field will increase or decrease the day of the month. Pressing the ">" or "<" key in a number field will increase or decrease the number by one. (This feature is available in numeric fields that do not have a drop-down button.)

Q Pressing "Q" (QuickDate) in a date field will display the QuickDate Calculator window, allowing you to calculate a date.

M Pressing "M" (math) or any math operator ("+", "-", "*", "/", and "=") in a number field will display the popup calculator, allowing you to calculate a numeric value.

Configure Windows Server 2008 to Notify you when Certain Events Occur

2010-11-08T08:08:00.001-08:00

You can configure alerts to notify you when certain events occur or when certain performance thresholds are reached. You can send these alerts as network messages and as events that are logged in the application event log. You can also configure alerts to start applications and performance logs.

To configure an alert, follow these steps:

1. In Performance Monitor, under the Data Collector Sets node, right-click the User-Defined node in the left pane, point to New, and then choose Data Collector Set.

2. In the Create New Data Collector Set Wizard, type a name for the data collector, such as Processor Alert or Disk IO Alert.

3. Select the Create Manually option, and then click Next.

4. On the What Type Of Data Do You Want To Include page, select the Performance Counter Alert option, and then click Next.

5. On the Which Performance Counters Would You Like To Monitor page, click Add to display the Add Counters dialog box. This dialog box is identical to the Add Counters dialog box discussed previously. Use the dialog box to add counters that trigger the alert. Click OK when you have finished.

6. In the Performance Counters panel, select the first counter, and then use the Alert When Value Is text box to set the occasion when an alert for this counter is triggered. Alerts can be triggered when the counter is above or below a specific value. Select Above or Below, and then set the trigger value. The unit of measurement is whatever makes sense for the currently selected counter or counters. For example, to generate an alert if processor time is over 95 percent, select Over, and then type 95. Repeat this process to configure other counters you’ve selected.

7. On the Create Data Collector Set page, the Run As box lists <Default> to indicate that the log will run under the privileges and permissions of the default system account. To run the log with the privileges and permissions of another user, click Change. Type the user name and password for the account, and then click OK. User names can be entered in domain\username format, such as cpandl\williams for the Williams account in the Cpandl domain.

8. Select the Open Properties For This Data Collector Set option, and then click Finish. This saves the data collector set, closes the wizard, and then opens the related Properties dialog box.

9. By default, logging is configured to start manually. To configure a logging schedule, click the Schedule tab, and then click Add. You can now set the Active Range, Start Time, and run days for data collection.

10. By default, logging stops only if you set an expiration date as part of the logging schedule. Using the options on the Stop Condition tab, you can configure the log file to stop automatically after a specified period of time, such as seven days, or when the log file is full (if you’ve set a maximum size limit).

11. Click OK when you’ve finished setting the logging schedule and stop conditions.

From the Microsoft Press book Windows Server 2008 Administrator’s Pocket Consultant, Second Edition by William R. Stanek.

Advertising Your Small Business - Some Low Cost Ideas

2010-11-08T08:07:00.000-08:00

Get your logo out there

Sure, you've got your name on your sign, your business card, and your stationery. But even if you've included your logo in all of the obvious places, there could be more opportunities for exposure. Think about ordering mailing labels, plastic bags, bookmarks, and other inexpensive items you can include with customer orders. For larger publicity, see if you can barter with other businesses to display your logo somewhere in their store or office in exchange for similar free advertising for them. And, of course, never forget to include your business card in all correspondence, both professional and personal.

Email newsletters

Marketing isn't just about attracting new customers—it's also about keeping the one's you've already got. Using your small business software to develop a list of valued customers who opt to be included on an email newsletter distribution list is a great way to build community and keep customers returning to your website. Make sure your mailings contain a mix of engaging, original content and special "insider" offers so people want to read what you send. A great example of a winning promotion is offering a 25 percent discount if a customer refers a friend. You can also let this select group in on new products when they are first released, along with a bonus gift for buying early.

Coupons and incentives

It usually doesn't cost a lot to print some coupons and enclose them in the Sunday circular or send them out through direct mail. And it costs even less to create them online and email them to customers. Particularly in recent months, Americans have been looking for any chance to score a deal, so coupons are a good bet for catching people's eyes. Many businesses have found success through buy-one-get-one-free offers, which entice people to spend money in order to get a reward. Make sure you include your firm's website address prominently on each coupon and keep them on hand to give out at trade shows, networking functions, and whenever the mood strikes.

Get active on the blogs

Blogs are hotbeds of free marketing opportunities. You can maintain your own in which you give expert advice, comment on the latest issues in your industry, or link to interesting news stories that may be relevant to customers. Or you can seek out other blogs in your sector and leave relevant comments, followed by your business' name and web address.

Tweet your message

It's hard to read about small business marketing these days without hearing about the power of Twitter. This social networking website really can be an effective—and inexpensive—tool for small companies' marketing efforts. You can post Tweets (individual messages on Twitter) about deals, coupons, and opportunities. You can also post links to articles and news on your website. And, perhaps most importantly, you can interact with customers directly. Don't forget to include your Twitter address on marketing materials—and devote sufficient time to keeping your feed updated.

Cross-promotional marketing

Team up with a fellow small company and agree on a cross-promotional marketing campaign. This strategy works best when you select a complementary business. For example, a personal trainer and a massage therapist could join forces to reach out to each other's customers through coupons. The trainer could give anyone who signs up for ten sessions a coupon for a free massage. In return, the masseuse could offer customers a 15 percent discount on their first session with the trainer. You can also seek out businesses who agree to provide testimonials and recommendations to each other to their customers. For instance, when a bride seeks out a particular wedding photographer, she might get a recommendation for a photographer and DJ as well.

Avoiding an audit

2010-11-08T08:05:00.000-08:00

To minimize the chance of your company or client being audited, follow these guidelines:
1. Keep good records—including details on income, expenses, debts, and deductions—and keep them at least 7 years.
2. Make sure forms are completely filled out—and signed—before submitting them. Omissions may prod the IRS to double-check your returns.
3. Reminder: The IRS gets a copy of every 1099, W-2 and K-1 that you receive. Make sure you report all income and that it agrees with amounts on
documents the IRS has. IRS computers pick income that does not agree exactly with documents reporting your income submitted by you or any
other entity or person. Cash businesses must file an 8300 for cash transactions over $10,000.
4. Don’t change or mesh accounting methods. You cannot switch from cash to accrual or accrual to cash without IRS permission. Using a combination
of cash and accrual guarantees an audit. If you sell inventory, you are almost guaranteed to be required to use the accrual method.
5. Classify workers as ICs very carefully. If you control when, where and how the person works, and do not have a contract, the IRS may say that is
an employee and assess you back payroll taxes. Reminder: 1099s are required if you paid an individual more than $600 during the tax year.
6. Do not commingle personal expenses and business expenses. If you take a home office deduction, have a designated work area and photograph it. If you use your personal automobile for business, keep a contemporaneous log on when, where and why you drive and the business purpose. If you piggyback a vacation on a business trip, you can deduct only the expenses related to the business portion.
7. If your taxes are complex, hire an accountant, or think about using tax software.

Source: Tiare Rath, “Top Ways to Avoid Small Business Audits.” About.com Small Business Information, available at http://sbinformation.about.com as of 3/1/10.

Too Many Windows Open?

2010-11-08T08:03:00.001-08:00

Have too many windows open? . . Close them all at once by clicking the Window drop down menu, Close All and QuickBooks will instantly close all open windows (and ask you to save any transactions in process)

Customize Your Invoice Template

2010-11-08T08:02:00.001-08:00

To customize your invoice template, Goto . . .List menu > Template > Select the template > Right click select edit > click on Additional Customization to turn on/off heading, columns, footers etc, > click on the Layout designer to customize the appearance of the template.

Calculations on the Fly

2010-11-08T08:01:00.001-08:00

How often have you worked in QuickBooks and needed to do add up numbers? If you are in an amount field on a check or other transaction, just pressing the number keys followed by a mathematical symbol (+, -, /, *) you will pull up the calculator. Note: Just remember to press the Enter key to... enter the amount into the number field. If you press the tab key you will lose the amount.

Sorting Order

2010-11-08T08:00:00.001-08:00

In your Check Register . . change the sorting order. You can sort by Amount (either ascending or descending – all payments, which are really negative numbers, will be shown separately from all deposits, which are positive numbers), Number, Order Entered or Date and Order Entered Cleared Status (leaving all unreconciled transactions to the end of the register). This can really help you find something quick.

When Passing Time Through on Invoices, the Description is always Blank

2010-11-08T07:59:00.001-08:00

The default when passing time to invoices is to display the notes field. When selecting time entries to post to invoices, click on the radio button that indicates to transfer item descriptions to invoices:
1. From the Customer invoice, click Add/Time Costs button.
2. From the Choose Billable Time and Costs window, ensure the Time tab is active, and click the Options button.
3. From the Options for Transferring Billable Time window, click the Transfer item descriptions radio button and click OK twice

Showing Customers Past Due Amounts on an Invoice

2010-11-08T07:58:00.000-08:00

You can add the total customer balance to invoices. To do this, you would need to customize the invoice:
1. Open the Invoice
2. Click on the Customize button in the top right of the Invoice
3. Select the Additional Customization button at the bottom
4. Choose the Footer tab at the top of the Additional Customization screen
5. Place a check-mark in the Customer Total Balance line
6. Click OK
7. Click OK again

Adjusting Vendor Accounts Payable (To write off bills from prior years)

2010-11-08T07:56:00.000-08:00

1. Enter Bills
2. Click Credit
3. Select Vendor
4. Enter Credit Amount
5. Under expenses – the account should be – Other income
6. Then
7. Go to Pay Bills
8. Select bill to write off
9. Click Set Credits
10. Click Done

Create a Barter Account to Offset AR with AP Invoice

2010-11-08T07:54:00.000-08:00

1. Create a virtual bank account called Barter
2. Let’s say the Invoice is $500.00 and the bill is $500.00
3. Receive the payment for the $500.00 and put the “money” into the barter account
4. Pay the $500.00 bill from the barter bank account
5. The Barter bank account should now be zero again
6. Or
7. Let’s say the Invoice is $400.00 and the bill is $500.00
8. Receive the payment for the $400.00 and put the “money” into the barter account
9. Pay $400.00 of the $500.00 bill from the barter bank account
10. The barter account is now at zero and there is $400.00 left owing on the bill.
11. Pay the $100.00 from the regular bank account or leave until the next invoice

Setup an account for Online Banking

2010-11-08T07:52:00.000-08:00

Before you enable your QuickBooks account for online access, determine if your financial institution offers online services:
1. From the QuickBooks Banking menu, choose Online Banking, and select Available Financial Institutions.
(Prior to QuickBooks 2006: Fom the QuickBooks Banking menu, choose Set Up Online Financial Services, and then choose Online List of Available Financial Institutions)

2. An alphabetized list of participating financial institutions will appear on the left side of the Financial Institutions Directory window. Click a link for a financial institution to see contact information and list of supported services.

3. If your financial institution is not listed, you may want to apply for an account with one of the partner financial institutions listed.
Note: Each financial institution (not Intuit, Inc.) decides whether or not it will provide online financial services that are compatible with QuickBooks.
Next, you will need to apply for online account access through your participating financial institution:

1. In the Financial Institutions Directory window (see the steps above), click the link for your financial institution.
2. Click Apply Now on the right side of the window and follow the instructions.
After applying, you will receive a confirmation letter from your financial institution, usually within 10 business days. Once you have received this letter, you are ready to enable your QuickBooks account for online access:

1. From the QuickBooks Banking menu, select Online Banking, then choose Setup Account for Online Access.
(Prior to QuickBooks 2006: From the Banking menu, choose Set Up Online Financial Services, and then choose Setup Accoount for Online Access)

2. In the Online Banking Setup Interview window, click the Enable Accounts tab and follow the instructions.

Tracking Credit Cards by Download

2010-11-01T18:08:00.000-07:00

Downloading transactions:
a) You can set up your credit card account in QuickBooks for online banking, which will allow you to download transactions from the credit card company. To do this, go to the Banking menu in QuickBooks, then the Online Banking option, and select "Set up account for online services." (The exact wording of this menu choice may be a little different depending which verison of QuickBooks you're using.)
b) Continue through the online banking setup wizard -- selecting the credit card account in QuickBooks and the credit card company (e.g. American Express). Depending on the credit card company, sometimes you may need to contact them first to activate online banking in QuickBooks or to obtain a new password for downloading transactions -- the setup wizard should tell you if you need to.
c) After you've set up the account, you can download your credit card transactions into QuickBooks by going to the Online Banking Center (icon on the icon bar or via the Online Banking menu under the Banking menu). If you've already manually entered any charges, they will automatically match the downloaded transactions. You'll also be given the opportunity to add any transactions downloaded that were not yet entered in QuickBooks and assign the appropriate accounts. (You can still always manually enter credit card charges as well.)
d) Downloaded transactions are flagged for reconciliation with a lightning bolt in your register. When you go to reconcile your credit card account (if enabled for online banking) using the Reconcile feature in QuickBooks, click on the "Matched" button to show the downloaded transactions that were already flagged for reconciliation.