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The Importance of Accounting in Compliance with US Tax Laws and State Laws

Posted at 01/18/2018 » By : » Categories : Blog | Outsourced Bookkeeping Florida, Miami and East Coast » 0 Comment

United States of America is one of the biggest economies and is a host to myriad of companies operating and generating jobs and revenue for the economy. As the revenues stream in, every company be it small, emerging or giant takes stock of the situation regarding the tax laws. Regardless of what state you do business in, there are a few federal updates that will no doubt affect your US-based business. Doing taxes as a small business owner is often inundated with dozens of numbered forms, complicated terminology, and important dates to remember as the tax deadlines looms over. Small businesses tend to bear the brunt of the costs of accounting regulations. Outsourced Bookkeeping enables the firms to handle the accounting in compliance with US Tax Laws and State Laws.

The Importance of Accounting in Compliance with US Tax Laws and State Laws

Some of the most important accounting regulations you need to consider as the Tax day looms closer.

  1. Payroll Taxes

As a business owner, you are also required to pay half of your employees’ FICA taxes. The payroll taxes are imposed only on wages and not on income from investments, taxes on labor income are much heavier than taxes on income from capital.

  1. Employee Classification

In July 2015, the Department of Labor issued an Administrator’s Interpretation indicating that most workers are considered employees and should not be classified as independent contractors. Employees require a higher degree of compliance and regulation; they have taxes withheld from their paychecks, use W-2s for tax purposes, and most are entitled to employee benefits.

  1. State Regulations

There are plenty of state regulations emanating and needs to be addressed while overseeing the accounting. Even though the federal minimum wage hasn’t increased, many states and cities have passed laws increasing minimum wage, and that might affect your business. This will differ from state to state and one can carefully evaluate the state rules.

  1. Affordable Care Act

Affordable Care Act entails the businesses that has 50 or more full-time employees to provide the health benefits to its employees. Average of 30 hours or more work time in a week is the definition of the full time employees. Small business owners must track employee hours to report to the government.

Benefits of outsourcing bookkeeping is immense as few points below illustrate the accounting and tax outsourcing advantages.

  • Reconciliation of your checking accounts, credit cards and PayPal.
  • Clean up your accounts.
  • Provide the income statement.
  • Provide the balance sheet.
  • Provide Consultations.
  • Streamlining the accounting process is Outsourced Bookkeeping way of delivering work for our clients in USA.

There are hundreds of accounting regulations to consider and outsourced accounting services is one way to transform the accounting process. Outsourced Bookkeeping delivers the best accounting and tax outsourcing for the business owners with ease. We handle your worries while enabling you to focus on notching up revenues and growth.

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