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Merry Christmas!!!!

We love our clients!!! Celebrating with Tax Pro Marketer at their annual Christmas Party!

We love our clients!!! Celebrating with Tax Pro Markete...

Happy Thanksgiving from all of us at Nicholson Business Services!!!

Happy Thanksgiving from all of us at Nicholson Business...

Hoping you and your family are enjoying this Labor Day

Come join Minding the Gap for our Kickoff Luncheon on Saturday, August 5th!!! Even if you aren't sure that your schedule will allow for you to volunteer with us this year, we still want to see you! Come hear all the wonderful things that are happening in our city and enjoy a Chipotle burrito on us!

Come join Minding the Gap for our Kickoff Luncheon on S...

Thank you Flutter Habbit for the beautiful flowers! It is an honor to serve your company. We love celebrating the success of your amazing business!!!

Thank you Flutter Habbit for the beautiful flowers! It ...

Celebrating the birth of our nation! Wishing you the very best on this 4th of July!

Celebrating the birth of our nation! Wishing you the ve...

Remembering and honoring those who have served, we celebrate this Memorial Day!

Remembering and honoring those who have served, we cele...

Happy Easter!!!

This is a really helpful article that gives the basics about small business accounting and bookkeeping. If your business is needing bookkeeping, accounting, or payroll help, send us a message today!

This is a really helpful article that gives the basics ...

We love and support Minding the Gap!!!

Merry Christmas from all of us at Nicholson Business Services!

Merry Christmas from all of us at Nicholson Business Se...

Four Last Minute Year End Tax Tips As 2022 turns into 2023, we wanted to remind you about some tax deductions that could ease your tax burden. Here are four deductions that you want to be aware of. Charitable Donation Deduction: You may be able to subtract the value of your charitable gifts from your taxable income. Be sure to keep your receipts. IRA Contribution Deduction: You may be able to deduct contributions to a traditional IRA. How much you are allowed to deduct will depend on whether or not you or your spouse is already covered by a work retirement plan. 401(k) Contribution Deduction: A 401(k) is a pre-tax retirement account that is sponsored by employers, however self-employed individuals are allowed to open up their own 401(k). The funds invested in a 401(k) are pre-tax dollars that are exempt from federal taxes. Health Savings Account Contribution Deduction: Contributions to a Health Savings Account are tax-deductible. Withdrawals are tax-free as well as long as you use them for qualified medical expenses. As always, consult your tax professional in order to get the maximum benefit for each of these deductions.

Four Last Minute Year End Tax Tips

Wes and Cendi Engram threw a fantastic Christmas Party! Merry Christmas to everyone at Integrity 9. Congratulations on a successful 2022!

Wes and Cendi Engram threw a fantastic Christmas Party!...

On this #GivingTuesday, we want to invite you to partner with Minding the Gap as we continue to serve children in our city by teaching reading skills, building self-esteem, and promoting healthy connections to caring adults. ❤️❤️❤️

On this #GivingTuesday, we want to invite you to partne...

From our family to yours! Happy Thanksgiving! We have a lot to be thankful for! ❤️❤️❤️

From our family to yours! Happy Thanksgiving! We have a...

Great job Minding the Gap!!!

Tis the Season for W9’s!!! If you are a small business owner, there are two critical tax forms that you need to be familiar with when working with companies and independent contractors. IRS Form W9 and 1099: The IRS Form W9 captures information that is used to determine if a 1099 will need to be issued to a company or individual (1099s are not required for corporations). The best practice is for a business to obtain a W9 from all companies or individuals before making payments to them. Here are the most common reasons (but not all) for requiring a 1099 to be filed: Paying more than $600 during the year for: Services performed by someone who is not your employee Payments to attorneys (including law firms or other providers of legal services) Rents Collecting the W9s before work is performed will prevent the headache of scrambling to track these forms down at the end of the year. There are hefty penalties for not following the 1099 filing requirements. This process can be quite confusing. If your head is spinning and your small business could use some help, reach out to us today!

Tis the Season for W9’s!!!

Important Tax Due Dates: Do you sometimes wonder when your tax payments and filings are due? Compliance with the IRS should be something on top of every small business owner’s checklist. Missing tax deadlines can be very costly. Not only will you be assessed penalties, but you will also be charged interest for the outstanding balance of taxes and penalties owed. We want to help you stay current by making you aware of some of the most important deadlines. Tax Extension Deadline If you filed a tax extension for 2021 you must file your Tax Return (Form 1040) and pay any taxes due before October 17th. Estimated Tax Payment Schedule The IRS follows a pay-as-you-go system for taxes. If you pay estimated taxes here are the due dates for each quarter. Payment Period​​​​ Due Date January 1 - March 1​​​​ April 15 April 1 – May 31​​​​ June 15 June 1 – August 1​​​​ September 15 September 1 – December 31​​​ January 15 of the following year Employee and Contractor Forms W-2:​ All businesses are required to provide their employees with a Federal Wage and Tax Statement (Form W-2). The annual deadline to file the W-2 form is January 31. Failure to file W-2’s on time will result in penalties of $50 per W-2 provided that you file the correct form within 30 days of the due date. If you file between 30 days of the due date and August 1, the fine increases to $110 per form. Filing after August 1 will result in a $290 fee per W-2. Intentional disregard to file results in a $580 fee per form. In other words, get them filed on time! 1099:​ If you hired independent contractors during the previous tax year, you will need to issue that contractor a Form 1099-NEC by January 31. The same penalties and deadlines that apply for filing W-2’s also apply to filing 1099’s. We hope that you find this information helpful. If your business is needing help with your accounting processes, do not hesitate to reach out to Nicholson Business Services LLC. We have a solution!

Important Tax Due Dates:

Happy Labor Day! Take this time to relax and recharge.

School is Back in Session…Should I Consider a 529? What is a 529? A 529 plan is a tax-advantaged education savings account. Most are sponsored by educational institutions, state agencies, or the individual state. They offer great tax benefits and are a very popular investment strategy to help save for higher education. What are the benefits of a 529? Most states offer some sort of tax benefit for making 529 contributions. Typically, those benefits include receiving a tax deduction on state income taxes or a matching grant opportunity. The earnings on the investment are tax free and will grow for as long as your money is invested. The maximum allowable annual contribution varies from state to state, so be sure to understand your state’s 529 rules. Can 529’s only be used for college tuition? 529’s do not have to be used exclusively for college tuition. Funds can be used to pay for books, room and board, and other qualified expenses at any accredited vocational school, college, university, and grad school in the United States and abroad. Furthermore, some states allow for the assets to be used toward K-12 tuition at private or religious schools. What if my child does not go to college can I change the beneficiary? If your child chooses not to go to college, you are allowed to change the 529’s beneficiary. As long as the new beneficiary is a family member, the funds can be used without penalties. We hope that you have found this information helpful. 529 plans can be a great tool to help you save for your child’s college education. Be sure that you are familiar with the guidelines for the particular state that you reside in. As always, if your small business is in need of accounting solutions, we would be glad to help. Contact us today! http://nicholsonbusinessservicesllc.com/

School is Back in Session…Should I Consider a 529?

I love this business!!!

Some Common Questions About Hiring Your Child to Work for You If you are struggling to find good employees in this tight labor market, have you considered the possibility of hiring your children? There are many benefits to having your child work for you. Here are some things to think about as you consider the possibility of hiring your children. Is there a minimum age to hire your children? No. There is not a minimum age for children of business owners to be able to earn a paycheck. However, you do need to pay them a fair wage and they must perform work that is appropriate for their age. For instance, you would not have your 12 year old negotiating contracts and running the sales team. Do I need to keep records? Just like you would need to do with any other employee, you will need to keep track of your child’s hours along with the type of job that they perform. You will also need to fill out the IRS Form W-4 and a Form I-9. Do I need to withhold taxes when paying my child? Children under the age of 18 are subject to income tax withholding rules regardless of their age. However, they are not subject to social security and Medicare taxes. Shall I use a W2 or 1099 tax form? Every person that is classified as an employee should be issued a W2. If your child is over the age of 18, they may qualify to be paid as a subcontractor and would need to be issued a 1099. If they are paid using the 1099, you would not withhold taxes from their paycheck and would not be paying the employer’s share of Social-Security and Medicare. Furthermore, this would also mean that you do not directly manage them or their work. It is very important to classify every person that you employ correctly, otherwise there could be significant legal ramifications. Hopefully this answers some of your questions and gives you some valuable insight into this subject. For more specific information you need to contact a tax professional. If you are looking for accounting solutions for your small business, contact us today! www.nicholsonbusinessservicesllc.com

Some Common Questions About Hiring Your Child to Work f...

Summer is upon us, and with that comes vacation season! This article gives some great tips on how to take a real vacation as a small business owner. Also, if having some assistance in accounting services will help, let us know!

Summer is upon us, and with that comes vacation season!...

Minding the Gap is one of the charities that Nicholson Business Services LLC sponsor.  They are doing great things in the Hickman Mills School District! Can’t wait to see what’s in store for next year!

Blog Results

Our BlogDo you have questions about small business accounting?

Merry Christmas!!!!

December 25, 2023

We love our clients!!! Celebrating with Tax Pro Markete...

December 10, 2023

Happy Thanksgiving from all of us at Nicholson Business...

November 23, 2023

Hoping you and your family are enjoying this Labor Day

September 04, 2023

Come join Minding the Gap for our Kickoff Luncheon on S...

July 26, 2023

Thank you Flutter Habbit for the beautiful flowers! It ...

July 11, 2023

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