Purplegreenaccountingmachine's Blog

Minnesota and Wisconsin Reciprocity Agreement

purplegreenaccountingmachine — Tue, 02 Feb 2010 19:56:42 +0000

More Green/Gold vs. Purple/Gold drama!

Wisconsin and Minnesota ended their reciprocity agreement on January 31, 2009. The dissolution of the agreement requires employers in each state t o withhold not only the state’s income tax where the work is provided, but may include the employee’s resident state income tax withholding in another state. Residents of either state who work in the other will be required to file state income tax returns in – and pay taxes to – both states.

The long-standing reciprocity was cancelled because both states face huge budget deficits and believe the other is getting an unfair share of taxes and negotiations failed. This could be an indicator that several other states who maintain reciprocity agreements could cancel for the same reasons.

Even & Better, LLC watches for new nonresident State Income Tax withholding and filing obligations by monitoring state Web sites in states where our clients’ employees work. Employers need to remember no matter how inconsequential the amount of time they spend in that state—and in states where employees live proper withholding should be followed. Many states are auditing firms that fail to withhold nonresident State Income Tax, and liabilities and penalties can be substantial.

Warning for Businesses Accepting Credit Cards!

purplegreenaccountingmachine — Sun, 24 Jan 2010 21:07:28 +0000

Just a little FYI, because this administration is really looking at all the rules and regulations on credit cards, and now it looks like businesses who process credit cards will be facing some extra work. Here’s a warning from AIPB (American Institute of Professional Bookkeepers):

The IRS plans to require credit card and other firms that process transactions to report gross network transactions to participating merchants—and the IRS—annually starting next year. The IRS will use the reports as it does W-2s and 1099s. Thus, a company whose gross receipts differ from those in these reports will be audited or asked to explain the differences. That means each business will have to monitor and reconcile the reports and, if there are errors, request corrected statements. [IR-2009-106; REG-139255-08, Income Tax Regs]

Sounds like job security to me! Let me know if you would like to talk about how you’re currently processing your credit card payments, and if you fall within the guidelines for reconciliations. I’m sure Intuit and other software products will be working on making processing this information, as well as reporting this information easier in the future.

FIRST Blog! Woo-Hoo!

purplegreenaccountingmachine — Sun, 24 Jan 2010 20:50:42 +0000

I’ve always wanted a Blog! This is my first attempt at informing the world of all that is important to me. It’s not my style to typically spill my beans, and hope someone finds interest in it. However, as I grow as a professional and define my path, I’m understanding this platform as another way to stay in touch with all who I have counted on in my personal and professional life.

2010 is my year to start new things, achieve great goals, document my achievements so I’m able to share them with others. I hope that something in my path might help someone else’s journey a little easier. A common theme that keeps re-0ccurring in my life is that the connection with my clients, vendors, referral resources, family and friends is a blessing in itself. It’s my responsibility to nourish those relations with love and respect. My role as a bookkeeper and tax preparer is hopefully a blessing to someone else. I love this path I’m on, and I’m totally committed to sharing it with whomever may be interested.