Bookkeeping & Write-up

Generally, expenditures for things which have a useful life over a period of years are capitalized and then systematically expensed over the useful life of the asset. Expenditures with a life less than 12 months can be fully expenses in the current year.

Yes. Now, more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. Use E-File at www.irs.gov/efile and (EFTPS) the Electronic Federal Tax Payment System at www.eftps.gov or call EFTPS Customer Service at 1-800-555-4477.

As of January 2001, Form 940 can be filed over the internet. The methodology will be similar to the way Form 941 is currently being handled. IRS-approved providers are currently being finalized. Speak to your local CPA or check the IRS website at http://www.irs.gov/elec_svc/efile-bus.html.

Generally, Yes. The 941 Telefile number is 1-800-583-5345 1-800-583-5345 .The Telefile system will accept calls the first day after the period at 9 a.m.,24 hours a day. For the best results, use a touchtone phone but do not use a cordless or cellular phone, or one with a keypad in the handset. For more help, speak to your local CPA or call Telefile assistance at 1-800-829-8815 1-800-829-8815.

You use the current year Form 940 to amend a return that you previously filed in the current year. If you are amending a return for a previous year, use the previous year's Form 940. Follow these steps: Use a paper return to amend a Form 940 filed under an electronic filing program. Check the amended return box in the top right corner of Form 940, page 1, box a, Fill in all the amounts that should have been on the original form. Sign the form .Attach an explanation of why you are amending your return. File the amended return using the Without a payment address (even if a payment is included) under Where Do You File? On page 2.

Depending on how much you paid in wages, how many employees you employed, and the "Type" of employee you employed, will determine if you have to pay Federal Unemployment taxes(FUTA)or not. The three different "types" of employees are Household employees, Farmworkers and everybody else. For non-Household of Farmworkers, the general test is that you are subject to FUTA tax on wages if you paid employee wages of $1,500 or you had one or more employees for at least some part of a day in any 20 or more different weeks. A Household worker is an employee who performs household work in a private home, local college club or local sorority or fraternity chapter. The Farmworkers test is that you are subject to FUTA tax on wages if you pay employees cash wages of $20,000 or more in any calendar quarter or you employed 10 or more farmworkers during at least some part of a day (whether or not at the same time) during any 20 or more different weeks.

If your FUTA tax is more than $500 for the calendar year you must deposit at least one quarterly payment. Taxpayers are liable for penalties if a deposit is not made in the required manner. To enroll in the EFTPS speak to your local CPA or call 1-800-945-8400 1-800-945-8400 or 1-800-829-1040 1-800-829-1040.

Generally, your church or any other non-profit religious or educational, charitable organization is not subject to the Federal Unemployment tax (FUTA) and is not required to file Form 941. Speak to your local CPA if you are not subject to the FUTA tax.

Wages paid to state or local government employees are not subject to FUTA, the Federal Unemployment tax.