Bookkeeping & Write-up

If you are a Sole Proprietor, then the individual owning the business must sign. If you are a Corporation, then the president, vice president or other principal officer must sign. If you are a Partnership or unincorporated organization, then a responsible and dully authorized member or officer having knowledge of its affairs must sign. If you are a Trust, then the fiduciary must sign. Note that Form 941 may also be signed by a duly authorized agent of the taxpayer if a valid power of attorney has been filed.

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.

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.

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.

Restaurants employing at least 10 people must make a special report to the IRS of income and allocated tips. In 2010 the IRS assumed tip income of 8%. The allocated amount is shown on an individuals’ W-2 as tip income.

If your son is under 18 years old, then he is considered a worker not covered by Social Security. Other workers not covered by Social Security include most federal employees hired before 1984, Railroad employees with more than 10 years of service, and employees of some state and local governments that chose not to participate in Social Security. Speak to your local CPA if there is a question of whether a worker is covered by Social Security.

For 2012, the maximum taxable earnings amount for Social Security (OASDI) taxes is $110,100. There is no limitation on taxable earnings for Medicare's Hospital Insurance (HI) taxes.
The Social Security tax rate for employees is 4.2 percent through the end of the year.
The Social Security tax rate for employers is 6.2 percent.
The Medicare tax rate is 1.45 percent for employees and employers.
For Self-Employed individuals, the Social Security tax rate for self-employed is 10.4 percent through the end of the year. The Medicare tax rate is 2.9 percent for self-employed.

COLA's were first paid in 1975 as a result of a 1972 law. Prior to that, benefits were increased irregularly by special acts of Congress. Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 60 million Americans will increase 3.6 percent in 2012. The 3.6 percent cost-of-living adjustment (COLA) will begin with benefits that nearly 55 million Social Security beneficiaries receive in January 2012. Increased payments to more than 8 million SSI beneficiaries will begin on December 30, 2011.

The importance of keeping adequate, legible, complete records cannot be stressed enough. Without records, you cannot see how well your business is going and where it is going. All business transactions should be documented with checks or credit cards. Undocumented cash transactions should be avoided if possible. At a minimum, records are needed to substantiate your tax returns under federal and state laws, including income tax, social security and sales tax laws. It also is necessary to document and substantiate your transactions when you need to request credit from venders or loans from lending institutions. This documentation is also necessary should you wish to sell the business.