Ask a CPA

Worker's Compensation is a program compensating injured workers: a form of insurance required from employers that provides money as compensation for workers who are injured at work or contract an occupational disease. Worker's Compensation is a pretty straightforward type of coverage. It provides payment for all work-related injury medical bills, rehabilitation, and provides a certain amount of income after a waiting period (usually 7 days). It provides a death benefit, as well. Workers Compensation premiums are based on the payroll earned by employees during the policy period which usually is for one year. Rates are determined on the type of work performed. Your insurance agent can explain this coverage as it relates to the laws in your particular state.

Some aspects to consider are licenses required, zoning laws and other regulations that vary from state to state and business to business. Depending on the type of business you are running, you may also need establishment licenses, liquor licenses, delivery and or transport licenses. Your local SBA office or chamber of commerce will provide you with general information. You must decide about your form of organization. You must choose to be a sole proprietorship, corporation, s-corporation or partnership. Speak to your local CPA for advice specific to your business and location.

Man should never live by tax deductions alone! While leasing a car for business often results in a larger deduction, leasing does not necessarily make business sense. If you are going to travel an enormous amount of miles during the year(in excess of 15,000 miles/year), or if excessive wear and tear on the vehicle is probable, then do not lease the auto or truck. If you do decide to lease a vehicle given those circumstances, you may be shocked when you go to turn in the vehicle at the end of the lease.

One address is www.kentis.com/acctxpub.html

No. Technically a husband and wife can't jointly own a business as a sole proprietor. They can't split a sole proprietorship and file two Schedule C's and two Schedule SE's. To avoid being classified as a partnership, a husband and wife team operating a business together can treat one spouse as an employee and the other spouse as the owner.

Domestic General stock funds: LG = large growth, MG = mid-cap growth, SG = small growth, MB = mid-cap blend, SB = small blend, LV = large value, MV= mid-cap value, SV= small value, DH = domestic hybrid. Domestic Specialized stock funds: SC = communications, SF = financial, SH = health, SN = natural resource, SP = precious metal, SR = real estate, ST = technology, SU = utilities. International stock funds: FS = foreign stock, WS = world stock, ES = europe stock, DP = diversified pacific asia, PJ = pacific asia ex japan, JS = japan, EM = diversified emerging market, LS = latin american stock, IH = international hybrid.

General Bond fund: CL = long term bond, CI = intermediate term bond, CS = short term bond.
Government Bond funds: GL = long term bond, GI = itermediate term bond, GS = short term bond.
Specialized Bond fund: CV = convertibles, UB = ultra short bond, HY = high yield bond, MU = multisector bond, IB = international bond, EB = emerging market bond. Municipal bond funds: ML = muni national long, MI = muni national intermediate, SL = muni single st. long, SI = muni single st. intermediate, MS = muni single st. short, MS = muni single st. short, MY = muni NY long, MC = muni California long, MN = muni NY intermediate, MF = muni California intermediate.

The first year limit for cars placed in business service in the current year is $11,160, if you elect the special depreciation allowance for qualified passenger auto's.

Your filing status and gross income determine if you have to file a 2012 tax return. In the year 2011 if your filing status is single and under age 65 then the gross income must be more than $9,750 ($9,500 in 2011). If 65 or older than the gross income must be more than $11,200 ($10,950 in 2011). If your filing status is Married and living with your spouse as of the last day of the year and both people are under age 65 then the gross income must be more than $19,500 ($19,000 in 2011). If one over 65 and one 65 or older then the gross income amount must be more than $20,650 (20,650 in 2011). If both people are 65 or older then the gross income must be more than $21,800 ($21,300 in 2011). If your filing status is Head of Household and under age 65 then the gross income must be more than $12,500 ($12,200 in 2011). If 65 or older than the gross income must be more than $13,950 ($13,650 in 2011). If your filing status is Widow(er)and under age 65 then the gross income must be more than $15,700 ($15,300 in 2011). If 65 or older than the gross income must be more than $16850 ($16,450 in 2011). If your filing status is Married filing a separate return the the gross income must be more than $3,800 ($3,700 in 2011) regardless of the age.

Generally, you must pay estimated tax for the current year if you expect to owe at least $1,000 in tax for the current year, after subtracting your withholding and refundable credits and you expect your withholding and refundable credits to be less than the smaller of: 90% of the tax to be shown on your current year tax return, or 100% of the tax shown on your prior year tax return. Your prior year tax return must cover all 12 months. These percentages may be different if you are a farmer, fisherman, or higher income taxpayer. You do not have to pay estimated tax for the current year if you were a U.S. citizen or resident alien for all of the prior year and you had no tax liability for the full 12-month prior year tax year. You had no tax liability for the prior year if your total tax was zero or you did not have to file an income tax return.