Ask a CPA

Lenders usually require PMI if the mortgage loan is more than 80% of the home's purchase price. If you do not have the standard 20% down payment, there are ways to avoid the PMI. Speak to your local CPA about the 80-10-10 financing plan and other strategies to avoid the PMI.

A borrower pays (PMI) private mortgage insurance to protect the lender in case of payment default. If you have less than 20% to put down on the purchase of a house, you will be charged with PMI insurance. You can reduce the PMI by getting a fixed rate mortgage instead of a variable mortgage. Also the more you put down as a down payment, even if less than the 20%, this will reduce the amount of the PMI. Make sure there is a provision that allows you to stop paying PMI once the loan is less than 80% of the value of the home.

According to Federal law, you are entitled to a free copy of your credit report within 60 days of being denied credit. Ask the lender which credit bureau the lender dealt with in order to get your free copy. You may also contact one of the three major credit bureaus. Their names are Tran Union Corp, PO Box 390, Springfield PA 19064-0390, 1-800-916-8800. Experian (formally TRW) PO Box 9530, Allen TX 75013-2104. Equifax PO Box 105873, Atlanta GA 30348 1-800-685-1111. Speak to your local CPA if you need assistance obtaining a copy of your credit report.

Generally, you should consider consolidating if there currently are lower interest rates available with minimal or no loan origination fees. Also, verify that there are no penalty fees on the old loans for pre-payment. Other reasons to consider when consolidating is whether you will have trouble keeping track of, or paying, the monthly payments. Stretching the term of the loan will lower the monthly payment, but will increase the total interest cost over the term of the loans. Speak to your local CPA to see if loan consolidation is beneficial for you.

Beginning 1/1/11 you must use electronic funds transfer to make all federal tax deposits for employment tax's, corporation tax's and excise tax's. Forms 8109- and 8109-B Federal Tax Deposit Coupons can not be used after 12/31/10.
Generally electronic funds transfer are made using the EFTPS system. If you do not use EFTPS you can arrange for a trusted third party to make deposits on your behalf such as a payroll service or financial institution.
To enroll in EFTPS visit www.eftps.gov or call 1-800-555-4477 1-800-555-4477 . Speak to your local CPA about assisting you in signing up to the Federal Tax Payment System.

Unlike Social Security, there is no limit on wages or earned income for Medicare purposes. 1.45% is withheld on every dollar one makes. The employer is required to match this withheld amount.

Beginning 1/1/11 you must use electronic funds transfer to make all federal tax deposits for employment taxes, corporation tax's and excise taxes. Forms 8109- and 8109-B Federal Tax Deposit Coupons cannot be used after 12/31/10. Generally electronic funds transfers are made using the EFTPS system. If you do not use EFTPS you can arrange for a trusted third party to make deposits on your behalf such as a payroll service or financial institution. To enroll in EFTPS visit www.eftps.gov or call 1-800-555-4477 1-800-555-4477. Speak to your local CPA about assisting you in signing up to the Federal Tax Payment System.

If you’ve made the determination that the person you’re paying is an independent contractor, the first step is to have the contractor complete Form W-9 (PDF), Request for Taxpayer Identification Number and Certification. This form can be used to request the correct name and Taxpayer Identification Number, or TIN, of the worker. A TIN may be either a Social Security Number (SSN), or an Employer Identification Number (EIN). The W-9 (PDF) should be kept in your files for four years for future reference in case of any questions from the worker or the IRS. A penalty can be levied against you, the employer, for omission of this information on certain forms.

If the tax liability for a quarter is less than $2,500, it may be paid with the quarterly filing of Form 941. If the withholding is $2,500 or more, then it must be deposited on either a monthly or semi-monthly basis. The IRS will notify you each November as to whether you are a monthly or semi-monthly depositor. The IRS uses a one year look back period ending the preceding June 30th.

Employers must give or mail employees' copies B, C and 2 of Form W-2 on or before January 31st of the following calendar year. A W-2 must be issued if there was any withholding or wages that exceeds the amount of one exemption ($3,700 in year 2011) or to any employee you paid more than $600 in one year or to any person you paid an amount for services if your entity is a trade or business. An employer may be subject to penalties for noncompliance.