Ask a CPA

The Employer's Quarterly Federal Tax Return (Form 941) for the 1st period January-March is due by April 30. The Employer's Quarterly Federal Tax Return (Form 941) for the 2nd period April-June is due by July 31. The Employer's Quarterly Federal Tax Return (Form 941) for the 3rd period July-September is due by October 31. The Employer's Quarterly Federal Tax Return (Form 941) for the 4th period October- December is due by January 31st. If all the taxes were timely deposited for the current quarter, then the due date is extended 10 more days. If the 941 reports are not filed timely, there is a late filing penalty. There is also a penalty for late paying with associated interest on the balance due.

Yes. There are two Internet verification options you can use to verify that your employee names and Social Security numbers match Social Security's records. You can: Verify up to 10 names and SSNs (per screen) online and receive immediate results. This option is ideal to verify new hires. Upload overnight files of up to 250,000 names and SSNs and usually receive results the next government business day. This option is ideal if you want to verify an entire payroll database or if you hire a large number of workers at a time. While the service is available to all employers and third-party submitters, it can only be used to verify current or former employees and only for wage reporting (Form W-2) purposes. Register to Use the Social Security Number Verification Service (SSNVS) - at www.ssa.gov/bso/bsowelcome.htm.

If the business has 1 federal Identification number then 1 Form 941 should be filed. Employers with multiple locations or divisions must file one Form 941 per quarter. Filing more than one will cause processing delays and unneeded correspondence.

Generally, cash, petty cash, supplies, prepaid expenses, accounts and notes receivable, inventories and any other item that can be converted into cash within one year are classified as current assets. Cash is any medium of exchange that a bank will accept at face value. Notes Receivables are claims against debtors evidenced by a written promise to pay a certain sum of money at a definite time to the order of a specified person. Accounts receivable are claims against debtors which are less formal than note receivables that arise from sales of services or merchandise on account.

Generally, tangible assets used in business that are relatively fixed or of a permanent nature are termed fixed assets. Examples are land, buildings, equipment, machinery, fixtures, furniture, office equipment, and tools. The cost of the fixed asset is recorded in one account and the associated accumulated depreciation is recorded in another account.

A company's health or financial position is shown on a balance sheet. The balance sheet reflects a business' financial position at a particular date in time. The typical balance sheet displays the business' assets, liabilities and stockholders' equity. Assets and liabilities are classified into current and non-current categories. Assets are normally debit balances and includes what a business owns. Current assets generally relates to anything that can be converted into cash within one year. Fixed assets are more permanent, referred to as long term,(more than 1 year) which includes such assets as buildings, land, and equipment. Liabilities are normally credit balances and what the business owes. Current liabilities generally means anything which is owed within one year. Long term liabilities are debts expected to be paid back after one year, such as mortgages and loans. The difference between assets and liabilities is called stockholders' equity or net worth. Therefore the basic balance sheet equation is - Assets minus Liabilities = Stockholders' Equity or Assets = Liabilities plus Stockholders' Equity. Most audited financial statements are comparitive in nature illustrating a period verses a prior year period. Footnotes to the balance sheet are used to achieve adequate, informative disclosure when more detail is required.

Depreciation is the systematic charging of a portion of the costs of fixed assets against annual revenues over a period of time.

Generally, liabilities are everything a business owes to creditors. Liabilities that will be due within one year and paid out of current assets are termed current liabilities. Liabilities that are not due for more than one year are termed long-term liabilities. Examples of current liabilities include accounts payable, notes payable, salaries, interest and taxes payable. Examples of long-term liabilities include the portion of the mortgage or loans or notes payables not payable within one year.

The income statement is the profit and loss statement of a business. It shows the performance of a business over a period of time such as a month or quarter or year. The income statement is preferable prepared in comparitive form to show changes from the preceeding year. Extraordinary gains and losses of material amount should be shown seperately. Also for public companies earnings per share should be presented on the income statement. The basic accounting formula is Sales Revenues minus Expenses = Income or Loss.

The Statement of Retained Earnings reconciles the net income earned during a given period and any cash dividends paid with the change in retained earnings between the start and end of that period. The basic equation is Beginning Balance plus Net Income or loss for the period, minus Dividends Declared = Ending Balance. The Statement of Retained Earnings is frequently combined with the Income Statement.