Category Archives: General

Join us in the biggest opportunity to hit East County – the USS Ranger

The Bookkeeping Company has partnered with the USS Ranger Foundation in an exciting community project that will positively impact the whole region and there is opportunity for everyone to get involved.

How much do you know about the efforts to bring the retired supercarrier USS Ranger to the Chinook Landing Marine Park area on the Columbia in Fairview, Oregon?  Here are the highlights:

A Community Heritage Center will be created that will serve not only East County but the states of Oregon and Washington and include:

  • Educational and Vocational Training Opportunities
  • Museum for all Branches of the Service
  • Memorial for all Veterans
  • Civic and Convention Space for All
  • Economic Development for the Region
  • Emergency Preparedness Site for Disasters

This project is well on it’s way to a scheduled opening in 2015 and will bring an estimated 350,000 visitors to the ship, with an expected impact of 46 million dollars a year into the local economy and over 500 direct and indirect jobs.

Support has been fantastic: all local cities (including Portland and Vancouver), Senator Merkley, Congressman Blumenauer, Senator Wu, the Oregon State Legislature just passed a joint resolution in support, Clackamas County, Multnomah County Commissioner Diane McKeel, Business Organizations, Tourist Organizations, Veterans Groups and many, many individuals. It’s hard to find a project of this size that has this much broad support.

For more information on the project, visit the website at http://www.USSRanger.org. The Project Overview can be found on the lower right  hand side of the Home Page.

There are many ways to get involved in this exciting project!

  • Volunteer:
    • Contact Ron Witherup, Volunteer Coordinator at Ron.Witherup@USSRanger.org. There are opportunities to help at summer festivals, hand out flyers, get your businesses involved, help in the store and more!
  • Donate:
    • Contact Shannon Chisom, Director of Development at Shannon.Chisom@USSRanger.org or call 503.750.3785. Each and every dollar is important right now! We have a Founding Partner’s Club to join, or just drop your spare change.
    • You can also donate online at www.USSRanger.org
  • Stay posted on our progress. Join one or more of our social media sites:
  • To find out more about getting involved, contact Shannon at Shannon.Chisom@USSRanger.org or call 503.750.3785.

This will be the biggest thing to hit East County in years, don’t miss your chance to be a part of the excitement. The Bookkeeping Company is doing its part.  How about you?

How sharp are your business tools?

You own your own business!
Are your business tools in order?
Review…Revise…Update.

You’ve started your business! You’ve made all the decisions to get it going, laid out a business plan, purchased product, engaged sales personnel, hired office staff, found a trustworthy bookkeeping company, and you’re actually making it grow! So exciting, so fun, and so rewarding!

Now the economy has become tougher than it used to be. It takes us all back to when we first started our business. Now is the time to make sure your business is on track and will continue to grow and make the income you know it is capable of producing and giving you what you actually want – autonomy, creativity, decision-making, and top profits!

Let’s review for a moment where you need to be. Does your business have:

  • A working business plan…
    • Does it need to be revised and updated?
    • Is it reflecting the current economy and forecasted growth?
  • A strong accounting system…
    • Are you communicating well with your tax professionals?
    • Are you open to their suggestions?
  • An updated business profile…
    • A good business profile describes your company in a strong, brief and concise manner and is highly effective as a sales piece complementing your other marketing tools.
  • Does each of your business principals have a strong résumé…
    • When you are a business owner/principal, a personal résumé is a strong promotional piece used in a wide-range of your business activities. Depending upon the type of business you operate, your résumé may be used for:
      • Educating your customers about your skills and prior experience.
      • Banking – your bank may require a personal résumé when conducting business with them.
      • Marketing – your marketing packet should include specific details on the business owners/principals.

All of these tools promote your business in-depth and with full disclosure. Build your business…make money…enjoy what you love to do! Beat the economy and make sure your business is currently on track to keep growing during this tight market. As your business grows, you must constantly review, recheck and know where you’re heading. Plan, plan, plan and stay ahead of the pack! Use your business professionals effectively.

From:  A Personal Scribe Resume Writing & Design; www.apersonalscribe.com

What you need to know about personal property assessment and taxation

Personal Property Assessment and Taxation

From the Oregon Department of Revenue

All personal property is, by law, valued at 100 percent of its real market value unless exempt by statutes. Personal property is taxable in the county where it is located as of the assessment date, January 1 at 1 a.m.

Taxable personal property
Taxable personal property includes machinery, equipment, furniture, etc., used previously or presently in a business (including any property not currently being used, placed in storage, or held for sale). Examples of taxable personal property:

  • Amusement devices/equipment
  • Non-inventory supplies
  • Barber and beauty furniture/equipment
  • Garage and service station tools/equipment
  • Leased equipment
  • Medical equipment
  • Movable machinery, tools, and equipment (such as logging and construction equipment, lift trucks, and equipment used in service industries)
  • Office furniture/equipment
  • Store furniture/equipment
  • Libraries such as repair manuals, electronic media, compact discs, videos, tapes, sample books, law books
  • Fixed load/mobile equipment
  • Floating property

Tax–exempt personal property
These items are exempt from property tax:

  • Intangible personal property. Money at interest, bonds, notes, shares of stock, business records, computer software, surveys and designs, and the materials on which the data are recorded (paper, tape, film, etc.) (ORS 307.020).
  • All items held exclusively for personal use. Household goods, furniture, clothing, tools, and equipment used exclusively for personal use in and around your home (ORS 307.190).
  • Farm animals. Livestock, poultry, fur-bearing animals, and bees (ORS 307.394).
  • Inventories. Items of tangible personal property which are or will be sold in the ordinary course of business (materials, containers, goods in process, and finished goods) (ORS 307.400).
  • Farm machinery and equipment (ORS 307.394).
  • Licensed vehicles other than fixed load/mobile equipment (ORS 801.285).

Filing your personal property tax return

  • Each individual, partnership, firm, or corporation that has taxable personal property must file a return by March 1.
  • Major industrial properties appraised by the Department of Revenue will report on an industrial property return furnished by the department.
  • For all other accounts appraised by the county assessor, a return form may be mailed to you by the county assessor prior to January 1 if you were assessed the previous year. You must report property you own or had in your possession as of January 1 at 1 a.m. If you do not receive a form from the assessor, you are still obligated to obtain and file a personal property tax return. There is a penalty for late filing. If you need help completing the form, contact your county assessor’s office.
  • If you sell your business, notify the county assessor to avoid future liability on the personal property.

The Bookkeeping Company will build a file and track your assets as your bookkeeping is being done.  Then all you will need to do is review the asset list annually and give us the updates of items no longer in your control.  We can then handle everything else for you.

Tax Season Starts on Time for Most Taxpayers; Those Affected by Late Tax Breaks Can File in Mid- to Late February

WASHINGTON — Following last week’s tax law changes, the Internal Revenue Service announced today the upcoming tax season will start on time for most people, but taxpayers affected by three recently reinstated deductions need to wait until mid- to late February to file their individual tax returns. In addition, taxpayers who itemize deductions on Form 1040 Schedule A will need to wait until mid- to late February to file as well.

The start of the 2011 filing season will begin in January for the majority of taxpayers. However, last week’s changes in the law mean that the IRS will need to reprogram its processing systems for three provisions that were extended in the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 that became law on Dec. 17.

People claiming any of these three items — involving the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction as well as those taxpayers who itemize deductions on Form 1040 Schedule A — will need to wait to file their tax returns until tax processing systems are ready, which the IRS estimates will be in mid- to late February.

“The majority of taxpayers will be able to fill out their tax returns and file them as they normally do,” said IRS Commissioner Doug Shulman. “We will do everything we can to minimize the impact of recent tax law changes on other taxpayers. The IRS will work through the holidays and into the New Year to get our systems reprogrammed and ensure taxpayers have a smooth tax season.”

The IRS will announce a specific date in the near future when it can start processing tax returns impacted by the late tax law changes. In the interim, people in the affected categories can start working on their tax returns, but they should not submit their returns until IRS systems are ready to process the new tax law changes.

The IRS urged taxpayers to use e-file instead of paper tax forms to minimize confusion over the recent tax changes and ensure accurate tax returns.

Taxpayers will need to wait to file if they are within any of the following three categories:

  • Taxpayers claiming itemized deductions on Schedule A. Itemized deductions include mortgage interest, charitable deductions, medical and dental expenses as well as state and local taxes. In addition, itemized deductions include the state and local general sales tax deduction extended in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 enacted Dec. 17, which primarily benefits people living in areas without state and local income taxes and is claimed on Schedule A, Line 5. Because of late Congressional action to enact tax law changes, anyone who itemizes and files a Schedule A will need to wait to file until mid- to late February.
  • Taxpayers claiming the Higher Education Tuition and Fees Deduction. This deduction for parents and students — covering up to $4,000 of tuition and fees paid to a post-secondary institution — is claimed on Form 8917. However, the IRS emphasized that there will be no delays for millions of parents and students who claim other education credits, including the American Opportunity Tax Credit and Lifetime Learning Credit.
  • Taxpayers claiming the Educator Expense Deduction. This deduction is for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250. The educator expense deduction is claimed on Form 1040, Line 23, and Form 1040A, Line 16.

For those falling into any of these three categories, the delay affects both paper filers and electronic filers.

The IRS emphasized that e-file is the fastest, best way for those affected by the delay to get their refunds. Those who use tax-preparation software can easily download updates from their software provider. The IRS Free File program also will be updated.

As part of this effort, the IRS will be working closely with the tax software industry and tax professional community to minimize delays and ensure a smooth tax season.

Updated information will be posted on IRS.gov. This will include an updated copy of Schedule A as well as updated state and local sales tax tables. Several other forms used by relatively few taxpayers are also affected by the recent changes, and more details are available on IRS.gov.

In addition, the IRS reminds employers about the new withholding tables released Friday for 2011. Employers should implement the 2011 withholding tables as soon as possible, but not later than Jan. 31, 2011. The IRS also reminds employers that Publication 15, (Circular E), Employer’s Tax Guide, containing the extensive wage bracket tables that some employers use, will be available on IRS.gov before year’s end.

Have you taken your business entity temperature lately?

Is your current business entity still the right one for you? Businesses grow – hopefully. Businesses change – always; which is why it’s good practice to review your business entity periodically.

If you’ve made some big changes this year in the size or scope of your business (like: accumulated more assets and/or increased liabilities); it’s definitely time to re-take your business entity temperature.

To get the most out of your business it’s important to have the right business structure. The proper entity type can help maximize your financial and operational success; and is important in determining your limitations and liabilities.

Your accountant or attorney can help you decide what type of business structure best fits the needs of your company today. But here’s a handy comparison chart to get you started:

Business Comparison Chart:

C Corporation

Subchapter S Corporation

Limited Liability Company

General Partnership

Sole Proprietor
Owners have limited liability for business debts and obligations

X

X

X
Created by a state-level registration that usually protects the company name

X

X

X
Business duration can be perpetual

X

X

X
May have an unlimited number of owners

X

X

X
Owners need not be U.S. citizens or residents

X

X

X

X
May be owned by another business, rather than individuals

X

X
May issue shares of stock to attract investors

X

X
Owners can report business profit and loss on their personal tax returns

X

X

X

X
Owners can split profit and loss with the business for a lower overall tax rate

X
Permitted to distribute special allocations, under certain guidelines

X

X
Not required to hold annual meetings or record meeting minutes

X

X

X

Contact The Bookkeeping Company for assistance in identifying the best entity for your business. Chart source: The Company Corporation.

Social Security Number Randomization

The Social Security Administration (SSA) is changing the way Social Security Numbers (SSNs) are issued. This change is referred to as “randomization.” The SSA is developing this new method to help protect the integrity of the SSN. SSN Randomization will also extend the longevity of the nine-digit SSN nationwide.

The SSA began assigning the nine-digit SSN in 1936 for the purpose of tracking workers’ earnings over the course of their lifetimes to pay benefits. Since its inception, the SSN has always been comprised of the three-digit area number, followed by the two-digit group number, and ending with the four-digit serial number. Since 1972, the SSA has issued Social Security cards centrally and the area number reflects the state, as determined by the ZIP code in the mailing address of the application.

There are currently 435 million numbers available for assignment. However, the current SSN assignment process limits the number of SSNs that are available for issuance to individuals by each state. Changing the assignment methodology will extend the longevity of the nine digit SSN in all states. On July 3, 2007, the SSA published its intent to randomize the nine-digit SSN in the Federal Register Notice, Protecting the Integrity of Social Security Numbers [Docket No. SSA 2007-0046].

SSN randomization will affect the SSN assignment process in the following ways:

  • It will eliminate the geographical significance of the first three digits of the SSN, currently referred to as the area number, by no longer allocating the area numbers for assignment to individuals in specific states.
  • It will eliminate the significance of the highest group number and, as a result, the High Group List will be frozen in time and can be used for validation of SSNs issued prior to the randomization implementation date.
  • Previously unassigned area numbers will be introduced for assignment excluding area numbers 000, 666 and 900-999.

These changes to the SSN may require systems and/or business process updates to accommodate SSN randomization.

If you have any questions regarding SSN randomization or its possible effects to your organization, please see the related Frequently Asked Questions or email your question(s) to ssn.randomization@ssa.gov.

[1]

[1] www.socialsecurity.gov

Your e-mail can bite you

Since we are now in the digital age, and communication is no longer face to face or over the phone, here are some things to keep in mind while e-mailing.

 Your e-mail can bite you! Unfortunately, just one small error in judgment can cost you.

To stay out of trouble:

  1. Know what investigators look for – So called Hot words like “insider trading”, “illegal” and subtle language like “you know, that thing we talked about”. And shifts in e-mail habits (employee who normally e-mails during business hours starts e-mailing either late at night or early in the morning)
  2. Check subject lines
  3. Don’t edit old e-mails and send, take the time and write a new one.
  4. Don’t gossip – keep personal e-mails personal; don’t send them out while at work.

Remember: Even though your e-mail may be to one person, it may be read by many people and therefore open to general scrutiny. It takes only a few moments of double checking to protect yourself.  Always proofread before sending.[1]

[1] The General Ledger, April, 2010

HIRE Act 2010

Take advantage of this limited time opportunity for your business to save money.

HIRE Act 2010

Under the Hiring Incentives to Restore Employment (HIRE) Act enacted March 18, 2010, two new tax benefits are available to employers hiring certain workers between February 4, 2010 and January 1, 2011.

1.      If your business hires a qualifying previously unemployed or part-time individual, you may be eligible for a tax exemption.

The basic employee qualifications for the tax exemption are as follows:

  • Begins working between February 4, 2010 & December 31, 2010.
  • Worked less than 40 total hours in the previous 60 day time period and signs a statement (IRS form W-11) certifying that this is true.
  • Was not hired to replace another employee unless that employee left the position voluntarily or was terminated for cause.
  • Is not a relative of the employer.

For these qualifying employees, the employer is provided an exemption from the employer’s 6.2% share of the social security tax.

2.      You may also qualify for the New Hire Retention Credit.

The HIRE Act increases the general business tax credit for each employee that meets the above qualifications and the following:

  • The employee is retained for at least 52 consecutive weeks.
  • The employee’s pay in the second 26 week period must equal or exceed 80% of the pay in the first 26 week period.

Employers are eligible to receive this tax credit for each employee meeting the above criteria in the amount of the lesser of either $1000 or 6.2% of the wages paid to the employee over the 52 week period.

 Opportunities to educate yourself about the new tax incentives:

  •  For answers to IRS frequently asked questions regarding the HIRE Act, click here.
  • The IRS is offering an educational Webinar on July 8th covering this new tax. You can register for this 50 minute tutorial at the following web address. www.visualwebcaster.com/event.asp?id=69705