From the staff at Raffensperger, Martin & Finkenbiner LLC
Please join us for our annual Holiday Celebration!
Friday, December 16
11:00am – 3:00pm
34 West Middle Street, Gettysburg, PA
RSVP to Sue Spangler (337-1414 or sue@rmfcpallc.com)
No one wishes to lose money on an investment. But, if it happens, the investor may at least be able to lower his or her tax bill. This article explains how capital losses can save tax, looks into the wash sale rule and offers some potential coping strategies. A sidebar looks at special considerations related to mutual funds.
Because shareholder-employees of S corporations aren’t subject to self-employment taxes on their respective shares of the company’s income, many such businesses minimize shareholder-employee salaries (which are subject to payroll taxes) and compensate them mostly via “dividend” distributions. But the IRS views overly minimized salaries as an improper means of avoiding payroll taxes. This article discusses the “reasonable” salary issue and suggests ways companies can minimize the odds of an IRS investigation.
Individuals in their 50s or 60s are probably starting to think more and more about retirement. Those who are not completely comfortable with the size of their nest eggs shouldn’t forget about “catch-up” contributions. This article looks at these additional amounts that workers age 50 or older can contribute to certain retirement accounts.
The year may be quickly drawing to a close, but there’s still time for individuals to take steps to reduce their 2016 tax liability. This brief article offers up seven last-minute tax-saving tips to consider.
The Pennsylvania Department of Revenue announced this morning that it has been notified by the State of New Jersey that it will not terminate an 40-year old reciprocal tax agreement between the states.
The agreement allows Pennsylvania residents to work in New Jersey but not pay New Jersey state income tax. The same goes for a New Jersey resident working in Pennsylvania.
Consequently, New Jersey employers will continue to withhold and remit Pennsylvania tax on its Pennsylvania employees, while PA employers will do the same for NJ employees.
New Jersey had previously decided to end the arrangement during a budget and spending battle within its State Legislature.
Pennsylvania had been sending notices to employers with information about the change to help those businesses and individuals that would be affected could prepare for the change. Those notices can now be disregarded.
The agreement has been in place since 1977 and Pennsylvania notes it is pleased it will continue
A Texas judge provided a preliminary injunction to the Labor Department’s New Overtime Rule that was set to go into effect on December 1.
The Gettysburg Adams Chamber of Commerce summarized the judicial action in an email to it’s members.
The Labor Department’s contentious overtime rule was blocked Tuesday by a federal judge in Texas, putting one of President Obama’s top regulatory initiatives in jeopardy.In a 20-page order, Texas U.S. District Judge Amos Mazzant issued a temporary injunction halting the rule nationwide.
“Due to the approaching effective date of the Final Rule, the Court’s ability to render a meaningful decision on the merits is in jeopardy,” he wrote. “A preliminary injunction preserves the status quo while the Court determines the department’s authority to make the Final Rule as well as the Final Rule’s validity.”
The rule would have extended overtime pay to more than 4 million workers starting Dec. 1, but the effective date has now been indefinitely pushed back. It would have required employers to pay overtime to most salaried workers who earn less than $47,476 annually, a much higher threshold than the current annual salary limit of $23,660.
It is unknown whether the litigation will kill the rule entirely, but a decision is likely not going to be made before Jan. 20.
Please call Raffensperger, Martin & Finkenbiner, LLC if you have specific questions.
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