McCullough & Associates Blog

Jan 16, 2013

Auto Mileage Expense Deduction

If you use your vehicle for business use, or your business owns its own vehicle, you are allowed to deduct some of the costs for up keep of the vehicle. You can either use the actual expense method or the standard mileage rate method. 

Under the actual method, you must keep track of all of your actual business related expenses related to the vehicle. 

Under the standard mileage rate,…

Jan 15, 2013

IRS Requirements Regarding Forms W-9 and 1099-MISC

To avoid penalties, make sure you have a Form W-9 on file for any non-employees prior to issuing them a payment. Failure to do so will be considered by the IRS as an unlawful disregard to commit a fraudulent act. This can result in the payor being subject to backup withholding tax which must be reported on Form 945, Annual Return of Withheld Federal Income Tax, and the payor is subject…

Jan 14, 2013

Important 2013 Payroll Updates

As we begin 2013 and deal with the aftermath of the Fiscal Cliff, there are a few very important payroll tax updates that need to be explained:  

  • Medicare: In 2013 taxable Medicare wages paid in excess of $200,000 are subject to an additional 0.9% Medicare tax that will only be withheld from employees' wages. Employers will not pay the extra tax.
  • Expired…

Jan 11, 2013

Automated IRS System Helps College-Bound Students With Financial Aid Application Process

College-bound students and their parents typically want to make every dollar and every minute of the college experience count including money spent on tuition and time spent on the college financial aid application process.

The Internal Revenue Service is helping minimize the time spent on the completion of the Free Application for Federal Student Aid (FAFSA) form by automating access to…