Tips For Business Productivity |
|
Payroll Changes for 2013 - What You Need to Know
Additional Medicare Tax 2013
While many details remain unclear, beginning on January 1, 2013, new changes for Medicare tax go into effect for employees and self-employed individuals. The additional tax applies to individuals' wages, other compensation, and self-employment income over certain thresholds. Employers are responsible for withholding the tax on wages and other compensation in certain circumstances. The statute requires employers to withhold additional tax of 0.9% when employees are paid in excess of the following thresholds:
| Filing Status | Threshold Amount |
|---|
| Married filing jointly | $250,000 | | Married filing separately | $125,000 | | Single | $200,000 | | Head of household (with qualifying person) | $200,000 | | Qualifying widow(er) with dependent child | $200,000 |
The employer match is not affected by the statute and will stay continue at 1.45% even if an employee exceeds the threshold. The IRS plans to release drafts of revised forms 941 & 943.
Other income related items may affect the additional Medicare tax for higher income individuals. For more information go to:
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Questions-and-Answers-for-the-Additional-Medicare-Tax | |
The End of the Social Security Tax Holiday
Employees have had reduced Social Security (FICA) tax relief from 6.2% to 4.2% for the past two years. That relief is scheduled to expire after December 31, 2012, unless something is done by congress to extend it. With elections a week away and a lame duck congress, it is unlikely that an extension will be passed. If nothing is done, the employee deduction will revert to 6.2% on January 1, 2013.
Employers did not receive the tax holiday, so there will be no change in your rate.
The social security wage base increases to $113,700 for 2013.
401 (k) Maximum Contributions for 2013
The 401(k) maximum contribution for 2013 increases to $17,500, which is a 3% increase over 2012. This makes the second year in a row for an increase. The catch-up contribution for those 50 and over is $5,500.00, which remains the same.
|
Many thanks for all of the positive feedback on the newsletter. If you have a topic you would like us to address in an upcoming issue, please feel free to email staff@offsitebiz.com Sincerely,
Kimberly Shannon
Off-Site Business Services, Inc.
|
|
Special Offer
$25 VISA Gift Card for Referrals
| |
Refer a new client and receive a $25 VISA gift card after $100 of paid services.
|
|
|
|
The Pain of Change | |
Let's face it, change is painful. And no one likes pain. Even as beneficial as the end result may be, the pain is still there.
I met with my CPA a few weeks ago for lunch. Since we are in similar businesses, we talked about how we get new clients. He said that all of his new business comes from people who are looking for change. If people are happy with their current CPA, they won't change until they become unhappy.
That concept is true for all businesses. Change will come when the pain of staying the same is worse than the pain of change. Our job with a new prospect is to make them feel secure in making the change to you with the least amount of pain.
The first thing you need to do is create a convincing need for change. Asking questions about their reasons for change will help you understand their pain. This will allow you to educate them on the potential benefits of using your product or service to make the change less painful.
Avoid the high-pressure sales approach. You want to keep that customer once you get them. Successful change is based on feeling secure with making the change. You need to build trust with your client, and most clients don't want to feel pressured into using your product or service.
Be available. In today's competitive world, you must be reachable. Clients want to know that you can be easily accessible when they need help or have a question. Respond to phone calls, emails and text messages as soon as possible. If you don't, they will find someone who will.
| |
 |
|
Scan App for Your I-Phone or Tablet |  | |
Check the Turbo Scan app for your I-phone or tablet. It costs $1.99 but is an amazing tool. It uses your cell phone's camera to take a picture and create a PDF document. You can crop it and e-mail.
I tested it last weekend. Made scans of various documents, emailed them to myself, and printed them to my wi-fi printer directly from my I-Phone.
Thanks, James DiMambro, of Maxideo for the tip on this great app!
|
|
|
