Why Do Commission and Bonus Checks Get Taxed Higher?

Photo by 401(K) 2013

Are you a straight up salary kind of guy or gal? Or do you have a base salary and love it when the commission checks roll on in? Perhaps you are salary and get a bonus every so often. Whatever your case may be, all types are taxable. I mean of course they are! Good Ol’ Uncle Sam! The truth is, both commissions and bonuses are taxed differently than a simple salary. They are taxed as supplemental wages and the amount withheld is not the same.

Bonus Checks

A majority of your bonuses earned will be combined with your salary to make a grand total to be reported on your W-2 form. This amount will show in Box 1 on the W-2 form. However, if bonuses are paid in property or items rather than cash or check then you can receive under $1,600 tax free. This is only if your company has a plan that qualifies though. This is something you would have to ask your company. No matter what position you hold, even safety-related bonuses can be taxable if 10% or more of the employees are given this bonus.

Commission Checks

Your commission income is included in Box 1 of your W-2. The commission income is to be reported on your tax return just the same. No matter how you receive your commission, you are taxed in the year it is paid to you. Therefore, if you get commissions in advance, then you are taxed in that same year. It is all about when payment is received on your part. Not when the work is done.

What You Really Want To Know

Now, no matter what way your employer withholds taxes on commissions or bonuses, you will notice that the more you make, the more money that is withheld.  Keep in mind all that is withheld is simply an estimate of what is owed to the IRS. You might end up getting some of it back. You will have a better idea of what you owe or what kind of refund you will receive once you reach the end of the tax year and do your tax return with all of the final numbers. We are getting closer to that time of the year.

Jolly tax season!

Yours truly,
www.checkissuing.com

FOO FIGHTERS Just Dropped A Free EP, Saint Cecilia Because They Feel Like It

Sure, it's not metal, but it's pretty good if you're into that sort of thing.

The post FOO FIGHTERS Just Dropped A Free EP, Saint Cecilia Because They Feel Like It appeared first on Metal Injection.

By Volunteering and Helping Others, You Will Be Helping Your Business.

Photo by ccbarr

Now is as good of a time as any to volunteer as we enter the Holiday Season. There are plenty of ways to help out such as giving some change to the santa ringing a bell outside of your grocery store or to buy presents for those who don’t get presents or really anything for that matter. But there is an even better way to help. You can give so much more when you are giving your time, energy and resources. On top of that you can improve and grow your business and here is how.

Boost Morale

No matter how hard and long your work days might be, both employers and employees can feel empty and left unsatisfied without a cause. Get involved and see what everyone at the company is interested in. If there is a passion for a particular cause, then that might be what you as a group should make an effort in the name of. This will boost everyone’s morale and happiness. There is something so powerful in helping others. People might start showing up to work happier too!

Publicity

Of course this is not the reason to volunteer, but it sure does come along with it. Helping others does not go unnoticed. You company can benefit greatly by volunteering. You will be getting your business and its mission out there. It’s a win win situation.

Network

Connecting with people is not always so easy. You have to coordinate schedules, cancel appointments and get passed their secretary or assistant. Sometimes the only way is common ground or by chance. By letting your company out there you risk meeting some pretty fabulous contacts and look great while doing so. Volunteering is really special because you WANT to be there. You WANT to help. You are not getting paid to. So there should be good moods all around and new peers shall be gained.

Help The Community

Last and certainly not least, giving back to your community. The location of your business should be important to you and your business locations should be important to the community. If everyone lends a helping hand then everyone is happy and heck you might get even more support from your community. Embrace your business and respect and assist where you are needed. Such a small amount of help goes such a long way. You will benefit from your goodwill; as will others.

Again, it’s a win win situation. Get your team together and brainstorm as to where your help is most needed. Start there and good things will come.

USD Pullback: Technical, Not Fundamental

USD Pullback: Technical, Not Fundamental

18 U.S. Code § 924(c) - Possession Of A Handgun While Added Criminal activity

18 U.S. Code § 924(c) - Possession Of A Weapon While New Crimes


Except to the extent that a greater minimum sentence is otherwise provided by this subsection or by every other provision of law, someone who, during and in relation to any crime of violence or drug trafficking crime (including a crime of violence or drug trafficking crime that gives to have an enhanced punishment if committed by way of a deadly or dangerous weapon or device) for which the partner may be prosecuted inside a court of the United States, uses or posesses firearm, or who, in furtherance of any such crime, possesses a firearm, shall, beyond just the punishment provided for such crime of violence or drug trafficking crime.

Easy Quick Tips For Setting Up A Limited Liability Company (LLC)

A Limited Liability Company (LLC) is by far the most popular route to take for small businesses wishing to incorporate. Requirements and rules are different in every state, but know that it is quite simple to get through the process.  Follow these easy and quick tips and you will be on your way to entrepreneurship!

Choose Your Business Name

This is the fun part. The main law here is that it cannot already be used for another LLC in your state. Most sites where you set up your LLC will make sure of that before giving you the ok. The name will end with LLC or Limited Liability Company.

The LLC Articles of Organization Form

This part is simple. At this point in the game you do not have to specify who does what, only naming all of the members of the LLC. In addition you will notify the state of the business name, the purpose of your business, an office address and who your registered agent (individual who receives legal documents).

Have Your Local Newspaper Publish A Notice

ONLY do this if your state requires it. It is not necessary if it is not required. Be sure to find out if your state does require a newspaper notice! If so, publish before you file the LLC Articles of Organization.

Submit LLC Articles of Organization Form

You will submit this form to your Secretary of State. Some Websites do this for you if you choose the correct package. In addition to the form you will be sending the appropriate filing fees. The fees are also dependent on your state. They typically range from $50 to $1000. Caution: a number of states have a corporate tax separate from your filing fee. This also must be paid when you file.

Create an LLC Operating Agreement

An operating agreement will determine who is responsible for what both financially and management wise. The terms will also be a part of your agreement. No matter who you are working with or partnering with for your LLC. It is important you do this. Put everything in writing. A little more work in the beginning will save you many headaches business wise and personally later.

Increase Your Business's Productivity By Outsourcing The Tasks That Give You Headaches

If you have a small business, you have probably had your share of days when you feel completely overwhelmed with everything you have to complete before the day is over. You will likely have to take on several responsibilities in order to make sure your business becomes a success.

The more things you have to do, the more time you have to spend on those things that you may not be comfortable doing. What is the result of all of this? You will not have as much time as you would like to do the things you are comfortable doing.

There are not many small business owners who want to deal with some of the frustrations that come along with managing full-time employees. There are plenty of ways that you can handle these difficulties and challenges, and it does not matter if your business has just started or if it is in the growing stage.

One of those options is outsourcing. The purpose of outsourcing is to help your business become more profitable, while making the work of the owner streamlined. Outsourcing should also be used to increase your productivity. Outsourcing will allow you and your handful of employees to focus on growing the business and increasing the satisfaction of the customers and clients.

You should not be afraid to seek outsourcing. There are various tasks that businesses outsource, including accounting, check writing, and check issuing. You should strongly determine the areas of your business that need to be outsourced. If it is becoming a challenge to handle your accounting needs, outsourcing this task will allow you to focus on other areas of your business that you are familiar with.