Monthly Archives: February 2012
Payroll Cut Extended Through 2012
The 2 percent payroll tax cut has been extended through 2012 under the Middle Class Tax Relief and Job Creation Act of 2012 (the “Act”). The IRS has now released a revised Form 941. The Social Security tax rate for employee withholding will stay at 4.2 percent, two percentage points less than the 6.2… Read More »
Effective Use of QR Codes in Medical Practice
Quick response (“QR”) codes may be an effective way for physicians to market themselves to potential and existing clients. QR codes are barcode-like images that can store up to fourteen different types of data, including web links and phone numbers. These images may be placed on nearly anything from advertisements to business cards, and will… Read More »
House Votes to Repeal “CLASS Act” Program
The House of Representatives has voted to repeal a part of the health care reform bill that establishes a voluntary, long-term health care program. The program is formally known as the Community Living Assistance Services and Supports (“CLASS”) program. The Obama administration has taken the position that the CLASS program is not financially… Read More »
Should Your Medical Practice Affiliate with a Hospital? Considerations
The predicted trend after passage of the health care overhaul bill was that physicians would all sell out to hospitals. We are not seeing that happen in the manner predicted. In fact, we are seeing the opposite to some degree. In considering an affiliation with a hospital, another practice or any type of health care… Read More »
Does Your Employee Handbook Need “Technical” Updates?
It is important to remember that employee handbooks should be updated as technology improves and company procedures evolve. You should make sure that your employee handbook is updated to reflect modern technology and that it appropriately addresses employees’ use of the same. One issue is the use of cell phones. Do your policies clearly address… Read More »
LLC Owned by Married Couple Generally Not Treated as Disregarded Entity
If an LLC is owned solely by a married couple who file their taxes jointly, the question may arise whether the husband and wife can be counted as one member allowing the company to be treated as a disregarded entity? This would be beneficial because it would eliminate the need for separate federal and state… Read More »
Tax Deductions for Animal Caregivers
Individual taxpayers that help rescue and foster animals for a charitable organization may be able to deduct unreimbursed volunteer expenses as charitable contributions on their tax returns this year. The US Tax Court recently allowed a taxpayer that helps a local nonprofit by fostering cats in her home deduct associated unreimbursed expenses as charitable deductions. … Read More »
What is a Disregarded Entity?
If you have formed a limited liability company (“LLC”) by yourself, you may have heard it referred to as a “disregarded entity.” A disregarded entity is the default tax classification for a single-member LLC. Disregarded entities are generally treated as nonexistent for tax purposes. That is, all income, deductions, gains, losses, and credits are… Read More »
Benefits of Making an S Corporation Election
In an S Corporation, all income and losses are divided and passed through to its shareholders. The shareholders then report the income or loss of the corporation on their own individual income tax returns. A corporation can elect to be treated as an S Corporation by filing Form 2553. Eligibility restrictions to make the election… Read More »
Requirements to Comply with Nebraska Sales and Use Tax
The state of Nebraska has both a sales and use tax. Sales tax generally applies to transactions within Nebraska. On the other hand, the use tax applies when you purchase goods in another state for use in Nebraska and there is no sales tax on those goods when purchased. An example of the use tax… Read More »
