TAX PRO PLUS LA

Is the Temporary Deferral of Employee Payroll Tax Worth It?

President Trump issued a Presidential Memorandum on August 8, 2020, that directs the Treasury Secretary to use his authority to defer the withholding, deposit and payment of employees’ portions of Social Security taxes from September 1 through December 31, 2020. The goal is to put more money in the pockets of workers during the COVID-19 pandemic emergency. The deferral applies to the 6.2% tax on wages or compensation paid for a bi-weekly pay period of less than $4,000 or the equivalent threshold amount for other pay periods. In other words, employees with annual wages up to $104,000 are generally eligible for the deferral.

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Video: Watch Out for Tax Penalties

Watch this video to look at some of the more commonly encountered tax penalties and how they may be avoided.

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Are You Paying Too Much Interest on Your Home Mortgage?

Interest rates are currently at an all-time low, and it may be time for you to consider refinancing your existing home mortgage to take advantage of these lower rates. Doing so may substantially reduce your monthly mortgage payments. As you know if you have been watching the ads, some lenders are offering rates as low as 2.75%.

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IRS Extends the Opportunity to Defer Capital Gains

As part of tax reform put into place a couple of years ago, individuals are able to defer both short- and long-term capital gains into what are referred to as Qualified Opportunity Zone Funds (QOFs). What is nice about this is that only the actual amount of gain needs to be invested into a QOF to avoid taxes on the gain for the sale year. The gains invested in a QOF are deferred until you cash out of the QOF investment or December 31, 2026, whichever occurs first.

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How to Create Product Records in QuickBooks Online, Part 2

Once you’ve created your company’s product and service records, you’ll use them in numerous places in QuickBooks Online.

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