Blog Archive

Payroll and Tax Requirements for Employing Domestic Workers

The IRS defines a household employer as someone who pays an individual to perform duties in or around his or her home. Employees falling within this category include nannies, senior caregivers, private nurses and housekeepers, to name a few. If the household employee is paid more than the $1,900 threshold for 2015, the homeowners are...

June 25, 2015 by The Rodman Team
Are You Using the Right Business Structure?

The business structure you use – sole proprietor, LLC, etc. – has tremendous impact on how your company operates and pays taxes. A business structure is simply an organizational framework. The IRS requires you to select one for your company, since this designation will determine the tax forms you’ll file as well as who is...

June 8, 2015 by The Rodman Team
Congress Provides Tax Relief and Help for the Disabled

Just before adjourning on December 16, the Senate passed the Tax Increase Prevention Act of 2014 (TIPA), which was passed by the House on December 3. The White House announced that President Obama will sign the law, which renews more than 50 expired tax breaks. This gives taxpayers just 10 days — excluding the federal...

December 18, 2014 by The Rodman Team
MA DOR Announces Two-Month Tax Amnesty Program for Qualified Massachusetts Taxpayers

According to a recent announcement by the Massachusetts Department of Revenue, this month approximately 300,000 qualifying taxpayers will receive a Tax Amnesty Notice informing them that they qualify for the tax amnesty program. The two-month amnesty program designed to encourage the payment of delinquent taxes by Massachusetts individuals and businesses, will run from September 1...

September 11, 2014 by The Rodman Team
Both Massachusetts and Feds Attempt to Spur R&D with Simplified Tax Credits

On August 13, a new economic development bill was signed into Massachusetts law by Governor Patrick. Among the many business development incentives was a restructuring of the Commonwealth’s research & development tax credit rules which is viewed by many as outdated and complicated. The new bill will allow businesses to opt for a an alternative...

August 28, 2014 by The Rodman Team
Banning Employee Non-Compete Agreements in MA – Compromise on the Horizon?

Special Guest Column by Christopher W. Sanzone, Esq., Sanzone & McCarthy, LLP Various forces in Massachusetts have been trying to bring a well-known staple of California employment law – a ban on non-competes in the employment context – to the Bay State by introducing two bills this past spring in the state legislature (House Bills 4082...

July 9, 2014 by The Rodman Team
Top 10 Issues To consider in Formulating Your Year-End and 2014 Tax Planning

As the year draws to an end, taxpayers will face a myriad of new taxes, tax changes, and new laws that may affect both their 2013 year-end and 2014 planning. To guide you in planning certain decisions, we have listed the top 10 issues that you should consider in developing your tax strategy: New 39.6% tax...

November 17, 2013 by The Rodman Team
First Year Write-Off Reduced in 2014

Here’s a reminder for you and other business managers that, for tax years beginning in calendar year 2014 and beyond, in the absence of extending legislation, one major tax break for assets used in business scheduled to be drastically reduced. Also, for most assets placed in service in calendar year 2014 and beyond, another tax...

October 22, 2013 by Rodman Admin
New Hike in Net Investment Income Tax

Starting in 2013, high-income taxpayers will face a 3.8% additional Medicare contribution tax on net investment income (the net investment income tax). Here’s an overview of the new tax and steps you can take to reduce its impact. This tax is an extra tax that is imposed in addition to your regular income tax. You...

October 4, 2013 by The Rodman Team
Understanding the New Massachusetts Sales Tax on Certain Computer Related Services

Effective July 31, 2013, certain computer related services will be subject to Massachusetts sales tax. The Massachusetts sales tax rate is 6.25%. Services Subject to Tax Under prior law, prewritten software and integration/modification services were not subject to sales tax. This new provision does not affect the charges for the prewritten software but will subject...

September 9, 2013 by The Rodman Team
What Professional Standards Apply to Business Valuations?

A common question posed to business valuation experts who testify in court is: “Did you follow business valuation and appraisal standards in performing your engagement?” The answer is likely to be: “Which ones?” There are a number of different standards that cover business appraisal practice. The USPAP Standards Require Appraisers to: 1. Understand and...

August 5, 2013 by The Rodman Team
Tax Codes Change for Same Sex Marriages

The Defense of Marriage Act (DOMA) made it federal policy to not recognize same sex couples as being married. The IRS has followed the federal policy spelled out in DOMA, and thus historically same sex couples have not qualified for filing joint federal tax returns. However, several states, including Massachusetts, have recognized same sex couples...

July 1, 2013 by The Rodman Team
Tips on Preparing for a 401(k) Audit

Annually, employers with large 401(k) plans – i.e. over 100 participants at the beginning of the year – generally must attach audited financial statements to their Form 5500 filing. While there is a lot of information required for the audit, there are a few things that can be done during the year to help make...

April 8, 2013 by The Rodman Team
Real Property Rental Income and the New 3.8% Unearned Income Medicare Tax

Beginning in 2013, taxpayers with modified adjusted gross income (MAGI) over $200,000 ($250,000 for a joint return or $125,000 for married filing separate) will be subject to a 3.8% surtax (“MCT”) on net investment income. Net investment income includes, income from rents, interest, dividends, annuities and royalties — unless this income is derived in the...

February 26, 2013 by The Rodman Team
Mass. Manufacturing Companies Must Update Certification of Entity Tax Status by April 1

Effective January 1, 2013, the state of Massachusetts is requiring classified manufacturers (see below for definition) or use the Massachusetts WebFile system to file an Annual Certification of EntityTax Status, due by April 1, 2013. By making this filing, the state’s list (Annual List of Corporations Subject to Taxation in Massachusetts) will be updated, and...

February 12, 2013 by The Rodman Team
Key Provisions of the “American Taxpayer Relief Act of 2012” Just Passed by Congress

Congress passed and the President signed the American Taxpayer Relief Act of 2012 (“Act”). The Act includes significant individual and business tax changes that will impact most American taxpayers. Some of the key provisions of the Act include: Individual Provisions 1. Income Tax Rates – The Act maintains 2012 income tax rates for individuals earning...

January 4, 2013 by The Rodman Team
Important Guidance on Additional 2013 Medicare Tax

Starting in 2013, prior health care legislation imposes an additional 0.9% Medicare tax on individual taxpayers receiving wages in excess of $200,000 ($250,000 for married couples filing jointly and $125,000 for married couples filing separately). These threshold amounts are not indexed for inflation. This tax is in addition to the regular Medicare rate of 1.45%...

November 20, 2012 by The Rodman Team
Major Tax Changes Coming – Time for 2012 Year End Planning!

Tax planning for 2012 is more complex than prior years due to many expiring tax provisions and the new taxes/tax rates that will be in effect for 2013. With the election behind us, it appears the path is set for President Obama and Congress to work towards setting tax policy for the coming year but...

November 13, 2012 by The Rodman Team
What You Need to Know about Multi-State Tax Compliance

Generally, a company is only required to file an income or franchise tax return with a state if it has nexus – i.e. sufficient physical presence in that state. Nexus can be triggered by three primary contacts with a state, including: Revenues earned (i.e. employees actually perform work in the state); Property owned or...

October 26, 2012 by The Rodman Team
Accounting for Operating Leases – Possible Changes in the Near Future

For entities that issue financial statements prepared based on generally accepted accounting principles (GAAP), there could be new accounting requirements for how operating leases (i.e. office leases, equipment leases, etc) are accounted for in their financial statements. The Financial Accounting Standards Board (FASB) had published an Exposure Draft, Leases, in late 2010 for comment. Since...

August 21, 2012 by The Rodman Team
How Will The New Health Care Law Tax Provisions Hit Your Pocketbook?

The Supreme Court upheld President Obama’s sweeping healthcare provision, the Patient Protection and Affordable Care Act, in a close 5 to 4 decision. Among other provisions, including the individual mandate to own health insurance, the Act provides for sweeping tax increases and reporting issues for both businesses and individuals. Many of these changes are effective...

July 10, 2012 by The Rodman Team
Take Advantage of a variety of Excellent SBA Loan Programs

“Many organizations can take advantage of a variety of great Small Business Association (SBA) loans and financing options,” explains Kathleen Kelly, Vice President, Commercial Lending Group, Cambridge Trust Company. Recently, Cambridge Trust Company became a part of the Small Business Administration’s Preferred Lender Program, or PLP. Here are just a few of the options available:...

June 13, 2012 by The Rodman Team
April 17th Tax Filing – Last Minute Strategy Tips to Consider

As you get ready to file your 2011 tax return, take a quick look at the list that follows. It’s a summary of little-known tax strategies that may save you money when you file your tax return. It pays to take a look. You may wind up owing Uncle Sam less than you thought, or...

April 4, 2012 by Rodman Admin
Payroll Tax Cut Extended by Congress

The President signed legislation extending the social security payroll tax cut for employees through the end of the year. This reduction was set to expire at the end of February. The payroll tax cut will return approximately $100 billion to taxpayers. The legislation extends the favorable social security withholding treatment for employees reducing the social...

March 1, 2012 by Rodman Admin
Act now! Congress considering 1603 extension in payroll tax bill

Congress is currently considering an extension of the 1603 program as part of the current payroll tax bill. This program has been very successful, and is an important part of the green economy. The Solar Power Advocacy Network and the Solar Energy Industries Association have created an advocacy letter for you to send to your...

February 14, 2012 by Rodman Admin
Thomas H. Astore, CPA, JD Promoted to Partner

Rodman & Rodman is pleased to announce that Thomas H. Astore, CPA, JD has been promoted to Partner. Tom brings over 20 years of experience to our Tax Department. He joined Rodman & Rodman in July 2008 as Tax Manager and was promoted to Tax Director in April 2009. Tom graduated from Hofstra University, cum...

January 16, 2012 by Rodman Admin
Payroll Tax Cut

The President recently signed into law the “Temporary Payroll Tax Cut Continuation Act of 2011” which consists of a two-month temporary extension of the payroll tax cut that’s in place for 2011, plus a parallel extension of a lower Self-Employment tax rate reduction. Under the new law, the reduced employee fica tax rate is 4.2%...

January 5, 2012 by Rodman Admin
QSBS Capital Gain and AMT Exclusion Set to Expire

Taxpayers can exclude 100 percent of gain, subject to certain limitations, from the sale or exchange of qualified small business stock (QSBS) issued after September 27, 2010, and before January 1, 2012. In addition, the gain is not considered an add back for alternative minimum tax purposes. The excluded gain is limited to the greater...

December 2, 2011 by Rodman Admin
2012 Pension Tables Released

The IRS has released the 2012 Inflation Adjustment amounts affecting dollar limitations for pension plans and other retirement related items for the tax year 2012. See below for all updates including a comparison to 2011 limitations....

November 15, 2011 by Rodman Admin
Take Advantage of 2011 Tax Breaks While They Last!

Year-end tax planning is especially challenging this year because of uncertainty over whether Congress will enact sweeping tax reform that could have a major impact in 2012 and beyond. Regardless of what Congress does late this year or early the next, there are solid tax savings to be realized by taking advantage of 2011 tax...

November 9, 2011 by Rodman Admin
Accelerated Depreciation Using Bonus and/or Current Expensing under IRC 179

Taxpayers can take advantage of two accelerated depreciation rules for the remainder of 2011 and 2012. As noted below, the 2011 rules provide greater benefits so please contact your Rodman Team Member to discuss depreciation options if you are planning to purchase additional depreciable business assets within the next year. Bonus Depreciation Under the Bonus...

September 28, 2011 by Rodman Admin
How Small Business Owners Can Protect Against Employee Theft

One of the challenges most small business owners face is putting financial controls in place to guard against employee theft while on a limited budget. Many small businesses we work with have, at the most, one or two people working in the finance department, and no controls in place to detect or deter fraud....

September 28, 2011 by Rodman Admin
Sales Tax Holiday Weekend

On August 13th and 14th, the Commonwealth of Massachusetts will not be collecting the 6.25% sales tax on tangible purchases of $2,500 or less that are for personal use....

August 9, 2011 by Rodman Admin
2010 Tax Relief Act Signed By President

by Thomas Astore, Tax Director On Friday, December 17th , President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Rodman & Rodman will provide a more comprehensive analysis of this law, but for now I thought it best to give you a brief summary of the Act”s...

January 7, 2011 by Rodman Admin
New COBRA Rules

COBRA Health Insurance Provisions Included in the American Recovery and Reinvestment Act of 2009 (“ARRA”) by Thomas Astore, CPA JD, Tax Manager health care The IRS recently issued additional guidance relating to the COBRA provisions adopted in the ARRA. In general, the new provisions provide a 65% subsidy for COBRA continuation premiums for up to...

May 22, 2009 by alexstetson
Rodman & Rodman, P.C. Founder Passes

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January 2, 2009 by alexstetson
Last minute tax reminders for 2008

by Thomas Astore, CPA JD – Tax Manager reminder As the end of the year approaches, we want to remind you of a few things that may help you save some money on your taxes and make the processing of your tax returns in early 2009 a bit easier: 4th Quarter Tax Estimates Are Due...

December 14, 2008 by alexstetson
Federal Bailout Acts Contain Several Tax Provisions

Federal Bailout Acts Contain Several Tax Provisions by Thomas Astore, CPA JD – Tax Manager Wall Street On October 3, 2008, President Bush signed into law a number of tax provisions which were included among the laws passed related to the bailout and stabilization of the financial markets. The laws enacted contained a significant number...

October 22, 2008 by alexstetson
Employment Challenges and Solutions for 2009

Employment Challenges & Solutions for 2009 Tuesday, September 16th, 2008 7:30 a.m. – 9:30 a.m. – Rodman & Rodman Offices Complimentary Breakfast Owners of small and medium sized businesses wear many hats. They are often the CEO, the CFO, Vice President of Sales & Marketing among other duties. That same owner is often the head...

September 22, 2008 by alexstetson
Massachusetts Sales Tax Holiday August 16th & 17th

Massachusetts Sales Tax Holiday August 16th & 17th tax holiday In what has become an August tradition, Governor Patrick recently signed into law a sales tax holiday for the 5th consecutive year. This year the sales tax holiday will be on Saturday, August 16th and Sunday, August 17th. The law is virtually identical to last...

August 15, 2008 by alexstetson
IRS Increases Mileage Rates Mid-year

IRS Increases Mileage Rates Mid-year gas pump The IRS has made a special adjustment to the optional standard mileage rate this year in recognition of rising gasoline prices. The current rate of 50.5 cents a mile will increase to 58.5 cents a mile as of July 1st. Many businesses use the optional standard mileage rate...

July 6, 2008 by alexstetson
Rodman Team Members Advance in Firm

alisonbob Rodman & Rodman, P.C. is proud to announce that Alison Kuczynski and Bob Leonard have recently been promoted to the position of Senior Accountant at Rodman & Rodman. As Senior Accountants, both Alison and Bob will be taking on more responsibility with respect to our accounting and tax engagements. They will be working more...

June 10, 2008 by alexstetson
Kathy Parker named Partner at Rodman & Rodman, P.C.

Kathy Parker named Partner at Rodman & Rodman, P.C. kathy Rodman & Rodman, P.C. is proud to announce that Kathy Parker, CPA has been named a Partner at the firm. Kathy has been an important member of the Rodman Team since 1999 assisting our clients with their accounting and tax needs. Kathy has been integral...

May 6, 2008 by alexstetson
Phone/Email Scams Using IRS Expand-Beware!

We notified you back in October about an increasing incidence of scams using communications that purport to be from the Internal Revenue Service (IRS). The goal of the scams is to trick people into revealing personal and financial information, such as Social Security, bank account or credit card numbers, which the scammers can use to...

February 22, 2008 by alexstetson
Home Office Deduction for Self-Employed Taxpayers

Home Office Deduction for Self-Employed Taxpayers The Basics Of A Valuable Deduction For Those Who Qualify home office If you’re self-employed and work out of an office in your home, and if you satisfy the strict rules that govern those deductions (discussed below), you will be entitled to favorable “home office” deductions – that is...

January 22, 2008 by alexstetson
Auto Mileage Rates

Just in – Auto Mileage rates for 2008 The Internal Revenue Service recently issued the 2008 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or...

December 7, 2007 by alexstetson
IRS Releases 2008 Limits on Important Tax Items

IRS Releases 2008 Limits on Important Tax Items IRS Logo The IRS has recently released information regarding the 2008 limits on various items of tax significance, including Social Security, pension limits, various deduction limits, etc. The following represents some of the key 2008 limits you should be aware of and includes some items which changed...

November 22, 2007 by alexstetson
Mass Health Care – Fair Share Contribution

Massachusetts Healthcare “Fair Share Contribution” Is your business going to have to pay? It is due November 15th. connector You may have heard about a possible payment employers will have to pay to the new Mass Health Connector program. This payment maybe as high as $295 per employee per year. The Fair Share Contribution is...

October 22, 2007 by alexstetson
SBA Loans

Consistency – The cornerstone of the brand experience by Kevin Hart, Principal – Hart-Boillot Advertising & Marketing – Newton, MA Branding The words “brand” or “branding” leave most folks scratching their heads. In a nutshell, the term brand denotes the perception(s) held by an individual or a demographic group about your company, product, service or...

July 22, 2007 by alexstetson
New Tax Law Highlights

New Tax Law Highlights The President just signed into law the Small Business & Work Opportunity Act of 2007. Though not as expansive as recent tax laws, there are some key provisions that we’d like our clients and friends to be aware of: * The most publicized change is the increase to the federal minimum...

June 22, 2007 by alexstetson
Self-directed IRAs, 529 Plans

Dear Larry, After a brief two month hiatus while we focused on completing our clients’ tax returns, The Rodman Report is back with some useful information and ideas that we hope you find helpful. In this month’s issue we have articles on the following: * Learn about the self-directed IRA. Investing in real estate is...

May 22, 2007 by alexstetson
Deducting 100% of Meals, Tips on Back Pain, The Gift of Customer Service

February is the shortest month of the year, and we are in the midst of our hectic tax season. We won’t let that deter us from bringing you another edition of The Rodman Report. In this month’s issue we’ll have articles on the following: * Not all meals are 50% deductible. Learn which meals do...

February 22, 2007 by alexstetson
Phone tax refunds, Updating QuickBooks, New Years Resolutions, more

Welcome to 2007! The holidays are behind us and a new year lies before us. We look to 2007 with great anticipation and optimism. The prevailing mood here and with many of the clients we are speaking with is one that senses 2007 is going to be a great year. We are going to try...

January 22, 2007 by alexstetson
Tax Credits, QuickBooks and Google, More

Information and Ideas You Can Use Winter and tax season are upon us. We won’t be fooled by the mild weather, however, and get too confident of an easy winter. This is New England after all. This month, we have a variety of articles including how to save some tax dollars while being environmentally conscious...

December 22, 2006 by alexstetson
Document Retention, QuickBooks, More!

Greetings and welcome to the second issue of The Rodman Report. In this issue, we’ve got some valuable news and information for our clients and friends. We now have an excellent resource for our clients who have questions regarding document retention. Our QuickBooks clients will get some valuable advice from Kathy Parker regarding the question...

October 22, 2006 by alexstetson
News from Rodman & Rodman, P.C., CPAs

Welcome to the 1st edition of The Rodman Report! The entire team at Rodman & Rodman CPAs hopes that you’ll find the information contained here helpful for you. The intent of the Rodman Report will be to make you aware of news and information that we think will benefit you, our clients and friends. Included...

September 22, 2006 by The Rodman Team
Preventing Fraud, Home Office, More!

Home Office Deduction – Do I Qualify? Your home may be a great place to get a significant tax deduction. If you qualify, you may deduct a portion of your homeowners insurance, home repairs, and utilities equal to the percentage of space the office occupies. Homeowners may deduct depreciation for the portion of the home...

11/19/2006 by alexstetson
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