Remember we also do:
Please review these items for business taxes....
We are an approved IRS Fresh
Start Program center.
Mike McVay, Tax Accountant
Preparing for year-end closeout of your business bookkeeping can be a daunting task. McVay makes it simple. In December you can receive our year-end discounts if you use our QuickBooks Review and year-end close out services. Contact us for appointments between December 1st and December 23rd. We can work remotely or I can visit your office. Free evaluation of your QuickBooks Data is available. If your required to send 1099's for 2019 for anyone making over $600.00 I can help. We have a full e-file 1099 system that not only sends your recipients but will efile with the IRS. You must reserve this service prior to December 31st. Tax Filing Starts January 21st 2020.
McVay - Taking Business to the next level with Virtual Accounting Services. Accurate and more Affordable than ever.............
What is the IRS Fresh Start Program? The IRS Fresh Start Program is a program that is designed to allow taxpayers to pay off substantial tax debts affordably over the course of six years. Each month, taxpayers make payments that are based on their current income and the value of their liquid assets. By the end of six years, their tax debts should be paid off in full. Get help today - Free Consultation 850-725-5696.
This program simplifies the process of paying back hefty tax debts. It also helps people avoid many of the detriments of owing a tax debt to the IRS including:
The IRS initiated its Fresh Start Program in 2012 and expanded it in 2017 to ease the financial burdens of taxpayers who owe up to $50,000 in taxes. It is available to both business owners and individual taxpayers.
Moreover, the premise of its design took into consideration the hardships faced by people who experience circumstances like unemployment. Taxpayers who are unemployed for longer than 30 days may be eligible to have their IRS penalties waived. They also could have request a six month extension to file and pay their taxes without fear of costly IRS penalties.
Repayment Options under the IRS Fresh Start Program The IRS Fresh Start Program offers three repayment options to taxpayers. All three options allow people to pay off their tax debts legally and satisfactorily. They also allow people to avoid further penalties and interest that could cause undue financial hardships.
The first option available to people is called an extended installment agreement. An extended installment agreement is designed for people who owe $50,000 or less to the IRS. It grants taxpayers up to six years to pay off what they owe without incurring additional penalties and interest. It also stops IRS collection activities like wage garnishments, tax liens, and seizure of assets.
This option is one of the most commonly utilized under the IRS Fresh Start program. The payments that taxpayers make each month will be based on how much money they currently make along with the value of the assets they have at their disposal. The payments are designed to be affordable so taxpayers can make them on time and without financial difficulties each month.
Mike McVay, IRS Fresh Start Program Authorized - 850-725-5696
Back taxes are not an issue at our firm!
The Cons of using Turbo Tax:
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5336 N Blue Angel Pkwy
Pensacola, FL 32526
See if you qualify for IRS hardship relief
Bookkeeping takes up more time than you can afford!
If your business is growing, you can only get away with Do-It-Yourself bookkeeping for so long.
Maybe you have a really great spreadsheet template you found online. Maybe you even shelled out for some accounting software. But as your business expands and your financials get more complex—you’re going to get up one day, look at yourself in the mirror, and say, “I need to hire a bookkeeper.”
While there’s no hard-and-fast rule to when you should bring on hired bookkeeping help, there are some common, telltale signs that entrepreneurs experience just before they reach the tipping point.
If you’re suffering from any of the following symptoms, it’s probably time to hire a bookkeeper.
Don’t take your own time for granted. Not only does overworking lead to burnout, but every minute you spend on a task has a dollar equivalent.
First, start tracking how much time you spend per week on bookkeeping. Then, using an online calculator, determine how much your time is worth, and figure out how many “dollars” you spend on bookkeeping per month.
Compare your “salary” as your own bookkeeper against the price of professional bookkeeping. Once you treat the time you spend bookkeeping as an actual expense in cash, you’ll have a better idea of whether you should keep doing it.
When you fall behind on bookkeeping, your books stop reflecting the actual state of your finances. That makes it harder (sometimes impossible) to understand cash flow and accurately gauge the health of your business.
For instance, if your Cost of Goods Sold (COGS) hasn’t been updated in six months, you can’t subtract if from your revenue in order to determine how much profit you’ve earned in that time.
Which means you’re blind to how much money you’re actually making—and the steps you can take to increase your income.
What’s more, if your books aren’t up to date, you’ll have a ton of catch up bookkeeping to do during tax season, making a typically stressful time of year even more difficult.
With a qualified bookkeeping solution, you can expect to receive monthly financial statements, so you’ll know where your money is going to and coming from.
You missed out on tax write-offs
Suppose you just found out that, since your home is more than 50 miles from your place of work, you’re allowed to deduct some of the cost of commuting.
That’s great news. Only, now you’re thinking about all the years you spent without filing this deduction, the extra money you could have saved, and how you could have spent it. Images of an in-ground pool dance in your head.
The sooner you know about small business tax deductions, and the sooner you take advantage of them, the sooner you’ll benefit.
Part of a bookkeeper’s job is to take every business expense you incur and categorize it properly. In the process of doing so, they’re able to spot obvious deductible expenses such as mileage.
Ultimately, an accountant with experience in your industry is most qualified to give you comprehensive guidance regarding tax write-offs. But many business owners only talk to their accountants during tax season. A good bookkeeper who understands your business’s needs can help you out during the rest of the year.
Mike McVay, QuickBooks Accountant (Certified) with his CFO services covers all your bookkeeping, accounting, payroll and tax filing obligations with reasonable rates for small business.
Call Mike @ 850-725-5696
Budgeting needs to include paying yourself too
“I think they should start by figuring out what their pay rate should be: Start by understanding your personal economics and what you require first and then try to back engineer your minimum salary into how much your business needs to make in sales in order to break even and pay yourself,” suggests Duran. “Don’t leave yourself out. Then figure out the fixed expenses, including your salary, and then variable costs and build from there.”
QuickBooks is by far the best option for any small to medium size business. McVay has customized plans starting at only $99.00 per month that would take the burdensome details of running a business. McVay does most or all of the data entry, downloads, adjustments, reconciliations, month end close out and financials for a very reasonable price. Leaving you to increase revenues and profits. Mike McVay is a Certified QuickBooks ProAdvior located in Pensacola, FL. He works with clients all over the USA.
McVay has streamlined the bookkeeping process to allow for lower cost when doing your daily, weekly or monthly bookkeeping task. A good accountant will always offer good business and tax advice to keep you on the right track. Some accountants will offer free or included advice and consultations if you are a regular monthly client.
“Entrepreneurs should remember that they are their own bosses, and what these means is that they need to be their own motivator and remember to plan for the future,” shares McVay. “This is a very common mistake that people make as they leave the workforce to start their own venture, or even when starting from scratch after college. I many times see how they overlook the importance of setting their own benefits such as: proper health and life insurance coverage, retirement accounts and other flexible spending accounts.” among others. A good accountant or financial advisor can help you choose the right path.
Bookkeeping makes tax filing less complicated.
When tax season rolls around and you must provide your accountant with the necessary documents for filing business taxes, having clean books substantially cuts down on the time it takes to prepare tax documents. Rather than rummaging through your business receipts, the accountant can focus on finding possible tax deductions, saving their time and your money.
Bookkeeping provides key insights into the overall health of a business.
Bookkeeping enables businesses to produce financial statements, which collect financial data and paint a clear picture of how your business is really doing. These statements help you manage cash flow, which is essentially how much cash is coming in and leaving your business at a given time. Cash flow projections are pivotal to the growth of a business, as they can entice potential investors and satiate existing ones. Understanding your business’s financial health eases making future plans involving hiring, expansion, and day-to-day operations. Financial statements, such as your balance sheet or income statement, give you the information you need to make decisions from an informed perspective rather than a taking a gamble.
Bookkeeping lessens the pain of an audit.
Businesses always run the risk of one day being audited. While it’s not something to look forward to, it’s definitely worth preparing for. Having all your bookkeeping organized and in one place will make it easier to retrieve your business’s financial information and can help avoid penalties or late fees.
There are an abundance of reasons it might be time for you to outsource, whether it’s assistance with driving growth or if you’re just struggling to keep up with these tasks on your own.
Outsourcing bookkeeping and accounting tasks come with a ton of benefits, like improving data security, increasing valuation, and saving time. Regardless of how in-tune you are with your business, financial guidance makes it significantly easier to discern the best next steps to meet your specific and unique goals.
If you own a new or small business, it doesn’t necessarily make sense to hire a full-time accountant, which will cost you. That doesn’t mean, however, you have to do it all on your own. Bookkeeping and accounting are challenging skill sets to learn, and it’s important that your business’ books and accounting are done right so you can make smart decisions and grow healthfully.
What is Outsourcing?
When you outsource anything, you’re giving specific business operations to a company outside of your own.
It may seem odd. After all, if you started your own business, why would you want anyone else to have a part in it?
The reality is that finance and accounting outsourcing (or FAO) has steadily become more and more popular in the business world for many years now.
In fact, as of 2018, nearly $33 billion is spent worldwide on outsourcing finance and accounting processes.
It has grown nearly 25 percent in the past five years and doesn’t show any signs of slowing down.
As odd of a concept as it may seem, it’s certainly nothing to scoff at.
Mike McVay, Accountant - 850-725-5696
Outsourcing becomes more and more popular these days, as more companies all over the country are turning to different advisors for outsourcing their business activities, and it’s no wonder. There are many advantages of outsourcing, and in today’s economy, it becomes a common practice. Most small business owners need to focus on their business operations, customers and profits, not paperwork and computer entry.
Here are some benefits of using a BPO (Outsource Business Process Officer)
Reduced operating costs
If you figure your lost productivity and what it cost if your doing these task in house the cost benefits of outsourcing your bookkeeping is huge. Cost are much lower than you may think. Some accountants such as Mike McVay @ HomeMcVay Business Services use the latest technology to accomplish these taxes. Reducing your cost and increasing your small business profits.
Focus on the core areas of the business
The most obvious and prominent benefit remains the fact that it saves money. Many of the companies and individuals that provide outsourcing services can get your job done at a lower cost
The biggest issues companies confront in their customer success programs is not collecting the data, but efficiently acting on it. This is the distinct skill set that specialized companies have been very successful in performing.
Access to the right toolsOutsourcing rules out the need for infrastructure costs as the outsourcing partner takes care of the business processes and therefore develops the infrastructure needed for providing successful accounting and payroll programs.
Thorough analysis and reportsA thorough analysis of your business journey is essential when it comes to analyzing the data and then following that with action. McVay provides custom application, reports and consulting to keep you a step ahead of the competition.
Many new businesses can start this full service accounting, bookkeeping, tax and payroll services for $150.00 per month. Discount pricing for all clients on monthly QuickBooks Online Subscriptions.
Mike McVay, Certified BPO - Certified QuickBooks ProAdvisor - Licensed Tax Return Preparer
5336 N Blue Angel Pkwy Pensacola, FL 32526
Mike@MikeMcVay.com * 850-725-5696
What is an IRS audit? How to be prepared and how an experienced business Accountant can lower your chances of an I.R.S Audit. - Why Turbo Tax has the greatest I.R.S Audits.
An IRS audit takes place when the Internal Revenue Service chooses to review a taxpayer's accounts to verify that tax laws are being followed. Audits aren't terribly common: Only 0.6 percent of individual returns were examined in the 2017 fiscal year, according to the IRS. But filing your return completely, accurately and honestly can reduce your chances of being pinpointed and increase the odds of a favorable outcome.
CREDITYou made typos or a math error.
It might be an honest mistake, but if something looks fishy, such as an incorrect Social Security number or calculations that don't add up, you may bring on additional scrutiny from the IRS. Be careful and check your work twice when filing taxes.
CREDITYou aren't reporting cryptocurrency.
"Cryptocurrency is going to be an emerging issue with the IRS," says Phyllis Jo Kubey, enrolled agent and certified financial planner in New York City. "A lot of people don't know that when they buy something with cryptocurrency, it’s a taxable transaction." If you're receiving bitcoin as income or successfully mining it, for example, these transactions may need to be reported. The IRS receives information from digital currency wallet Coinbase and may apply increased scrutiny to your tax return if it doesn't reflect the data provided.
- You earned a lot of money.
- You aren't reporting cryptocurrency.
- You are self-employed.
- You failed to report taxable income.
- You made typos or a math error.
- You have three consecutive years of business losses.
- You use round numbers.
- You deduct 100 percent of a business car.
- Something doesn't add up.
About Cryptocurrency – If you are unfamiliar with the term cryptocurrency, the short definition is a form of digital money that is not controlled by any central authority.
The first cryptocurrency created was Bitcoin, back in 2009. Since then, over 4,000 other cryptocurrencies have been created. Cryptocurrency can be digitally traded between users and can be purchased for, or exchanged into, U.S. dollars, euros, and other real or virtual currencies.
Tax Treatment – One of the big issues of cryptocurrency is how it is treated for tax purposes. The IRS says that it is property, so that every time it is traded, sold or used as money in a transaction, it is treated much the same way as a stock transaction would be, meaning the gain or loss over the amount of its original purchase cost must be determined and reported on the owner’s income tax return. That treatment applies for each transaction every time it is sold or used as money in a transaction.
Example A: Taxpayer buys Bitcoin (BTC) so he can make online purchases without the need for a credit card. He buys one BTC for $2,425 and later uses it to buy goods worth $500 (let’s say BTC was trading at $2,500 at the time he made his purchase). He has a $75 ($2,500 – $2,425) reportable capital gain. This is the same result that would have occurred if he had sold the BTC at the time of the purchase and used cash to purchase the goods. This example points to the complicated record-keeping requirement for tracking BTC’s basis. Since this transaction was personal in nature, no loss would be allowed if the value of BTC had been less than $2,425 at the time the goods were purchased. Of course, if the taxpayer in this example only sold a fraction of a Bitcoin – enough to cover the $500 purchase – the gain would only be $15: $500/$2500 = .2 x 2425 = 485; 500 – 485 = 15O the bright side, for most, cryptocurrency is generally treated as a capital asset, so any gain is a capital gain, and if the gain is held for more than year and a day, any gain will be taxed at the more favorable long-term capital gains rates. If the cryptocurrency is being held as an investment and the sale results in a loss, then the loss may be deductible. Capital losses first offset capital gains during the year, and if a loss remains, taxpayers are allowed a $3,000-per-year loss deduction against other income, with a carryover to the succeeding year(s) if the net loss exceeds $3,000.
When cryptocurrency is used as payment to an employee, the usual payroll withholding and reporting still apply, and if used to make payments to an independent contractor, 1099 form reporting is still required. If the individual receiving payment in cryptocurrency is subject to backup withholding, the payer is required to withhold the required amount. In all reporting and withholding instances, the amounts must be in U.S. dollars.
IRS Compliance Program – That brings us to the issue at hand. The IRS has begun sending letters to taxpayers; by the end of August, more than 10,000 taxpayers will receive one of three varieties of letters. If you have received one of these letters, do not ignore it! The IRS compiled this list of taxpayers that it feels has not been reporting their cryptocurrency transactions from various ongoing IRS compliance efforts. The following is a synopsis of the types of letters:
Letter 6173 – Requires a response from the taxpayer, either by the taxpayer providing a statement to the IRS that they have already complied with the required reporting or by filing a return that reports their cryptocurrency transactions. For situations where the taxpayer had already filed a return but had left off the cryptocurrency transactions, an amended return (Form 1040X) will need to be filed. Taxpayers who ignore this letter may face a full-blown audit by the IRS and could be subject to penalties.
Letter 6174 – This is a “soft notice” that does not require a response, and the IRS says it won’t be following up on it. However, the notice also warns that if the taxpayer had cryptocurrency gains and fails to amend their return or continues to be noncompliant on future returns despite receiving the letter, the taxpayer will be in hot water.
Letter 6174-A – The taxpayer isn’t required to respond to the letter but does need to correct their prior returns in which cryptocurrency transactions have been omitted. The IRS warns of future enforcement action if the taxpayer doesn’t amend their return(s) or file their delinquent returns. After receiving the letter, the taxpayer can’t use an excuse of not knowing the law for failing to report their cryptocurrency gains.
Last year, the IRS announced a virtual (crypto) currency compliance campaign to address tax noncompliance related to virtual currency use through outreach and examinations of taxpayers. The IRS has announced that it will remain actively engaged in addressing non-compliance related to virtual currency transactions through a variety of efforts, ranging from taxpayer education to audits and criminal investigations.
Taxpayers who do not properly report the income tax consequences of virtual currency transactions are liable for the tax, penalties and interest. In some cases, taxpayers could be subject to criminal prosecution.
If you have received one of these IRS letters – or even if you haven’t had correspondence from the IRS but have unreported cryptocurrency transactions from past years – and need assistance in responding to the letter or in preparing the amended or late original returns to report your cryptocurrency transactions, please contact us right away.
Mike McVay, Tax Accountant - 850-725-5696
Obamacare Tax Nightmare - If your paying some or all your tax credits back on your income tax for prior years, your not alone. We have options for you!
The flood of phones calls to my office (McVay Business Services) has begun. Over the past 3-weeks I have received over 10 calls regarding letters from the I.R.S. that demand some or all of their current or past year health care tax credits to be repaid. These letters are just starting to arrive in taxpayers mail boxes. Ask, why now? The reason is for years this administrative nightmare of advance credits to pay for health insurance have never been reconciled properly. Now that the I.R.S. has caught up on past year tax credit reconciliations with your yearly tax return filing the damage is now coming to light.
Why would I own money back for something I already received. The ACA law allowed the I.R.S to front credits to you and pay for your health insurance. This was great to allow the Gov. to help pay some or all of your health insurance so you had less or no out of pocket cost based on your last years income. This is fine if your income stays the same or goes down. Each year these credits are reconciled on your current years return and if you made more money than the past year you actually received more credit than was due to you. If you don't file a tax return and reconcile these credits you will now see your current health insurance credit disappear and you will be responsible for the entire cost of your monthly health insurance plan.
Because of the good economy, many taxpayers are seeing they owe money now as their income raises. I.R.S reports that the last 2 years, installment agreement request to pay back money to the I.R.S are up over 2000%. In 2019, as of August the I.R.S is still backlogged processing 2018 installment agreements.
Because the catch-up process has been completed at the I.R.S, letters are now being mailed to taxpayers that have either not filed prior year returns, missed reporting and reconciling their year end form 1095-A or made more money one year that may allow the I.R.S to demand this money back.
I have clients having to pay as low as a few dollars to thousands and even $17,000 based on their reported income and type of healthcare plan.
There are options however ! Mike McVay is a licensed tax preparer that not only has been in business over 20+ years, he has also teamed up with health insurance expert Richard Penrose of Coastal Family Insurance. Together Mike and Richard form a great partnership at their office located at 5336 N Blue Angel Parkway Pensacola, FL 32526.
We have options on both sides to help figure out these situations when it comes to income tax, health insurance, tax credits, deductions and credit repayment.
McVay has I.R.S Installment Agreements that can fit into your budget and get you back on track.
Call us today if you need any additional information. Both McVay Business Services and Coastal Family Insurance offers free consultation to navigate you through these rough waters.
Mike McVay, Tax Accountant 850-725-5696
Richard can help you figure out the Health Insurance Marketplace !
Coastal Family Insurance is owned and operated by Richard Penrose. We will take the time to explain and answer all of your questions. If we do not know the answer, we will find the answer. We strive to help our clients obtain the best possible insurance coverage at the best possible price. We will always do our very best for you our client.A service agency, Coastal Family Insurance is owned and operated by Richard Penrose. We will take the time to explain and answer all of your questions. If we do not know the answer, we will find the answer. We strive to help our clients obtain the best possible insurance coverage at the best possible price. We will always do our very best for you our client.
Is there anything more frustrating than purchasing an item for more than you expected to pay? Like taking a $1 candy bar up to the cashier with exact change in hand only to find out the price was $1.50. Today I was talking with a colleague and he was explaining how frustrated he has been with the local gas company. For the last three months, his utility gas bill was much higher than it had ever been. He called the gas company as was told by a representative that the readings on his gas meter were higher, that was that, and she could do nothing for him. Frustrated, he did a 3-year comparison of his gas bills and found his reading had never been so high. He took that information back to the gas company and through several phone calls and investigation by the gas company, found out the gas companies readings were being double counted for the last 3 months. The gas company recalculated and refunded, to my colleague, the overpayment. We are not all so fortunate (no the cashier would not take by $1 for the $1.50 candy bar). Moral of the story, know what you are paying for.
Are you a heavy QuickBooks Online (QBO) user? If so, you better listen up. I’ve been expecting this for a few years and started to doubt that it was coming, but here it is: Data usage pricing for QuickBooks Online. The makers of QuickBooks Online, Intuit, has created another version of QuickBooks Online called Advanced. Previously in the other versions of QBO (Self-Employed, Simple Start, Essentials, and Plus) you could have as many classes, categories, and accounts as you wanted. You were only limited by the features of each version. Now, it doesn’t matter what version you have been using, if you exceed one of the new usage limits, you will automatically be thrown into QBO Advanced beginning April 10, 2019.
So what are the limits?
CHART OF ACCOUNTS
250 accounts with Simple Start, Essentials, or Plus | UNLIMITED with Advanced
CLASSES AND LOCATIONS
40 combined in Simple Start, Essentials, or Plus | UNLIMITED with Advanced
1 with Simple Start | 3 with Essentials | 5 with Plus | 25 with Advanced
If you are a QBO user and exceed these limits, be prepared for a dramatic price increase with QBO Advanced. Current Intuit prices for QBO subscriptions are $20 for Simple Start, $40 for Essentials, $70 for Plus, and now $150 for Advanced.
Real world example: I do work for a local Non-Profit, who we just moved to from QuickBooks desktop to QBO Plus eight months ago. They only have one user of QBO but the move was prompted by 3rd party software as well as convivence of anywhere, anytime access. Because of the nature of the non-profit, they heavily use accounts/categories and classes. They have over 350 accounts in their chart of accounts and over 40 classes. With the new usage limits, they will be forced into QBO Advanced. Their monthly subscription cost will go from $60/month to $150/month. That is over $1,000 in increased annual costs, just for the subscription! The non-profit now has to make a decision before April 10th whether to pay the additional cost or put the candy bar back and switch back to QuickBooks Desktop.
If you don’t know where your QBO usage fits, Intuit has made it easy for you to monitor. While logged into QBO,
select the gear icon in the Toolbar, then Account and Settings, then Usage. If you have multiple companies, you will need to check the usage for each company.
This post is not to discourage businesses from going to QBO Advanced. My business is focused on Intuit products and supporting small businesses who use Intuit products. However, I do want you to make the best software decision for you and your business. There are options and ways to save money by using Intuit products. If you are thinking of using or currently using QuickBooks and wonder if you are getting the best bang for your buck, give us a call at (850) 725-5696 and we will walk you through all the options and find the best fit for you. Mike McVay, Accountant - Mike@MikeMcVay.com
McVay has options for QuickBooks Price Increases. McVay offers FREE or reduced fee monthly QuickBooks Subscriptions for new clients. We are also starting to use other online accounting software that are close to the current QBO platform at a lower price.
Full service bookkeeping for your small business. Only $99.00 per month. No extra fees ever ! Payroll services starting at only 75.00 per month. Over 20+ years of excellent service!
Mike McVay, Accountant has been a Certified QuickBooks ProAdvisor for over 20+ years. His streamline office administration has become one of the most popular services for small to medium size companies all over the Pensacola, Florida area for years. His 5-star rating and voted one of the TOP Accounting and Tax firms in Pensacola, FL shows his compassion, trust and guaranteed services to many small business owners.
QuickBooks Online fees have gone up again. Never pay full price again with McVay Business Services.
*to qualify for the 99.00 per month service, you can only have 1-bank and 1-credit card account with gross sales under 100k per year. Perfect for small or start-up companies.
Call Mike McVay, Accountant @ 850-725-5696 - Mike@MikeMcVay.com
Deadline to file individual tax returns (Form 1040) for the year 2018 or to request an automatic extension (Form 4868). An extension provides an extra six months to file your return. Payment of the tax is still due by April 15. You can submit payment for any taxes you owe along with the extension form
March 15, 2019 for corporations on a calendar year. Extended deadline is Sept. 15, 2019. The deadline for S corp and partnership returns is the 15th day of the third month following the end of the fiscal year if they are on a fiscal year rather than a calendar year.
Mike McVay, Tax Accountant
There is always the chance that an accident can occur while you are at work because of the hazards of your job, dangerous equipment, mistakes made by co-workers and many other reasons.
If you are injured on the job, who will pay your bills? Will you be covered by workers’ compensation? In fact, is your employer obligated to provide workers’ compensation benefits?
What is the Florida Workers’ Compensation Law?Working in Florida is a dream that many people hold. But that dream can easily turn into a nightmare when you are injured on the job. So, what is the law in Florida when it comes to workers’ compensation? Does your employer have to provide you with these benefits when injured?
In Florida, the law states that any business operating in any industry other than construction that employs at least four people, either full-time or part-time, must provide employees with workers’ compensation benefits. Any corporate officer who is labeled as exempt does not count as one of the four employees under Florida law.
Overview of Florida Workers’ Comp
Below, you will find a brief overview of how workers’ compensation is handled in Florida:
- You have 30 days to report the injury to your employer
- You have two years from the date you suffered the injury to file a claim for benefits
- A limit of $863 per week will be placed on benefits
- Benefits for impairment are decided based on the impairment rating you are assigned
- Any disability that will last less than 22 days will begin receiving benefit payments on day eight
- Benefits will begin paying out on day one for any disability that will last for more than 21 days
- Benefits will be limited to a total of six months for any psychiatric claims that arise from a physical injury
- Employees receiving either temporary partial disability or temporary total disability can receive benefits for up to 104 weeks
- Benefits will be limited to six months if you are receiving up to 80 percent of the regular wage you earn because you suffered an injury deemed to be critical
- Damages will be doubled for any injury suffered by a minor who was illegally employed
- Must seek medical evaluation and treatment from the doctor authorized by your employer’s workers’ compensation insurance provider (failure to do so could result in the denial of your claim)
- Any denial of a claim should be reviewed by an attorney
Florida & Alabama Workers Compensation Coverage
We can write any industry - No Minimum Employee Requirement
McVay Business Services - Employee Leasing and Workers Comp Experts
Mike McVay - Mike@MikeMcVay.com
Know If You’re Self-EmployedIf your income is from a business or service, for example, working as an independent contractor in sales, or a social media sensation to babysitting, housecleaning, gardening, and even being a freelance promoter, etc.; that type of income is self-employment income. Your self-employment income is reported on Schedule C or Schedule C-EZ, Profit or Loss from Business. However, you will be able to reduce the income you make by being able to claim business expenses, such as supplies, auto mileage, and cost of goods sold.
A QuickBooks ProAdvisor like Mike McVay, Certified QuickBooks ProAdvisor helps uncover industry-specific business deductions you may not have even known you were eligible for.
Withholding and Estimated TaxesIf you’re an employee, your employer withholds tax from your paychecks. If you are self-employed, you may have to pay estimated taxes directly to the IRS on set dates during the year. You are expected to pay estimated taxes if you expect to owe $1,000 or more annually.
All Income Must Be ReportedAlthough you can earn a certain amount of income each year without having to pay taxes or file a tax return, if you are required to file a tax return, all income you receive from any source should be reported on your the return. That includes income from side jobs, self-employment, barter exchanges, and any sort of fellowship for which you perform services. If the net income after subtracting expenses is $400 or more you are required to file a tax return and pay self-employment taxes, which will be included as a part of your personal income tax return on Form 1040.
Barter IncomeSometimes you aren’t paid in cash and instead, you receive services or goods in exchange for your self-employment work. That’s called bartering, and you must report the fair market value of the goods and services you receive. For example, if you spend the summer tutoring your neighbors’ children and you receive a credit for the restaurant they own or a bicycle from the bicycle shop they own, then the value of what you received is considered self-employment income to you.
Filing A Tax ReturnIf you can be claimed as a dependent on someone’s tax return, you’ll still need to file a tax return if your income exceeds the minimum gross income filing requirements, or if your self-employment income is $400 or more. Even if you aren’t required to file a tax return, you’ll still want to file if income taxes have been withheld from your paycheck since you may get that money back or it could also generate a tax refund if you’re eligible for any of the refundable tax credits like the American Opportunity Tax Credit or the Earned Income Tax Credit.
Don’t worry about knowing these tax rules. You can easily track your business income, expenses, mileage, and figure out your estimated taxes year round with QuickBooks. Mike McVay, Tax Accountant in Pensacola, FL can help you pay the least amount of tax.
Call Mike McVay today at 850-725-5696
Certified QuickBooks ProAdvisor & Licensed Tax Accountant Pensacola, Fl
Mike McVay, Accountant -Experienced IRS Tax Resolution Specialist
With over 20-years experience working with individuals, families & small business owners allows me to share helpful information and long term knowledge to help with their income tax, I.R.S tax issues and businesses.