McVay adds Advanced Reporting and Predictive Analytics to his
line of accounting products.  

The current age of information and digitalization has brought with it new technologies and methods for improving business operations and maintaining competitive advantage:

• New big data technologies enable cost-effective storage, processing and analysis of large amounts of data;
• Modern and intuitive user interfaces allow more user groups to draw insights and make informed decisions; and
• Advanced analytics software enables better analysis, and analysis of relationships and future events.

Since modern techniques and technologies to accelerate or otherwise improve decisions or processes along the value chain are now widely available, it is important to carefully evaluate how advanced analytics can be used within your company in order to keep pace with the competition.

Advanced reporting that brings your financial data to a new level. Integrate your Google Analytics to better forecast and make wise major decisions. 

Mike McVay, Accountant * 850-725-5696 * Mike@MikeMcVay.com

1. MASSAGES
Yep, that’s right. Our CEO, John Pollock, confirmed that massages can indeed be tax write-offs as long as they are a doctor’s order. The next time someone says taxes stress them out, share this tax tidbit with them!
2. GAMBLING LOSSES
Whether you were dealt a bad hand, picked the wrong numbers, or bet on the wrong horse; the IRS allows you to write off your gambling losses. The one caveat — your losses can never exceed your winnings. So, if you won $500 dollars, the most you can write off is $500 in losses.
3. BABYSITTING OR DAYCARE EXPENSES
In order to claim the up to $3000 per child credit, you must be working, at a work-related function, or doing charity work when the babysitting and daycare expenses occur. Sorry, getting a babysitter to go to the movies on a Friday night doesn’t count. 
4. SUMMER BBQS (OR WINTER BONFIRES) AT YOUR HOME
These fun functions only qualify as business expenses if there is a bona fide business discussion before, during, or after the S’more smushin’.
5. YOUR BACKYARD POOL
You can deduct your backyard pool as an on-premise employee athletic facility. According to Code Section 132(j), if you have a home-based business and one or more members of your household qualify as employees, you may be entitled to this tax deductible.
6. INCOME FROM RENTING YOUR HOUSE
Believe it or not, you can rent your home to your business for up to 14 days of tax-free income. Sometimes called the Augusta rule, Section 280A(g) of the Internal Revenue Code, gives you permission to rent out your home for up to 14 days per year. Bonus–you don’t have to report the income! You can read more about this rule here.
7. FULLY DEPRECIATED BUSINESS PROPERTY
You can use a “gift-leaseback” to deduct the equivalent of fully depreciated business property all over again. It’s the gift that keeps on giving!
8. YOUR CHILD’S BRACES
According to The Nest, a popular finance blog, you can deduct your child’s braces as a business expense or even as a rental expense, as long as you itemize. In addition, there are a few other factors involved, including your income and your total medical expenses.
9. BEER
If you are a small business owner and you offer your customers a free drink to improve business, the courts have ruled you can write off a free cold one as a tax deduction. I’ll cheers to that!
10. QUITTING SMOKING
Programs that help you quit smoking can be tax write-offs, as long as they are prescribed by a doctor. In addition to improving your health, you’ll also be decreasing your tax liability. That’s what I call a “win-win”!

Please note that there are usage rules tied each of the tax write-offs listed above. Please contact a tax professional to help you determine which write-offs make the most sense for you and your business.

McVay adds a frantasic new tool to his client offerings. An important tool that allows growth, stability and proper decision making. 
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Key Performance Indicators (KPIs) can keep you on track and let you know whether your efforts are paying off. KPIs will also help you determine if you’re spending too much time on something that’s not worth it and prioritize your tasks accordingly.

Clients can add this new reporting to their monthly service. 

Mike McVay, Accountant 850-725-5696

When it comes to retirement planning, most people focus on how much money they need to save up before they quit their jobs for good. But that's only half the battle. You also need to know how much money you can withdraw from your savings each year in retirement without exhausting your funds.

Conventional wisdom says that retirees' biggest challenge will be reining in their spending to avoid running out of money during their golden years. However, 68% of retirees aren't withdrawing any more from their 401(k)s or traditional IRAs than they're required to per their required minimum distributions. (i.e., the minimum amount you are required to withdraw from your retirement accounts each year once you turn age 70 1/2), according to a study from Ameriprise Financial.

That's not necessarily a bad thing -- after all, frugality is a good trait for a retiree living on a fixed income. However, the study also revealed that only 21% of retirees feel confident about how much they can withdraw each year to ensure their money lasts the rest of their lives.
In other words, retirees aren't spending their money because they don't know how much they can spend safely.

Making your money last through retirement. The bad news is that there's no magic formula to determine exactly how much you should withdraw each year. The good news is that you don't have to blindly guess and hope for the best.

The 4% ruleOpens a New Window. is an oft-used guideline that's a great place to start. The rule states that if you withdraw 4% of your nest egg during the first year of retirement and then adjust that amount each following year for inflation, your savings should last roughly 30 years. For example, if you have $500,000 saved for retirement, you'd withdraw $20,000 the first year ($500,000 x 4%). If inflation came to 2% over that year, then you'd withdraw an extra 2% of the base $20,000 (or $400) during the second year -- that's $20,400 altogether.

Of course, no rule is foolproof, and the 4% rule is no exception. For one, it assumes your retirement will last 30 years or less. That may sound like a long time, but with life expectancies continuing to increase, there's a good chance your retirement will last longer than three decades. The Social Security Administration estimates that 1 in 4 Americans aged 65 today will live past age 90, while 1 in 10 will make it past 95. So if you retire at 62 and live past 92, you could run out of money even if you diligently follow the 4% rule.

That being said, it's better to have a plan -- even a rough one -- than to simply withdraw however much you think you need each year and hope you won't run out of money down the road.

Planning for retirement -- the right wayBefore you can figure out how much money to withdraw from your savings each year, you should determine how much you'll need to make ends meet. Then you can work backwards to make sure you've saved enough to meet that goal.

To start, create a thorough budgetOpens a New Window. detailing all your expenses to calculate how much you spend each year. Some of these expenses may change once you retire -- for instance, you may spend less on fuel when you no longer have to commute to work, but you'll likely face rising healthcare costsOpens a New Window. as you get older -- so try to account for that in order to paint an accurate picture of your income needs in retirement.
Group your expenses into different categories based on how important they are. For example, you may have one category for necessary expenses (your mortgage, groceries, car payment, etc.) and another for nice-to-have expenses (travel, hobbies, etc.). Then when you calculate your total yearly expenses, you'll have a more realistic view of how much you truly need to get by versus how much you'll need to live comfortably.

It's also a good idea to consider how much you'll be receiving in Social Security benefits, as that will give you a better idea of how much annual income your independent savings will need to provide. The average beneficiary receives around $1,300 per month (or $15,600 per year), which can go a long way in covering expenses.

Once you know how much money you'll need to cover your basic expenses, you can work backwards using the 4% rule to determine how much you should save by the time you retire. For example, say you need $40,000 per year to cover all your basic expenses or $50,000 per year to live a more comfortable retirement. If you're receiving $15,000 per year in Social Security benefits, that means you'll need to come up with $25,000 to $35,000 on your own each year. Working backwards, if $25,000 or $35,000 amounts to 4% of your total retirement fund, multiply those numbers by 25, and you'll have your retirement savings target.

In this instance, that amounts to between $625,000 and $875,000, depending on the lifestyle you're aiming for. So if you want to withdraw 4% of your nest egg the first year, and you know you'll need a total of $40,000 per year, then you'll need $625,000 in independent savings by the time you retire. If you want an extra $10,000 per year in fun money, you'll need to stash away another $250,000 by retirement. McVay Business Services offers Pensacola retirees and VETS a better way to handle their elder care. See more....

Retirement planning isn't an exact science, but that doesn't mean you can't plan strategically. Even a rough estimate of how much you're able to withdraw each year will help your money last longer, which will, in turn, make retirement far more enjoyable.

The $16,728 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,728 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after.
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Mike McVay, Elder Tax Accountant - 850-725-5696 - Mike@MikeMcVay.com 
www.PensacolaFLTax.com

We have helped countless business get a handle on these irritating and costly details when running their business. If you have any of these issues we can help clear them up and put your business on a path to success!

• Entity Advise & Formation - State tax or filing issues
• Back Tax Issues or Filings - I.R.S. or State 
• ​​I.R.S. Tax Payment Plans - Tax Agreements - Liens or Garnishments 
• QuickBooks Clean Up/Tune Up - QuickBooks a mess. Not for us! We know our QuickBooks!
• Bookkeeping - Stress free full service or hybrid bookkeeping at affordable prices
• Payroll Processing - We are one of the largest payroll processors in the area. Our great prices and attention to detail keep our clients happy. Let us so the payroll and you have ZERO headaches. 
• CFO Services - Have a degreed accountant manage, post and code your back-end accounting program  and reconciliation for as low as $250.00 per month.
• Past year tax filings and audit assistance - Not an issue with us. We can pull transcripts and get you caught up in no time. 
• Loan Financial Compilation - Having issues getting a loan. We know what the bankers are looking for. We can successfully provide you with financials they can understand and make you look great! 

Have you experienced or heard of accountants not calling you back with you have an issue. We have a reputation of super fast response. We know your time is valuable as well and your business regardless of its size gets our prompt and full attention. 

Make a change today and you will be glad to have Mike McVay, Accountant on your side. Read our reviews from some of the many clients that rave about McVay's services and prices. 

McVay Business Services 850-725-5696 Mike@MikeMcVay.com - www.PensacolaFLTax.com

Federal law requires most employers to withhold federal taxes from their employees' wages. Whether you're a small business owner who's just starting out or one who has been in business a while and is ready to hire an employee or two, here are five things you should know about withholding, reporting, and paying employment taxes.
1. Federal Income Tax. Small businesses first need to figure out how much tax to withhold. Small business employers can better understand the process by starting with an employee's Form W-4 and the withholding tables described in Publication 15, Employer's Tax Guide. Please call if you need help understanding withholding tables.
2. Social Security and Medicare Taxes. Most employers also withhold social security and Medicare taxes from employees' wages and deposit them along with the employers' matching share. In 2013, employers became responsible for withholding the Additional Medicare Tax on wages that exceed a threshold amount as well. There is no employer match for the Additional Medicare Tax, and certain types of wages and compensation are not subject to withholding.
3. Federal Unemployment (FUTA) Tax. Employers report and pay FUTA tax separately from other taxes. Employees do not pay this tax or have it withheld from their pay. Businesses pay FUTA taxes from their own funds.
4. Depositing Employment Taxes. Generally, employers pay employment taxes by making federal tax deposits through the Electronic Federal Tax Payment System (EFTPS). The amount of taxes withheld during a prior one-year period determines when to make the deposits. Publication 3151-A, The ABCs of FTDs: Resource Guide for Understanding Federal Tax Deposits and the IRS Tax Calendar for Businesses and Self-Employed are helpful tools.
Failure to make a timely deposit can mean being subject to a failure-to-deposit penalty of up to 15 percent. But the penalty can be waived if an employer has a history of filing required returns and making tax payments on time. Penalty relief is available, however. Please call the office for more information.
5. Reporting Employment Taxes. Generally, employers report wages and compensation paid to an employee by filing the required forms with the IRS. E-filing Forms 940, 941, 943, 944 and 945 is an easy, secure and accurate way to file employment tax forms. Employers filing quarterly tax returns with an estimated total of $1,000 or less for the calendar year may now request to file Form 944,Employer's ANNUAL Federal Tax Return once a year instead. At the end of the year, the employer must provide employees with Form W-2, Wage and Tax Statement, to report wages, tips, and other compensation. Small businesses file Forms W-2 and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration and if required, state or local tax departments.
Questions about payroll taxes?
If you have any questions about payroll taxes, please contact the office @ 850-725-5696

 Mike McVay's passion to help the aging population is unmatched. He has just announced the addition of many new services under the Elder Care Financial Services area. 
McVay Business Services now provides planning and support services for aging seniors who need assistance in maintaining control of their finances. Our team of professionals will work with you and/or your relative to ensure their financial management needs are being met.Our eldercare services include the following: More Information.....

• Specialized tax preparation for aging clients
• Managing financial accounts
• Bank reconciliations and assistance in executing financial transactions
• Bill payment (reviewing and paying household bills, budgeting and record keeping)
• Prepare and review financial statements
• Financial Assistance
• Funeral Planning
• Light duty task and companionship services
• Retirement Planning
• Strategic Tax Planning and Servicing
• Insurance Consulting 

We are adding more services to help the elderly. This is on track to be one of our most popular services because our fees are based on your income level and budget. 

Mike McVay, Accountant 
850-725-5696
Mike@MikeMcVay.com

As a small business owner, figuring out which form of business structure to use when you started was one of the most important decisions you had to make; however, it's always a good idea to periodically revisit that decision as your business grows. For example, as a sole proprietor, you must pay a self-employment tax rate of 15% in addition to your individual tax rate; however, if you were to revise your business structure to become a corporation and elect S-Corporation status you could take advantage of a lower tax rate.
What is an S-Corporation?An S-Corporation (or S-Corp) is a regular corporation whose owners elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax (and sometimes state) purposes. That is, an S-corporation is a corporation or a limited liability company that's made a Subchapter S election (so named after a chapter of the tax code). Rather than a business entity per se, it is a type of tax classification. Shareholders then report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates, which allows S-corporations to avoid double taxation on corporate income. S-corporations are, however, responsible for tax on certain built-in gains and passive income at the entity level.
To qualify for S-corporation status, the corporation must submit a Form 2553, Election by a Small Business Corporationto the IRS, signed by all the shareholders, and meet the following requirements:

• Be a domestic corporation
• Have only allowable shareholders. Shareholders may be individuals, certain trusts, and estates but may not be partnerships, corporations or non-resident alien shareholders.
• Have no more than 100 shareholders
• Have only one class of stock
• Not be an ineligible corporation (i.e. certain financial institutions, insurance companies, and domestic international sales corporations).

What are the Tax Advantages of an S-Corp?
Personal Income and Employment Tax Savings
S-corporation owners can choose to receive both a salary and dividend payments from the corporation (i.e., distributions from earnings and profits that pass through the corporation to you as an owner, not as an employee in compensation for your services). Dividends are taxed at a lower rate than self-employment income, which lowers taxable income. S-corp owners also save on Social Security and Medicare taxes because their salary is less than it would be if they were operating a sole proprietorship, for instance.
The split between salary and dividends must be "reasonable" in the eyes of the IRS, however, e.g., paying self-employment tax on 50% or less of profits or a salary that is in line with similar businesses. Furthermore, some S-corp owners may be able to take advantage of the 20% deductions for pass-through entities as well, thanks to tax reform.
Losses are Deductible
As a corporation, profits and losses are allocated between the owners based on the percentage of ownership or number of shares held. If the S-corporation loses money, these losses are deductible on the shareholder's individual tax return. For example, if you and another person are the owners and the corporation's losses amount to $20,000, each shareholder is able to take $10,000 as a deduction on their tax return.
No Corporate Income Tax
Although S-corps are corporations, there is no corporate income tax because business income is passed through to the owners instead of being taxed at the corporate rate, thereby avoiding the double taxation issue, which occurs when dividend income is taxed at both the corporate level and at the shareholder level.
Less Risk of Audit
In 2014, S-corps faced an audit risk of just 0.42% compared to Schedule C filers with gross receipts of $100,000 who faced an audit rate of 2.3%. While still low, individuals filing Schedule C (Profit or Loss from Business) are at higher risk of being audited due to IRS concerns about small business owners underreporting income or taking deductions they shouldn't be.
Help is just a phone call away.Whether you keep your existing structure or decide to change it to a different one, keep in mind that your decision should always be based on the specific needs and practices of the business. If you have any questions about electing S-Corporation status or are wondering whether it's time to choose a different business entity altogether, don't hesitate to call.

Mike McVay, Tax Accountant 850-725-5696 - Mike@MikeMcVay.com