Tag Archives: NH Taxes

What @CPAsteve says about New Hampshire business tax returns (Video)

CPAsteve explains how the Business Profit Tax, Business Enterprise Tax, and Interest/Dividends Tax all work in New Hampshire and whether your small business needs to be concerned about it.

 

If you found this article useful, please do not keep this a secret. Share it with a friend.

 

Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve’s exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.

Using a Payroll Service? Read this..

Many employers outsource their payroll and related tax duties to third-party payers such as payroll service providers (such as Appletree).

 

Reputable third-party payers can help employers streamline their business operations by collecting and timely depositing payroll taxes on the employer’s behalf and filing required payroll tax returns with state and federal authorities.

 

Here are some things you should know:

 

1) Are payroll taxes impounded by your payroll service, meaning are the tax monies pulled from your bank account and put into the payroll service’s bank account until due?

 

2) If you get a letter from the IRS about payroll taxes you believe you paid, you should contact the IRS YOURSELF; since this could indicate a much bigger problem.

 

3) Become familiar with the tax due dates that apply to employers of your size, try to keep track of these dates.

 

The key issue here is that you, the employer, are ultimately responsible for the payments even if the third party agent misappropriates the funds.

 

Are you certain about how your payroll taxes are being handled?

 

If you found this article useful, please do not keep this a secret. Share it with a friend.

 

Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve’s exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.

How much tax risk can you take? (Video)

CPAsteve discusses the value of asking about tax risk in the Business Financial Confidence process, and how business owners and advisors can benefit from simply knowing the answers. Use our Business Financial Confidence Map to help you find your way.

 

If you found this article useful, please do not keep this a secret. Share it with a friend.

 

Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve’s exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.

When your tax returns need to tell a story

When I first meet with a prospective client I love to see what ‘story’ the tax returns are trying to tell.

 

Typically, I’ll ask you what you understand your tax return to be, like whether you’re a corporation, a partnership, an LLC, or whatever…

 

I’ll even start asking you some of the hard questions like WHY you are what you are.

 

From here, I need to see the tax returns, all of them, Business and Personal, State and Federal  so I can see if your story plays out.

 

For instance, if you tell me that you’re an employee of your corporation, I’m going to ask questions when your corporate tax return shows zero compensation to the owner and your balance sheet says that you owe your corporation $500,000!

 

Or, I see , in addition to your corporation tax return, that you also have your own business  on your personal return, and you’re taking deductions there.

 

Or, you’re complaining about all the taxes that you pay for your S Corporation restaurant, and I see all the profit that you have, and it’s because your tax return very clearly says that you have $1,000,000 as CASH in your bank account, and you tell me that there can’t be any more than $10,000 in your bank account!

 

The ‘story’ has to play. Maybe that’s where my strength is, since I’m going to look at the big picture. Are we telling the State of New Hampshire (or neighboring states) a story consistent with what we’re telling the IRS, taking a reasonable compensation at the same time. In the end , it’s all got to be consistent.

 

When I’m sitting across from the auditor, I need to be able to tell them this ‘story’, so it’s important that whatever the ‘story’ is, it needs to be credible. For instance, if your tax return says that you owe your company $200,000, you’ve got a loan document to support this. If I walk in the door, and you’re the owner, and introduce me to the ‘president’, well that president better be an employee, and not a ‘sub-contractor’…

 

Do you know your story? Do you understand your tax returns well enough to know whether they tell the same story? Is your story credible?

 

If you want to learn more about this, check out Appletree Business Services’ Business Financial Confidence Map.

 

If you found this article useful, please do not keep this a secret. Share it with a friend.

 

Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve’s exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.

No barbequeing with accountant

“I don’t want to barbeque with my accountant”“

 

The other day I picked up a new new tax client. He’s an insurance agent with plenty of accountants that he already knew.

 

He barely knew me, but I had one big advantage that none of the other people he knew had…He didn’t know me!

 

He wants an accountant that can talk to him totally objectively, and not have to worry about not being invited to next week’s barbeque!

 

I was happy to oblige!!

 

If you want to connect with us at Appletree Business Services, take a look at our Business Financial Confidence Map.

 

If you found this article useful, please do not keep this a secret. Share it with a friend.

 

Copyright 2014 by Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, a PASBA member accountant, located in Londonderry, New Hampshire, with more than twenty- five years experience on Federal and New Hampshire issues affecting small business, and specializes in keeping his clients OnTrack with bookkeeping, tax, and payroll services for a fixed monthly fee. Learn more about Steve’s exclusive SIX Step system developed for small businesses at www.appletreebusiness.com/map.

What? New Hampshire has business taxes?

Most small businesses are required to file the New Hampshire Business Profits tax and Business Enterprise tax. Are you confident you know what these taxes are and how much you should plan to owe on them as a small business owner?

 

NEW HAMPSHIRE BUSINESS PROFITS TAX

 

If your business has gross receipts over $50,000, then you are required to file a Business Profits Tax Return, a tax of 8.5% of the ‘net income’ apportioned to New Hampshire. . From this , you can then take a deduction for reasonable compensation for personal services. A typical small business owner who’s typically doing the work in his small business will have no problem often justifying that 100% of his or her Schedule C income is reasonable compensation. But there are all sorts of traps here, so be certain you’re doing this right, particularly once we introduce the BET tax!

 

NEW HAMPSHIRE BUSINESS ENTERPRISE TAX

 

This is a tax of .75% on your Enterprise Tax base of all wages (including Reasonable Compensation above), interest (including any Mortgage interest from a Home Office), and any dividends paid. This tax will also reduce dollar for dollar any Business Profits Tax you would owe. So, essentially the Business Enterprise Tax is a minimum tax to make sure that all small business owners pay something, particularly since so many avoid the clutches of the Business Profits Tax.

 

What I just presented is a simplified explanation of these taxes. Quarterly estimates are required to be made as well.

 

Do you know if  your small business is affected by the New Hampshire Business taxes? Because we have no income tax IN New Hampshire, many small business owners  often don’t file these tax returns, until several years later when the state comes knocking, and they will.

 

Also, planning can be extremely difficult with these two taxes, particularly where certain techniques often used in other states will backfire in New Hampshire, partly because New Hampshire does not recognize flow through entities such as S Corporations.

 

We run into clients all the time that haven’t prepared these taxes or simply prepared them incorrectly, often we end up saving them a substantial amount in overpaid taxes once they come to us. This is what Business Financial Confidence is all about. Let our accountants help you get that confidence with our Business Financial Confidence Map.