Tax Return Preparation Needs To Done Properly

Preparing tax returns is a tough job and just anybody cannot do the work. For tax return preparation work you need to have the assistance of a certified professional CPA. So be it the tax return preparation of an individual or a business it is important to get professional help for this. In United Sates the tax season witnesses a heavy rush of customers to the office of CPAs who work towards helping out in the tax return preparation calculations.

It is understood that one may find it difficult to hire the services of a CPA during this time due to the heavy workload, so the smart thing for you to do will be to hire the services beforehand. Surely you do not want to face any hassles at the last minute and would like to pay your taxes well in advance.

There are several firms that specialize in providing tax return preparation and other services related to filing of tax returns to customers. Managing all the accounts about the monetary transactions that have taken place during a year is very important to get the tax calculations done properly.

Payroll Taxation Requirements

One of the most complex requirements in the payroll process is that of taxation. Payroll tax is levied by each of the Australian states and territories, on each employer’s payroll. Therefore, the legislation is different for each of these locations.

There is a threshold point at which businesses must start to pay payroll tax. Many smaller companies do not need to pay it as their total amount of wages paid does not meet this base line.

Firstly, the legislation determines that ‘wages’ are taxable. Wages are generally taken to be ‘any wage, allowance, or commission’ paid to an employee. They do not have to be paid as money. Non-cash benefits are also liable for payroll tax, such as cars and entertainment. Also, meal allowances, prescribed contracts (payments under contract for labour), E.T.P.s and commissions paid to insurance canvassers, are some of the other types of remuneration that payroll tax must be paid in respect of.

Exemptions from payroll tax exist though, for wages paid by public hospitals, charitable organizations, religious organizations, and some local government bodies.

Payroll grouping provisions also exist, wherein employers are considered to be in a ‘group’ for this purpose. Each member of the group is required to pay a pro rata proportion of the total tax payable by the group. These four groups are:

- The business is a branch or agency of a parent business.

- Two or more businesses are under the control of the same person.

- An employer also uses the employees in another business.

- Corporations are classes as related companies.

If the wages paid by an employer exceed the specific amount prescribed by each state, the employer must register as an employer and so then these wages are liable for the payroll tax. This baseline amount of total wages to be paid varies from $43,000 per month in South Australia, to $125,000 per month in the ACT, above which the tax is liable.

The actual annual rate of tax also varies between the states. For example, the threshold payroll tax rate in Victoria is 4.95% at $550.000, 5.75% at $623,000 in NSW, rising to 6.85% in the ACT at $1,500,000. (2008/9 year).

Care needs to be taken when managing payroll tax requirements, as there are strong penalties if errors are made. Further, legislation and regulations change frequently. Due to these penalties, and the complexity of the payroll taxation system, it is beneficial for many businesses to outsource this administrative burden to a quality payroll service, as this service will provide these companies with an accurate and expedient means of completing its payroll needs, and in a cost-effective manner.

The 4 Best Ways to Spend Your Tax Refund

Americans receive some serious money from tax refunds. In fact, the average federal income tax refund is more than $3,000! And, more than 75% of federal tax returns result in a refund – meaning most people get a fairly sizeable check when tax season rolls around!

 

But, what should you do with your tax refund?

Some people use the money to pamper themselves with a tropical vacation, a new car, or a shopping spree. Other people use it to pay for everyday expenses like groceries, gas, and the electric bill.

But there are plenty of better ways to spend your tax refund. In fact, by doing one of these 4 things, you can make the most out of your tax refund check:

1. Pay off your debts.

If you can’t pay off all of your debts with your refund check, start with the debt that has the highest interest rate. For most people, this is credit card debt.

By paying off your high-interest debts now, you can save yourself a ton of money in interest later. After all, it’s not uncommon for credit cards to have interest rates as high as 20% or 30%!

2. Make an extra mortgage payment.

When it comes to your mortgage, additional payments are credited right to the principal – meaning you’ll save money on future interest. Plus, paying off more of your mortgage now means you’ll get more equity in your home as soon as the check clears.

3. Save it for when you need it.

You never know when your car is going to break down, when the kids are going to need braces, or when a pipe is going to burst inside the wall of your bathroom. Life has a funny way of throwing us some expensive curveballs!

If you have a savings account, put your tax refund money in there – instead of your regular checking account – so that it can gain some interest. If you don’t have a savings account, consider your tax refund the perfect excuse to go open one!

4. Take on some repairs and upgrades.

By spending a little bit of money to take care of your home or car now, you can prevent bigger expenses later. If, for example, you’ve been putting off that engine flush in your car, now is the perfect time to do it. Or, spend your tax refund on some new tires, so your car rides smoother and uses less gas.

Or, if you plan on moving soon, use your tax refund to upgrade your kitchen. After all, most prospective homebuyers say a modern kitchen is very important. Some new appliances, new countertops, or a new floor can make your kitchen look more modern – and can increase the value of your entire home!