Betsy Peterson CPA

5 Days until Halloween What are you dressing up as this year?

Take time each month to reconcile bank statements to the transactions entered in your checkbook register. This simple task becomes much more burdensome when left for long periods of time.

What happens if you miss the October 15 tax extension deadline? The tax recess is over! How much will it cost me to miss the deadline?... The late filing fees are steep: Typically 5% of the unpaid taxes due, up to 25%, and calculated at the beginning of each late month. (So if you file 32 days late, you’ll pay two months’ worth of penalties.) What if I file on time but do not pay? Typically 0.5% of unpaid taxes per month, but if you set up a payment plan with the IRS, it is 0.25% per month. File on time, and pay when you can. Oh well if I can’t make the deadline I guess I will just wait and file later.much later. Don’t do that. If you owe taxes and you file more than 60 days late, you will not only be assessed penalties on the unpaid tax you will could also get hit with a $435 fine. What! My taxes were due on July 15! Yep, the extension extended your time to file, it did not extend your time to pay. If you owe taxes you will likely have to pay late fees and some interest. But, file soon and avoid additional penalties. States assess their own penalties and fees. The penalties and fees discussed are typical and may not necessarily apply to your particular situation. Talk to a tax professional to get professional advice specific to your situation. Betsy Peterson CPA will remain open late on Thursday October 15th; please call our office to discuss your personal tax situation. If we are busy with another client, leave your name and number and we will call you back. It is our goal to help everyone get their taxes filed by the tax deadline and for those that are unable to file today, to help you to gather the information necessary to get your returns filed as soon as possible. Call us at, 530-329-8617

Last Day to file your taxes if you had filed for an extension. If you haven’t filed yet, Betsy Peterson CPA will remain open late on Thursday October 15th; please call our office to discuss your personal tax situation. If we are busy with another client, leave your name and number and we will call you back. It is our goal to help everyone get their taxes filed by the tax deadline and for those that are unable to file today, to help you to gather the information necessary to get your returns filed as soon as possible. Call us at, 530-329-8617

5 days left! Need help filing your taxes? Give Betsy Peterson CPA a call 530-329-8617

Payroll Tax Deferrals Employer and employee share of social security taxes amounts to a significant portion of the employment taxes paid to the IRS. It is important to remember that these taxes are being deferred and not eliminated or forgiven. While it is entirely possible that these taxes could be forgiven at a later date, it is my opinion that forgiveness is highly unlikely. Given the behaviors of Congress and the limited advice being offered by the IRS and The Depart...ment of Treasury. It seems that no one wants to even discuss the possibility of forgiveness. The President has also been unusually quiet about the topic. Most employers pay their payroll taxes monthly which means many are trying to decide how they should pay their September payroll taxes which are now due. My advice is to pay your taxes as you always have and do not defer your tax obligation. Deferring taxes today will just result in a much higher tax bill in the future when those taxes become due at the same time as current period tax obligations. Also, choosing to not withhold taxes from your employee puts your employee in the uncomfortable situation of having to pay those taxes when they become due. One of the hardest struggles of the small business owner is managing cash flow. Yes, you could save money today by paying taxes tomorrow, but doing so will make for a very uncomfortable tomorrow. It is my opinion that only employers that have a concrete reason to believe that their cash flow will increase dramatically after the first of the year should take advantage of the deferment that is now being offered. It is much better to continue to operate and pay your taxes as you normally would and not cause an unnecessary burden for yourself after the first of the year. Another consideration is the tax consequence of paying 2020 taxes in 2021. If you are going to defer, be certain that you understand the implication for you and your employees and that you seek professional help when filing your year end payroll reports and 2020 tax return. See more

Your bookkeeper and/or accountant is only as good as the records you keep. Record keeping is so important to the success of a business, so be sure to keep your records in order

All financial functions begin and end with accurate bookkeeping. Accurate recording and classifying of transactions are prerequisites for minimizing tax liabilities and maximizing profits. Bookkeepers record and classify a business firm’s accounting transactions. A Certified Public Accountant (CPA) is an expert in the techniques involving the recordation of those transactions. Where the bookkeeper records and classifies the financial transactions of the company, a CPA takes the next steps and analyzes, reviews, reports, and interprets financial information for the company. Businesses depend on these analyses to track their business activities, assets, liabilities, and equity. Betsy Peterson CPA offers bookkeeping services for small business. Give us a call, 530-329-8617

Payroll service involves collecting wage and hour data from a business and using that data to calculate gross wages, subtract withholdings and deductions, print checks, deposit funds into various personal, state, and federal accounts, and prepare employment tax filings. The Internet has made payroll services even more convenient. However, payroll is not easy; even with sophisticated payroll software many small business owners find payroll challenging. Especially in Californi...a. California has many unique payroll circumstances: Reporting new employees (DE34); Wage garnishments for taxes (FTB) and child support (SDU); Mandatory sick leave accruals and payout; State disability insurance (SDI); Employment training tax (ETT) and other forms of unemployment insurance; Prevailing wage and certified payroll reports; and Report of independent contractors (DE542). Thinking about hiring out your payroll task? Give Betsy Peterson CPA a call, 530-329-8617

Happy Birthday to my assistant, Satinder! You are incredible in all of your roles: assistant, mommy, wife, friend, etc. We are very lucky to have you Have a great birthday

We are curious to know if your small business is taking part in the Payroll Tax Deferral? Are there any questions you would like answered on this topic?

Sign here... Our office cats, Daisy and Dexter, take their jobs very seriously.