Category Archives: Tax Corner

Tax Corner

Financial Management for Employees

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financial-managementHere are some tips for managing finances (financial management)

1. When receiving a salary, try to pay first routine bill.

Yes, every family must have a permanent bill monthly expenses. What are included in this permanent bill? Phone account, Tax, PAM, electricity, school fees, mortgage car / house, other debt repayments, the cost of the workshop, and shopping routine weekly / monthly is fixed post. So pay this first before you spend money you pay for that month (make your financial management).

2. Make allocation for emergency cost

For you who works as an employee, usually the company’s cover arises when health care costs. But there are times when the ceiling is provided by the company limited so get out of your own pocket. These funds also are you prepared if there is a wedding invitation, circumcision, co-workers sick, and others. You should be able to ask an accountant consulting services such as public accountants / financial accountants.

3. Do not be tempted to the lure of credit cards.

In a company, even had to provide training to its employees who tangled by credit card debt. Training (finances by using financial consulting services) is done to them more prudent in spending for consumer goods that are usually offered through credit card services. Credit cards are a means easy for you to owe, so if you feel you can not control it, immediately close your credit card. After all, you will not die without a credit card.

4. Frugality is the keyword

Yes, because you have a fixed cycle with income just as usual, the frugality is the key word. Frugality does not mean cheap. Frugality is spending your money for what you need, not what you want. Unless you are an employee who was earning far above average, as most people work. So-so sometimes you treat yourself to buy something you want. We recommend that you use the services of a public accountant or a financial accountant to manage your finances.

Tips for Handling Tax Debt

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taxdebtTax debt at any level is a frightening experience, especially when it involves an audit by the Internal Revenue Service. Millions of people are delinquent on taxes for one reason or another but instead of ignoring the problem, hoping it will just go away, the most important thing a person can do is take action, appropriately and quickly. The truth is that when it comes to tax debt, individuals have a variety of solutions.

One option for handling tax debt relief would be for the individual to work with a qualified credit or debt counseling company. In this case, representatives would look at the amount of debt, as well as the person’s income to determine a reasonable repayment plan. Often, these professionals work as a liaison between the person with the irs tax debt and the government. With this, they can usually establish a repayment schedule for the entire debt or even work out a settlement plan.

Even the IRS has programs whereby a settlement could be reached. For instance, if a person had tax debt of $2,000, a settlement up to 50% would be offered, meaning the individual would pay $1,000 and the debt would be considered paid in full. The downfall to this type of resolution is that the tax debt settlement is reported on the person’s credit report, along with the debt itself, which lowers the FICO score.

For tax debt to be paid in its entirety, the only solution would be a debt consolidation loan. Loans such as this involve the individual taking out a loan using equity in the home. These loans are relatively easy to secure since there is solid collateral and with the money, the tax debt would be paid. Of course, the person would then have the debt consolidation to repay but with these loans offering low interest rates and removing risk of legal problems of the tax issue, it makes a viable option.

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No Income Tax In Some States

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income-taxWhen you are considering relocating to a new state, taxes should be something you consider. Specifically, there are a number of states with no income tax.

States With No Income Tax

As you well know, paying taxes is a grind. Paying federal taxes is the biggest burden, but state income tax can quickly add up as well. There are, however, some states with no income tax. Depending on your earnings, this can save you hundreds or thousands of dollars a year when tax time rolls around.

There are seven glorious states with no income tax. In no particular order, they are: Continue reading

Managed Service Company

In the UK, a form of company organisation has evolved called a Managed Service Company (MSC). Mostly, born from the IR35 legisaltion in 1999 which came into force in 2000, this form of corporate structure positions workers and contractors normally into a group of between 5 and 8 people as shareholders in a corporation owned and run by the service supplier. Occasionally the workers will be appointed as Directors but always shareholders. As shareholders they can then receive minimum salary payments and the balance of income as dividends. Usually the service supplier would perform company secretatial duties and offer basic tax revenue advice.

These forms became popular where freelance contractors are used as a way of gaining high net returns (circa 85%+) compayed to PAYE (Pay As You Earn) with little corporate responsibilities. In return the providers charge a fee for having the service. To work inside this form workers must commonly pass IR35 Tax tests to ensure they’re able to accept dividend payments.

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