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June
 2016

It All Add$ Up Bookkeeping and Tax Tips
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If growing your team is in your future, be sure to read our Time for Growth article for important considerations ranging from financing your growth to finding the right lending institution. Speaking of growth, we're thrilled to introduce two new employees, Brenda Rossman and Vicki Baran.

Working with contractors continues to increase in popularity. If you hire contractors to complete a portion of your work, our 1099 Tip is essential to avoiding penalties and fees. And last, to lighten your day, enjoy our little Smile of the Day story!

If you have any questions or would like to learn more or schedule a consultation, call us at 724-359-5022 or send us a note via our contact form. 
TIME FOR GROWTH
Time for Growth
Are you considering growing your team?

In business, you will find that there always will inevitably come a time as a business owner, you are faced with the decision to remain steady, shrink or grow. It usually comes about when you are ready to rip your hair out, from becoming increasingly busy and find it difficult to juggle the amount of business you are bringing in. At this point you will have to make the decision, whether to scale back or forge ahead growing your business. 

If at this point you choose the latter, you will soon find that it takes not only the will to move your business forward, but also a financial investment. You may even find that the investment is more cash than you have on hand, or it may force you to dip into your reserves more than your comfortable with, which leaves you asking, what next? A financial loan may be the solution to your problems. There are a few considerations however, before you contact your local bank or lending institution and ask for a loan.
QUICK TIPS ON 1099's
Sometimes clients use independent contractors as a stop gap prior to hiring a full time employee. They may also use these types of individuals to complete a project. IRS regulations require that 1099 forms be issued to certain companies and individuals. To ensure the accuracy in preparing these forms, the IRS requires that a business obtain and maintain form W-9 for all of vendors. The IRS penalty for not providing a Taxpayer Identification Number is $100. Furthermore, the IRS requires backup withholding at a flat rate of 28% for any vendors failing to provide a form W-9.

We recommend prior to doing business with a new vendor have them complete the required paperwork that will be needed to issue a 1099 in January for the upcoming tax season. As a business owner you have better leverage obtaining this information up front than after a project has been completed and you are relying of the vendor to give you the information after the fact. Lack of documentation will prevent you from claiming a business expense for the amount paid to the vendor.
MEET OUR NEW STAFF

Speaking of growing.... Paxton Bookkeeping and Tax Services is expanding. We are pleased to announce the addition of our new staff members.

Brenda Rossman
Brenda Rossman

Brenda Rossman, our Office Administrator wears a lot of hats at Paxton Bookkeeping and Tax Services.  She has a degree in Specialized Business from the Sawyer School of Business.  She brings years of progressive administrative and executive level skills within the energy and mortgage industry fields.  Brenda is excited by new challenges and is eager to put her exceptional organizational skills to good use. 

Vicki Baran
Vicki Baran

Vicki Baran, our Bookkeeper is a certified Online QuickBooks Pro Advisor. She has attended Community College of Beaver County and attained a Certificate in Accounting. With years of experience in in the accounting field, Vicki brings retail and manufacturing expertise to Paxton Bookkeeping and Tax Services. Vicki has experience in A/P, AR, Inventory Control and Project Management.

SMILE OF THE DAY
A man owned a small ranch in Texas. The Texas Wage & Hour Dept. claimed he was not paying proper wages to his help and sent an agent out to interview him.

"I need a list of your employees and how much you pay them," demanded the agent."

"Well," replied the rancher, "There's my ranch hand who's been with me for 3 years. I pay him $600 a week plus free room and board."

"The cook has been here for 18 months, and I pay her $500 per week plus free room and board."

"Then there's the half-wit who works about 18 hours every day and does about 90% of all the work around here. He makes about $10 per week, pays his own room and board and I buy him a bottle of bourbon every Saturday night."

"That's the guy I want to talk to, the half-wit," says the agent.

"That would be me," replied the rancher.

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