Business News

By January 2, 2013 February 3rd, 2014 2013, Tax Tips

The standard mileage rate for business use of a vehicle will increase to 56.5 cents per mile as of January 2, 2013.

The Social Security Wage base will increase to $113,700 for 2013.

The Colorado State Unemployment Wage Base will increase to $11,300 for 2013.

S-CORPORATION HEALTH INSURANCE:

This amount must be reported on W-2 Forms for anyone who is more than a 2% shareholder.

ENTERPRISE ZONE:

Don’t forget that you must now pre-qualify if you are eligible for Enterprise Zone credits. This pre-qualification form should be filed in January, 2013 to qualify for 2013 credit.

STATE WITHHOLDING BOOKLETS NO LONGER MAILED:

The Colorado Department of Revenue is working to find state budget savings wherever possible. Due to the increase in electronic filing, it is becoming less cost-effective to create and mail coupon booklets. Wage withholding tax has a very simple tax form and many employers are already filing and paying their tax by Electronic Funds Transfer (EFT) and do not need coupon booklets.

For this reason, 2013 wage withholding coupon booklets will not be mailed to any withholding tax account holder. These booklets would normally be sent in January and February. Also, the Department will not issue coupon booklets if they are requested.

Withholding account holders are encouraged to sign up for account access to file and pay through Revenue Online at www.Colorado.gov/RevenueOnline. Revenue Online is a one-stop, secure, streamlined website where you can file returns (including “zero returns”) register for EFT; make payments online by EFT, e-check or credit card; and monitor your account activity. Visit www.Colorado.gov/RevenueOnline and choose “Business” to get started.

Each new wage withholding tax license sent to businesses will contain a Letter ID number that can be used to sign up for Revenue Online Login ID and Password access to the tax account. Click the “View Tutorial” link under “Login” for step-by-step instructions on how to sign up for Revenue Online.

EMPLOYERS RESPONSIBLE FOR ADDITIONAL WITHHOLDING MEDICAL SURCHARGE:

Employers will be responsible for withholding the additional 0.9% Medicare surcharge for single employees with W-2 earning over $200,000 and married employees over $250,000. This additional withholding will begin when employers exceed those amounts.

Join our Mailing List to receive more tax planning tips by email.

Accounting & Tax Solutions

Author Accounting & Tax Solutions

More posts by Accounting & Tax Solutions