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We Can Help You Address the Issues that Keep You Up at Night

Older mature man worrying with hand to face.

Where will your business be in five years? Would strategic budget cuts in some areas improve your company’s health? Are there ways you can boost revenue? If you’re nearing retirement, is there a buyer or successor in the wings? These are the kinds of questions that keep many business owners up at night. Fortunately, as your CPA, we can probably help you sleep a little easier. Our firm is made up of highly qualified and educated professionals who work with clients like you all year long, serving as trusted business advisers. We act as coaches, guides and trainers for our business clients, helping them chart the best route to success. So be sure to turn to us with all your business questions or concerns.

Tax Season Is Here!

0109 - Tax Season is Here

As the New Year begins and resolutions are made, tax season begins right along with them. We understand the stress of tax season and do our best to minimize the worry for each of our clients. Our year-end tax planning process gives our clients peace of mind when entering the new year. As tax season rolls on, we offer our clients timely responses and quick turn around times. 


Contact us to see how we can help make your tax filing experience a stress-free one. 

805.473.1040 • info@RohrandAssociates.com

“Financial Moves You Should Make By New Year’s” WSJ Article

1203 Post - YE Tips WSJ ArticleClick the link below to access an article written by Lindsay Gellman of the Wall Street Journal on November 30, 2013. The article highlights some financial items to look into prior to the end of the year.

Each of these recommendations will impact each individual differently and are specific to each individual’s financial situation and tax picture. Call us at Rohr & Associates today to discuss the best plan for you.

WSJ Article: Financial Moves You Should Make By New Year’s

“How to Get Your 401(k) Ready for Retirement” WSJ Article

1008 Post - 401k Article WSJ

Check out the link below to access an article written by Michael Pollock of the Wall Street Journal on October 7, 2013. This article focuses on a six-step plan to address your 401(k) when you are within 10 years of retirement.

One of the highlights of this article include re-visiting your 401(k) allocation. Becoming more diversified and risk-adverse as you approach retirement is the conventional wisdom. You will not have the time horizon to sustain a market downturn.

WSJ Article: How to Get Your 401(k) Ready for Retirement

 

Retention Guide – How Long is Long Enough?

A question we often receive is “how long should I keep my tax returns?” Or “how long should I keep my 1099’s?” To help answer these questions and all other questions related to the time-frame required for keeping your records, we have included a link to our record retention guide in this posting below.

Federal law requires you to maintain copies of your tax returns and supporting documents for three years. This is called the “three-year law” and leads many people to believe they’re safe provided they retain their documents for this period of time.

However, if the IRS believes you have significantly underreported your income (by 25 percent or more), or believes there may be indication of fraud; it may go back six years in an audit. In order to be safe; please check out our guideline.

Quick Retention Guidelines

Tax Returns and worksheets – Keep Forever

Supporting Documents for Tax Returns – Keep for Six Years

Deeds, Minutes Books, Appraisals, Property Records – Keep Forever

Access the Rohr & Associates Record Retention Guide

Employee or Independent Contractor? How do we know and why does it matter?

Let’s start with a simple scenario to highlight the issue: An Attorney has his office painted throughout the year by a group of workers. They come in before office hours to make sure the day to day operations of the firm are not interrupted. The work consists of touch up and minor paint jobs throughout the office. Are they employees, where payroll taxes should be withheld on each check and a W2 issued at the end of the year, or Independent Contractors, where a 1099 should be issued when payments exceed $600 for the year? Before we give the answer, let’s briefly define what an Employee and an Independent Contractor is based on how the EDD (Employment Development Department) defines them.

Employee – 
  • Told when to show up and leave work
  • Paid by time or a piece rate
  • Provided with supplies, and tools to complete their work

Independent Contractor – 

  • Engaged in separately established business
  • Control when to show up and complete the work
  • Right to control the way the work is completed
  • Customarily perform jobs for more than one business
So what is the answer to the correct classification of the painters as employees or independent contractors in our scenario? According to the EDD, which had a case with similar circumstances to the ones above, the painters are employees. To come to their conclusion, the EDD uses specific criteria that receive different weights depending on the issue at hand. They decide on a case in whole by looking at all the factors together. Even though the painters provided their own supplies and tools, they were told when to show up and their work was not specific to one job alone, but to continual touch up work. Since the criteria leaned in favor of an employee classification the EDD ruled as such.
So what happens if the attorney had been classifying the painters as independent contractors? That attorney now owes back payroll taxes along with penalties and interest for the entire time of employment. This can lead to a large financial burden and can be avoided. The EDD has several worksheets and guides on their website to help taxpayers decide the correct classification. See the below links for a few helpful guides.
Incorrect classification of workers can have large consequences for the business owner. A little bit of time spent on analyzing your specific circumstances can save you a lot of time and financial pain in the future.