Charity, worker classification, and other tax stuff

* Charity
* Employees vs independent contractors
* Automation and tax collection

FEELING CHARITABLE?
Corporate charitable giving limit has been increased this year
(25% of taxable income).

Individuals
For those of you who itemize, the tax laws now allow an “increased individual limit” up to 100% of your AGI. This is cash contributions made during the calendar-year 2021.
(Contributions made to qualifying charitable organizations.)

Another change for individuals:
Even if you don’t itemize, you can still give and claim a charitable deduction

EMPLOYEES OR INDEPENDENT CONTRACTORS?
IRS reminds business owners (again!) how important is to correctly classify the people they work with.

Missclassifying employees as independent contractors can be costly.
You and/or your company will be held liable for employment taxes, including Social Security, Medicare, and other taxes.

A good starting point (to determine the correct classification):
1. WHAT service will be done, and
2. HOW the work will be done.

If you, the business owner, can control/direct both (what and how) then that worker is generally an employee.

AUTOMATION AND TAX COLLECTION
It happened again!!
Don’t panic if you received a collection letter from the IRS
You are not alone
Almost 90,000 taxpayers (who filed their taxes timely) received these erroneous collection notices

If you received one don’t stress
There’s no action needed on your part

The lesson in this:
It appears that automation and tax collection still haven’t learned to work well together 🙂

Mariana Fieraru

Mariana Fieraru, an Eastern European transplant, fell in love with her new home shortly after landing in New York. She "discovered" pizza! Years later she still loves pizza. And so do her two feathered-kids, Sunny and Flipper

Mariana worked on both, the east and the west coast.
Big or small, each project she worked on helped define the importance of gaining and sustaining a competitive edge in an increasingly complex business environment.

Business know-how, love of teaching and writing – all combined in 2006 to form OBI.
Its mission: to make learning fun! And easy.

Through its training, consulting, and publications OBI builds bridges of knowledge to take you from where you are to
where you want to go. Using a mix of serious, informal, analytical, and optimistic approach, OBI truly makes learning fun.

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