Each responsible employer must prepare and file without delay one specific form with the IRS, which is usually pointed at the end of the year, Form 1099. Tax form 1099 is what the IRS often refers to as the «Information Returns» form. Suc... Read more
The current ratio is a unique measure of the company's solvency, the ability to repay the current obligations. Lenders widely use this ratio to assess the organization's current financial position and the risk of issuing short-term loans. The ratio i... Read more
The self-employment tax is a special tax typically paid by small business owners to the federal government. It is levied to fund Medicare and Social Security. A self-employed individual is a person who runs a business for himself and takes responsibi... Read more
When a taxpayer's income isn't subject to withholding taxes, they must make estimated tax payments to the Internal Revenue Service (IRS) each quarter. If taxpayers earn income through wages, rent, interest, or dividends, and they don't have an emplo... Read more
Businesses have to calculate how much money must be withheld from employee paychecks to send to the IRS to cover tax payments. It's an important task as employers have to be careful and properly calculate everything to ensure that employees are taxed... Read more
Every employer who buys an employers' compensation insurance policy has to calculate compensation per employee. The calculation depends on several factors such as the payroll, classification codes, an experience modification factor, whether the emplo... Read more
Business tax preparation can be overwhelming. There are a lot of documents to collect and calculations to do to fill out and file taxes. Business or corporation owners can ask for business tax preparation help from professional accountants. Whether... Read more
An invoice is a document produced by a seller to hand to a buyer. Buyer must follow the information from the invoice to pay for services or goods from the description. Standard invoices include the price of services or products, names of the seller... Read more
Both individuals and businesses are required to pay taxes on their earnings. The amount of taxes each is required to pay is calculated based on the income they receive. In most cases, a tax rate schedule is used to calculate the amount of tax due fro... Read more
Closing entries are something a bookkeeper typically does once the month is over and every time the accounting period comes to an end. It is a mandatory procedure in accounting without which a bookkeeper cannot start recording entries for the next pe... Read more
