2018 Year End Memo to Clients

YEAR END MEMO – 2018

TO:         All Clients

DATE: January 2019

*****************

Accounting

FICA Tax changes for 2019:

FICA Tax includes both Social Security coverage and Medicare coverage, and are both a deduction
from employee wages and matched by the employer.

Maximum Wages Subject to
Social Security Tax $ 132,900.00
Maximum Social Security Tax – Employers $8,239.80
Maximum Social Security Tax – Employees $8,239.80

Maximum Wages Subject to  Medicare Tax                        Unlimited

Social Security Tax Rate:
Employees                                                    6.20%
Employers                                                    6.20%

Medicare Tax Rate:
Employees  1.45% (Employees earning over $200,000 are subject to additional 0.09 Medicare Tax)
Employers 1.45%

NYS Unemployment wage base $11,400.00

The  Federal  &  State agencies have been aggressively looking for ways to assess taxes  & penalties.

Forms  1099  are still an area for target.  All payments of  $600.  per year to non-corporate entities for services will need a  signed and completed  Form  W-9  on file so we can complete a  Form  1099  at yearend. For all sales that are exempt from sales tax,  you must have a  signed resale certificate or exemption certificate on file from the customer.

If you need any forms or have any questions,  please do not hesitate to contact our office.

Please be advised that it is a  misdemeanor offense to be collecting  Sales  Tax without having, your  Certificate of  Authority on display at your place of business and,  if you have employees,  you must also have your  Workers’ Compensation and  Disability  Insurance  Certificates displayed.

We are an authorized Quickbooks-Pro Advisor and,  as such,  can get you discounts on  Quick-books,  Quickbooks upgrades,  and  Quickbooks supplies directly from  Quickbooks.   Our contact is Keith  Van  Order and his direct number is  214-387-2840.   We were told our clients would receive a  30%  discount when they mention our name.

We now have a  Facebook page under  ” Michael J. Berger and Co. CPA’s, LLP “