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BNCW's Blog

  • February 14, 2013 7:50 AM | Administrator (Administrator)

    The tax filing season will shortly be upon us and the question on every business owners mind is will I have to pay more or less taxes this year?  The simple answer is a tax rate increase, the first one in 20 years was approved, but many of us here in the Wenatchee Valley will not but adversely impacted by the higher rate, but we will, and probably already have,  felt the impact of the expiration of the 2% FICA holiday.

    The payroll tax “increase” that everyone is buzzing about really isn’t an increase as much as an expiration of a 2% holiday. The official rate has long been 6.2% of your gross pay (up to $110,100 of income each year) for Social Security plus another 1.45% for Medicare.  Over the past two years, the government reduced the employees 6.2% Social Security deduction to 4.2%.  The 2% holiday on Social Security tax has simply ended.   In addition, with the start of the Patient Protection and Affordable Care Act (often referred to as Obama Care), individuals who make more than $200,000, the Medicare tax will increase to 2.35% (from 1.45%).  The impact of the double whammy, for those making in excess of $200,000 (or $250,000 for married couples filing) will definitely be noticed.

    There is much better news on the income tax front, unless you have a household income of $1 million or more, where 90% of the scheduled tax increases will impact you.  The new rules keep tax rates low on middle class, up to $400,000 married filing joint, with permanent extension of the lower tax brackets for individual tax payers (10%, 15%, 25%, 28% 33% and 35%).  Taxpayers that make above $400,000 will see tax rates increase up to 39.6% from 35% $450,000 for married filing jointly and $225,000 for married filing separate). Taxes on capital gains and qualified dividends will continue to be taxed at 15% for most taxpayers with taxable incomes below $400,000. Taxpayers who are subject to the 39.6% rate on regular income will be subject to a 20% rate.  Since this income will also be subject to the Medicare surtax (3.8%), the income will effectively be taxed at 23.8%.

    Obama Care means that there is a 3.8% Medicare Surtax on Investment Income such as Interest, Dividends, Cap Gains less Capital Losses and Rental Income less Rental Expenses calculated on investment income or modified AGI that exceeds $250,000 for married couples.  As anticipated, there are increased deductions and limitations for Section 179 expenses and personal exemption phase out (PEP) is coming back. 

    Overall, the new tax landscape remains largely unchanged for middle class Americans and much more complicated for higher earners despite the Alternative Minimum Tax rules being rewritten.  Below is a chart that encapsulates the overall impact of the changes.   Tax forms are not yet finalized due to the tardiness of decision making this year, and filings will not be accepted prior to January 30th for most individuals.  However, if you have residential energy credits, depreciation, amortization or general business credits you will not be able to file until February or March.

    If, you have any questions about your tax filings, please feel free to contact, Tricia McCullough, Owner of Augustedge PLLC - CPA, EA, CMA, Financial Planner at 509-494-8500.

  • January 04, 2013 9:42 AM | Administrator (Administrator)

    Businesses are looking to leave costly, restrictive California on Twitpic 

    Can Washington be that far behind? We don't think so...

  • December 18, 2012 9:14 AM | Administrator (Administrator)

    Small business became much more pessimistic in November with the major small business index tumbling 5.6 points, the steepest one-month decline in history! Consumers are slightly more optimistic with retail sales climbing 0.3% in November, offsetting the 0.3% decline in October. Elsewhere, inflation is in check at the headline, intermediate, and crude stages and industrial production may be slowly inching back to where it was in summer. Overall score: C.    
            

    Elliot F. Eisenberg, Ph.D.

    GraphsandLaughs, LLC

    elliot@graphsandlaughs.net

    Cell: 202.306.2731

    www.econ70.com
  • November 30, 2012 3:59 PM | Administrator (Administrator)

    The 2013 BNCW Home Show marks the 10th anniversary of this amazing event!  Vendors from all over come and take part in the best marketing opportunity money can buy!  Here's your opportunity to spend three days out in front of a targeted audience and meet thousands of potential customers--all while you network with other vendors!  This Home Show stands apart from other shows as it is targeted to serious buyers who are ready to Buy, Build or Remodel! 

     

    Come and join us and showcase your business!  Testimonials from other vendors illustrate that they gain new business, and even years later, still get business from Home Show attendees!  Don’t miss out on this great opportunity!  Call us today to reserve your booth at 293-5840 and get your company out in front of the competition!  Because let’s face it, if you aren’t out in front, your competition is! 

     

    For those that need assistance in laying out a booth, we have contacts that can help you out with creative ideas on staging and staffing your booth!  The 10th Annual BNCW Home Show...coming this February 8th – 10th, 2013 at the

    Town Toyota Center!

     

    Click here for more information!

  • June 01, 2012 10:54 AM | Administrator (Administrator)
    Recently, we posted a "score card" of how Washington State fares in small-business "friendliness" - as determined by an annual survey. No surprise that the results are less than encouraging. If you haven't read the report, please take a moment to view it here. We're interested to hear how you weigh-in on the 15 metrics used in the survey, based on your personal experience as a small-business owner in this state. Is this survey accurate, or do you believe that it's too critical? 

    Chime in!
  • March 08, 2012 10:58 AM | Anonymous
    Welcome to BNCW's Blog! As we move forward, it is my hope that our blog will serve as a tool to keep our members and guests engaged in the issues that are extremely important to small businesses within North Central Washington!
 

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