August 3, 2011
Due to high levels of unemployment over the last several years, the State of Alabama has borrowed money for the Unemployment Compensation Trust Fund in order to pay unemployment compensation benefits. From 2007 through 2010, more was paid in unemployment benefits than was collected in unemployment taxes. As a result, the Unemployment Compensation Trust Fund was depleted. The money to pay benefits in excess of collections was borrowed from the US Treasury.
According to Section 25-4-55 of the Code of Alabama, the interest expense must be assessed to employers. Therefore, each employer will be assessed 0.07% (7 hundredths of 1%) of their taxable wages for the calendar year ended December 31, 2010.
Notices from the Alabama Department of Industrial Relations went out August 10, 2011. Taxpayers will have until 9/9/2011 to pay the assessment. Electronic payment is preferred, but not required.
Circular 230 Notice: If this communication contains tax advice, this advice was not intended to be used, and cannot be relied upon by anyone, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
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For many business owners, September tends to bring a bit of a slowdown. The chaos of getting kids prepared for going back to school has passed, and a focus on saving money tends to kick in as people prepare for the coming holiday spend. Combined, this can often translate into a lull for business owners.
This is a friendly reminder that the Q3 tax estimate payment deadline is coming up fast. Be sure to make your payment by September 15, 2018 to avoid penalties. Currently, penalties for late or no payment average about 4 percent. And wouldn’t you rather keep that money in your pocket?
According to new rules from the Tax Cuts & Jobs Act, meals and entertainment tax-deductible expenses for businesses have undergone considerable reform. Because the explanations of new deduction guidelines can be confusing, we’ve created this brief outline for you. A visit with your accounting professional to ensure your Chart of Accounts is correct may also be beneficial.