Thursday, May 31, 2012

FINAL EMPLOYEE PAYCHECK


Q: How quickly must an employee’s final paycheck be issued if they are terminated or quit? I had an employee that quit and said that I had to give him a paycheck that day.

A: Nebraska law requires that final wages be paid on the next regular pay day or within two weeks of the termination, whichever is sooner. This law applies regardless of whether an employee is terminated or voluntarily quits.



Note, this is Nebraska law. Other state laws may vary.

HOUSE PLANS VOTE ON TAX CUT EXTENSION


House Republicans said they plan to schedule a vote on extending the Bush tax cuts before August.


In a legislative agenda released Friday by House Majority Leader Eric Cantor, R-Va., he wrote, “Before we leave for August, I expect to schedule a vote on legislation preventing the largest tax increase in history,”according to Reuters.


House Minority Leader Nancy Pelosi, D-Calif., said last Wednesday in a letter to House Speaker John Boehner, R-Ohio, that she wants to schedule a vote on extending the tax cuts for those who earn less than $1 million and use the extra tax revenue from those earning over $1 million to pay down the deficit


“Without further delay, the Majority Leadership should schedule a vote on extension of the middle income tax cuts, as early as next week, to increase certainty for millions of American taxpayers and for the economy,” she wrote. “We must ask the very wealthiest Americans to pay their fair share. Democrats believe that tax cuts for those earning over a million dollars a year should expire and that we should use the resulting revenues to pay down the deficit… It is unacceptable to hold tax cuts for the middle class hostage to extending multi-billion dollar tax breaks for millionaires, Big Oil, special interests, and corporations that ship jobs overseas.”


The Obama administration position is that the Bush-era tax rates should only be extended for those who earn $250,000 a year or less.
Congress is not expected to settle the matter until after the November election, during a lame-duck session. But there have increasingly been calls for them to settle the fate of the expiring tax cuts in time to provide more certainty for next year. IRS Commissioner Doug Shulman and other IRS officials have urged Congress to decide on the tax rates early enough to avoid a delay in the forms and schedules for next tax season.

2009 QUICKBOOKS DISCONTINUATION


We just received the following note from QuickBooks. If you are using QuickBooks 2009 take note, they are discontinuing the payroll service take notice.
NOTIFICATION FROM QUICKBOOKS:

 We know that your clients rely on QuickBooks and we want to be sure that we keep you informed of any changes that will affect your clients. Since early March, we have informed our payroll customers that as of May 31, 2012, payroll service for QuickBooks 2009 would be discontinued. In order to provide customers with additional time to upgrade their QuickBooks software, we have extended the date of the payroll service discontinuation to June 30, 2012.

After that date, QuickBooks 2009 will no longer automatically calculate correct payroll taxes or provide payroll tax forms. Payroll subscriptions for customers with QuickBooks 2009 will be inactivated on July 1, 2012.

We are encouraging customers to upgrade their QuickBooks software as soon as possible to minimize disruption to their businesses.

Thursday, May 24, 2012

SENATE AG CHAIR SEEKS FARM BILL DEAL WITH SOUTH


(Politico) -- Politico.com reports that "with her farm bill now slated for the Senate floor in June, Agriculture Committee Chairwoman Debbie Stabenow is reaching out to Southern lawmakers, trying to heal the breach that split her panel last month and put her at odds with allies in the House."  According to the story, "Southern rice and peanut growers are the two primary outliers, and the backroom talks are focused on tailoring some modest countercyclical program as a safety net for these commodities."

To read more on the article: CLICK HERE

USDA: FARM INCOME WILL TOP $91B THIS YEAR


(Bloomberg/DailyHerald.com) -- Bloomberg reports that "net farm income for domestic growers will reach $91.7 billion this year, second only to last year's $98.1 billion."  That is according to the U.S. Department of Agriculture.  Farm income last year was $30 billion higher than the 10-year average -- and that jump in income is primarily responsible for the large increase in farmland values, the story notes.

To read more of the article: CLICK HERE

GAS PRICES RISING


Q. With gas prices rising, will IRS raise the standard mileage rate at midyear?


A. Actually gas prices have decreased lately so I doubt if we will see any changes. If we do see increases in the future it might be a possibility. Most analysts see prices staying low especially with an election coming up.

When the price of gasoline spiked in the first half of 2008 and 2011, the Service boosted the standard mileage rate by 8 cents per mile and 4.5 cents per mile, respectively, effective for the final six months of those years.

We will keep you posted.

Wednesday, May 23, 2012

CORN ACRE PLANTINGS RELEASED


The USDA released the intended corn acre plantings.  Total intended corn acre plantings projected to be  95.9 million acres for 2012.  This is up almost 4 million acres over 2011 and up over 7 million acres from 2010. 

It will be interesting on how this impacts pricing..

Sunday, May 20, 2012

BEWARE OF THE $494 BILLION TAX HIKE COMING SOON


The Heritage Foundation is a conservative think tank but I found their recent column quite true.  I have been trying to warn people that if Congress and the President don’t act taxes are going to increase dramatically.  While the President and Congress appear content to put off ’til the 11th hour what they can and should do today, those who will have to pay the higher tax burden are waiting to see what the future holds. It appears that many businesses are waiting to see what will happen and this may be slowing job creation.

In their analysis, they write "Brace yourself.  In (less than 270) days, you and your fellow Americans will be hit with a tax hike the likes of which this country has never seen," if Congress does nothing by year's end.  "The Washington Post aptly called the unprecedented $494 billion tax hike 'Taxmageddon.'"  According to the analysis, "almost 34% of the tax increase" is from the expiration of the 2001 and 2003 Bush tax cuts, while "another 25% of Taxmageddon comes from the expiration of the once-temporary payroll tax cut."  The expiration of the patch on the Alternative Minimum Tax accounts for 24% of the total potential 2013 tax increase.  The rest of the tax increase "comes in part from new taxes under Obamacare, the expiration of tax cuts in the 2009 stimulus, the expiration of a group of policies known as 'tax extenders,' changes in the current policy on the death tax (in 2013, it will rise from 35% today to 55% and the exemption will fall from $5 million to $3.5 million), and the expiration of businesses' ability to fully expense new capital investments."

Saturday, May 19, 2012

SOCIAL SECURITY FACES UNFUNDED LIABILITY

Last fall I attended the National Tax Conference in Washington DC. A expert on Social Security was one of the speakers. He said that Social Security could avoid bankruptcy by making a few simple changes. The changes would not impact anybody that was 55 or older and would receive 87% of their benefits. Unfortunately the government does not have the guts to address the problem. Take a look at what CNSNews.com is reporting.

(CNSNews) -- CNSNews.com reports, "Social Security faces an unfunded liability of $8.6 trillion, according to the 2012 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds." According to the story, "the $8.6 trillion in unfunded benefits Social Security is expected to pay over the next 75 years equals $73,167.83 for each of the 117,538,000 households the Census Bureau said were in the United States in 2010."

To read more of this article: CLICK HERE


Friday, May 18, 2012

THE TAX SYSTEM EXPLAINED IN BEER

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this...

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.

So, that's what they decided to do.

The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve ball. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20." Drinks for the ten men would now cost just $80.

The group still wanted to pay their bill the way we pay our taxes. So the first four men were unaffected. They would still drink for free. But what about the other six men? The paying customers? How could they divide the $20 windfall so that everyone would get his fair share?

They realized that $20 divided by six is $3.33. But if they subtracted that from every body's share, then the fifth man and the sixth man would each end up being paid to drink his beer.

So, the bar owner suggested that it would be fair to reduce each man's bill by a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.

And so the fifth man, like the first four, now paid nothing (100% saving).
The sixth now paid $2 instead of $3 (33% saving).
The seventh now paid $5 instead of $7 (28% saving).
The eighth now paid $9 instead of $12 (25% saving).
The ninth now paid $14 instead of $18 (22% saving).
The tenth now paid $49 instead of $59 (16% saving).

Each of the six was better off than before. And the first four continued to drink for free. But, once outside the bar, the men began to compare their savings.

"I only got a dollar out of the $20 saving," declared the sixth man. He pointed to the tenth man, "but he got $10!"

"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar too. It's unfair that he got ten times more benefit than me!"

"That's true!" shouted the seventh man. "Why should he get $10 back, when I got only $2? The wealthy get all the breaks!"

"Wait a minute," yelled the first four men in unison, "we didn't get anything at all. This new tax system exploits the poor!" The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down and had their beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!

And that, boys and girls, journalists and government ministers, is how our tax system works. The people who already pay the highest taxes will naturally get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas, where the atmosphere is somewhat friendlier.

Wednesday, May 16, 2012

ILLEGAL IMMIGRANTS RECEIVED BILLIONS FROM THE IRS


Q: Does the IRS pay billions in tax refunds to workers who are in the U.S. illegally?

A: Yes. The Treasury Department’s Inspector General determined that $4.2 billion was paid in 2010, up from less than $1 billion in 2005. Leading Democrats are resisting a bill that would stop future payments.

This is a rare case of an Internet rumor with some substance to it. In fact, it’s shaping up as a major dogfight in Congress. At issue here are the federal child tax credits that can be claimed by persons with dependent children under age 17. Some Democrats are already defending these child tax credit payments that have gone to those without a valid Social Security number, accusing Republicans who want to end them of a heartless attack on children.

Several different versions of this viral email all cite a recent investigative story by an Indianapolis television station, but WTHR-TV is far from the first to notice. The Washington Post and others reported on this last year when the Treasury Department’s inspector general for tax administration issued a report on July 7, 2011. The title of the report summed up the IG’s finding: Individuals Who Are Not Authorized to Work in the United States Were Paid $4.2 Billion in Refundable Credits.
The credits currently amount to $1,000 per child, and they are “refundable,” meaning that parents may receive refunds even when they do not owe any tax.

The IG report stated that more than 2.3 million persons who did not have Social Security numbers valid for working in the U.S. got an average of roughly $1,800 each in 2010 in child tax credit refunds. That included 9,000 illegal immigrants who each got a total of $10,000 or more by retroactively claiming credits for tax years prior to 2010.

This from www.factcheck.org

Monday, May 14, 2012

LT. GOV. SHEEHY ANNOUNCES GAGE COUNTY AS LIVESTOCK FRIENDLY


(Lt. Governor's release) -- Lt. Governor Rick Sheehy this week announced that Gage County is Nebraska's newest Livestock Friendly County.  With the addition of Gage County, there are now 15 counties designated as Livestock Friendly through the state program, including: Adams, Box Butte, Dawes, Deuel, Garden, Grant, Hitchcock, Jefferson, Keith, Lincoln, Morrill, Sheridan, Wayne, and Webster Counties.  The county will receive road signs bearing the program logo to display along highways.  The program is coordinated by the Nebraska Department of Agriculture (NDA).  Additional information on the program is available by contacting NDA toll free at 800-422-6692, or by visiting www.agr.ne.gov.

Sunday, May 13, 2012

100% BONUS DEPRECIAITON

Q.  What are the odds for reinstating 100% bonus depreciation?

A.  The chances are getting lower as the year goes on. Some in Congress wanted to tie this provision to the extension of the two-percentage-point reduction in the employees’ share of Social Security tax, but it was stripped from the final package. On the good side I would imagine that other provisions that lapsed after 2011will be reinstated retroactively in a lame-duck session, including direct payouts from IRAs to charity, higher AMT exemptions and the write-off for state sales taxes.  Who knows what they will do in Washington.

Saturday, May 12, 2012

WORKING TO PAY STATE AND LOCAL TAXES

Friday, May 11, 2012

LARRY THE CABLE GUY

1. Cows
2. The Constitution
3. The Ten Commandments


COWS: Is it just me, or does anyone else find it amazing that during the mad cow epidemic our government could track a single cow, born in Canada almost three years ago,right to the stall where she slept in the state of Washington? And, they tracked her calves to their stalls. But they are unable to locate 11 million illegal aliens wandering around our country. Maybe we should give each of them a cow.

THE CONSTITUTION: They keep talking about drafting a Constitution for Iraq. Why don't we just give them ours? It was written by a lot of really smart guys, it has worked for over 200 years, and we're not using it anymore.

THE 10 COMMANDMENTS: The real reason that we can't have the Ten Commandments posted in a courthouse is this: you cannot post 'Thou Shalt Not Steal,' 'Thou Shalt Not Commit Adultery,' and 'Thou Shall Not Lie' in a building full of lawyers, judges and politicians, it creates a hostile work environment.

GET 'ER DONE!

Saturday, May 5, 2012

MIDLANDS DEMOCRATS UNITE


(Omaha World-Herald) -- Omaha.com reports that Nebraska and Iowa U.S. senators "joined together" last week "to help the Senate Agriculture Committee send a farm bill forward."  The article notes that the bill would change "federal crop subsidy programs," ending direct payments that "go to farmers based on historical production without regard to current prices or yields."  In place of the direct payments, the bill would boost support for federal crop insurance programs.  "Sen. Mike Johanns said that's an approach Nebraska farmers can get behind, based on his meetings with producers."  Meanwhile, Nebraska's Sen. Ben Nelson and Iowa's Sen. Chuck Grassley "touted the inclusion of a proposal they supported to limit overall farm payments under a new commodity program to $50,000 or $100,000 for a married couple."


To read more of this article: CLICK HERE

Friday, May 4, 2012

GR0WTH OF HIGH INCOME TAXPAYER


With proposals to increase tax rates on high-income taxpayers is in the news.  This graph from the Tax Foundation  shows the percentage growth of taxpayers earning over $200,000 (minus the percentage growth of all taxpayers) over the decade-long period from 1999 to 2009.
The $200,000 threshold is in nominal dollars, so all states will have had considerable growth, but the differences between the states demonstrate that certain states have had much stronger increases in wealthy taxpayers than others. North Dakota takes the top spot—returns with AGI over $200,000 increased 144.53%, while all returns increased only 7.1%—a considerable difference of 137.4%. Michigan is last—returns over $200,000 increased only 17.6%, while total returns actually decreased by 0.5%, for a final difference of 18.1%.

AMERICANS PAYING MORE IN TAXES THAN FOR FOOD, CLOTHING, AND SHELTER

In 2012, Americans will pay approximately $4.041 trillion in taxes, which is $152 billion, or 3.9%, more than they will spend on housing, food, and clothing combined, according to our new study by Adjunct Scholar Kevin Duncan. In addition, an increasing proportion of government benefits now go to pay for those same basic expenses of low-income Americans.

Thursday, May 3, 2012

NE WELL REPRESENTED IN LIST OF 100 LARGEST AG CO-OPS


(USDA Rural Development) -- According to the U.S. Department of Agriculture, the nation's 100 largest agriculture cooperatives reported near-record revenue of $118 billion in 2010.  Nine Nebraska cooperatives made the top 100 list.  Ag Processing, Inc. in Omaha ranked fifth with $3.3 billion. Producers Livestock Marketing Association also of Omaha, had revenue of $908 million; Cooperative Producers Inc. of Hastings, $643 million; Aurora Cooperative Elevator Company of Aurora, $614 million; Farmers Cooperative of Dorchester, $602 million; Central Valley Ag Cooperative in O'Neill, $506 million; United Farmers Cooperative of York, $450 million; Frenchman Valley Farmers Cooperative, Inc. of Imperial, $419 million; and Ag Valley Cooperative Non-Stock of Edison $289 million. 

For a complete list of the top 100 cooperatives, go to CLICK HERE