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What small business owners can expect from changes to tax laws in 2015

Paul Dion CPA
Paul Dion CPA

MILLBURY, MA…

You probably have heard the expression, “No news is good news.” As it pertains to tax changes for businesses, little news is probably also good news—and bad news.

“Right now, the changes for the 2015 tax year are few and relatively modest,” said Paul Dion, owner of Millbury, MA-based Paul Dion CPA. “While this checklist outlines important tax changes for 2015, additional changes in tax law are more than likely to arise during the year ahead.”

2015 changes are as follows:

The standard mileage rate will go up from 56 cents per mile to 57.5.

The Section 179 expense deduction for equipment purchases will be decreasing to $25,000 of the first $200,000 of business property placed in service in 2015.

For employee health insurance expenses, the dollar amount is $25,800. This amount is used for limiting the small employer health insurance credit and for determining who is an eligible small employer for purposes of the credit.

Finally, if you provide transportation fringe benefits to your employees, the maximum monthly limitation for transportation in a commuter highway vehicle as well as any transit pass is $130 (same as 2014). The monthly limitation for qualified parking is $250 (same as 2014).

“Planning is the key ingredient to tax preparation. The businesses that are handcuffed by tax payments are typically the ones who don’t plan far enough in advance,” said Dion. “Working with a tax professional year round not only helps you plan but prevents additional changes to the tax laws from sneaking up on you.”

For a free consultation and planning tips for the coming tax year, please call Paul Dion CPA at (508) 853-3292. For more information, you can also visit www.pauldioncpa.com.

ABOUT PAUL DION, CPA

Beyond simple “bean counting”, Paul Dion, CPA and associates work side by side and speak in common English to help clients fully understand their tax situation and take proactive steps to pay the least amount of tax legally allowed while minimizing the risk of an audit.  Clients save money and sleep well as night.

Business services include small business accounting, payroll, cash flow management, strategic business planning, new business formation, internet controls, QuickBooks, part-time CFO, bank financing, succession planning and non-profit organization direction.

For a free book, more information or a complimentary consultation, please visit www.PaulDionCPA.com or contact Paul Dion CPA, via Info@PaulDionCPA.com or (508) 853-3292.  Offices are conveniently located at 22 West Street, #6, (Felter’s Mill), Millbury, MA  01527.

What small business owners can expect from changes to tax laws in 2015Read More

Tis the season to start your taxes? It is for small businesses—or should be.

Paul Dion CPA
Paul Dion CPA

MILLBURY, MA…

April 15 is synonymous as the day to pay taxes. Yet as a small business owner, the day you pay and the day you begin preparations should not be in the same calendar year. Particularly given the new tax laws over the past few years.

“The increases in several taxes last year—for example, the top tax rate for the top federal wage jumping from 35% to 39.6% in 2013—should have small businesses in the be prepared mindset now,” said Millbury, MA-based CPA Paul C. Dion. “But unless you earned that much last year, you probably aren’t thinking about that right now unless you are working with your accountant throughout the year.”

The top federal wage tax rate is but one tax increase Dion cites as having an impact on small business owners. For those who had to sell stocks or mutual funds to pay taxes for 2013 taxes, the capital gains tax rose in 2013 to 20 percent with a Medicare tax on those gains of 3.8 percent for some. That can make this year’s tax bill even steeper.

“Having your accountant come up with a tax projection before the end of the year can be very helpful in putting your finances in order for when it comes time to pay your taxes by April 15,” said Dion. “Yes, it’s true you might not have your final numbers but you can put together some sort of estimate to help plan. Even something as simple as working with your accountant to get all the forms you’re going to need together is something you can do now to make getting your taxes done easier.”

One headache-saving exercise Dion recommends small businesses undertake is going through the employee base and make sure all the information is up-to-date to ensure all the termination documents from former employees are filed with the proper arms of the government.

Early preparation also benefits small business owners who do business in multiple states. According to Dion, companies that do business across states have to deal with all types of notices and announcements regarding sales tax, income tax, use tax and various property taxes.

“If you do business in multiple states, it really is imperative that you begin your tax preparations now,” said Dion. “Otherwise, as a small business owner, you could be looking down the double barrel of large tax bills from both federal and state government.”

For a free consultation and planning tips for the coming tax year, please call Paul Dion CPA at (508) 853-3292. For more information, you can also visit www.paulcdioncpa.com.

ABOUT PAUL DION, CPA

Beyond simple “bean counting”, Paul Dion, CPA and associates work side by side and speak in common English to help clients fully understand their tax situation and take proactive steps to pay the least amount of tax legally allowed while minimizing the risk of an audit.  Clients save money and sleep well as night.

Business services include small business accounting, payroll, cash flow management, strategic business planning, new business formation, internet controls, QuickBooks, part-time CFO, bank financing, succession planning and non-profit organization direction.

For a free book, more information or a complimentary consultation, please visit www.PaulDionCPA.com or contact Paul Dion CPA, via Info@PaulDionCPA.com or (508) 853-3292.  Offices are conveniently located at 22 West Street, #6, (Felter’s Mill), Millbury, MA  01527.

Tis the season to start your taxes? It is for small businesses—or should be.Read More

How to pay off debt the smart way

Paul Dion CPA
Paul Dion CPA

MILLBURY, MA…

Between mortgages, car loans, credit cards, and student loans, most people are in debt to one degree or another. While everybody would like to be debt-free, for most people it’s a matter of managing debt better since you are likely to have some type of debt most of your life—particularly if you own a home. Yet most people don’t know how to manage debt so they can actually reduce their debt to eventually be close to debt-free.

“You don’t need to shell out your hard-earned money because of exorbitant interest rates or always feel like you’re on the verge of bankruptcy,” said Paul Dion, a Millbury, MA-based CPA who works with individuals and small business on tax strategies. “It is possible to pay off your debt while at the same time saving money so you can pay that debt off even faster.”

Dion recommends first assessing the depth of your debt. Write it down using pencil and paper or use a spreadsheet like Microsoft Excel. You can also use a bookkeeping program such as Quicken. Include every instance you can think of where a company has given you something in advance of payment, including your mortgage, car payment(s), credit cards, tax liens, student loans, and payments on electronics or other household items through a store.

Record the day the debt began and when it will end (if possible), the interest rate you’re paying, and what your payments typically are. Next, add it all up–as painful as that might be. Try not to be discouraged! Remember, you’re going to break this down into manageable chunks while finding extra money to help pay it down.

“It’s really a matter of identifying and addressing the high-cost debts first. That usually means credit cards. You don’t need to cut those up, just don’t use them,” said Dion. “Then you want identify the card with the highest interest and pay off as much as you can every month. Pay minimums on the others. When that one’s paid off, work on the card with the next highest rate.”

Dion recommends doing whatever you can to retire debt. That includes taking on a second job and using that income only for higher payments on your financial obligations. Or substituting free family activities for high-cost ones and selling high-value items that you can live without (e.g. Do you really need the 800-channel cable option or that satellite dish on your roof? You’ll be surprised at what you don’t miss.

“As you save and make payments you are not only retiring your debt, but building a stellar credit rating. If you ever move or buy another car, you’ll want to get the lowest rate possible. A blemish-free payment record will help with that,” said Dion. “One thing you never want to do is miss a payment, especially when you are paying off credit cards. Credit card companies can be quick to raise interest rates because of one late payment. A completely missed one is even more serious.”

For more information and guidance on retiring debt, you can call Dion for a complimentary initial consultation at 508-853-3292.

ABOUT PAUL DION, CPA

Beyond simple “bean counting”, Paul Dion, CPA and associates work side by side and speak in common English to help clients fully understand their tax situation and take proactive steps to pay the least amount of tax legally allowed while minimizing the risk of an audit.  Clients save money and sleep well as night.

Business services include small business accounting, payroll, cash flow management, strategic business planning, new business formation, internet controls, QuickBooks, part-time CFO, bank financing, succession planning and non-profit organization direction.

For a free book, more information or a complimentary consultation, please visit www.PaulDionCPA.com or contact Paul Dion CPA, via Info@PaulDionCPA.com or (508) 853-3292.  Offices are conveniently located at 22 West Street, #6, (Felter’s Mill), Millbury, MA  01527.

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Millbury, MA–based Accountant Paul Dion launches non-profit division

Paul Dion, CPA CTC.
Paul Dion, CPA CTC.

MILLBURY, MA…

Being a “non-profit” business doesn’t mean you have the luxury of running an inefficient organization. Far from it. With boards of directors and donors to answer to, non-profits not only have to run more efficiently, but utilize all the tax strategies and benefits available to them. To help local and regional nonprofits, Millbury, MA-based CPA Paul C. Dion has established a non-profit division.

“As a non-profit, the tax laws are quite specific and can have some serious ramifications if all the i’s aren’t dotted and t’s crossed,” said Paul C. Dion, CPA, CTC. “Our new division was set up to help not-for-profits set up and maintain their tax-exempt status by handling all their IRS reporting,”

Some of the services provided by the non-profit division include:

  • Design, install, and maintain your Accounting System
  • Weekly, bi-weekly, or monthly payroll preparation
  • Payroll tax preparation and deposits
  • Training for your accounting personnel
  • Completion and filing of non-profit status application
  • Training for non-profit’s board on non-profit financial statement usage and effective budgeting practices
  • Preparation and filing 990 and 990T tax forms
  • Preparation of initial start-up documentation, including incorporation, federal employee identification number (FEIN), and payroll setup with federal and state agencies.

The new nonprofit division will also work with churches, including the preparation of the pastoral housing allowance and other required benefit documentation to meet the complex dual status of ministers. In addition, Paul Dion CPA will offer preparation services for new nonprofits filing 501 (c)(3) applications for tax-exempt status.

“Non-profits face plenty of challenges before you take into consideration taxes and special filings,” said Dion. “With this new division, we can help existing and new nonprofits focus the bulk of their attention on the good and important work they are doing.”

For a free consultation, please call Paul Dion at (508) 853-3292. For more in-depth information on Paul C. Dion’s nonprofit services, visit www.paulcdioncpa.com.

ABOUT PAUL DION, CPA

Beyond simple “bean counting”, Paul Dion, CPA and associates work side by side and speak in common English to help clients fully understand their tax situation and take proactive steps to pay the least amount of tax legally allowed while minimizing the risk of an audit.  Clients save money and sleep well as night.

Business services include small business accounting, payroll, cash flow management, strategic business planning, new business formation, internet controls, QuickBooks, part-time CFO, bank financing, succession planning and non-profit organization direction.

For a free book, more information or a complimentary consultation, please visit www.PaulDionCPA.com or contact Paul Dion CPA, via Info@PaulDionCPA.com or (508) 853-3292.  Offices are conveniently located at 22 West Street, #6, (Felter’s Mill), Millbury, MA  01527.

Millbury, MA–based Accountant Paul Dion launches non-profit divisionRead More