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Category: Tax

Keogh Plan

See Also: Pension Plans Deferred Income Tax Tax Brackets Contribution Margins Employee Stock Ownership Plan (ESOP) Keogh Plan Definition The Keogh plan was developed by a United States Representative from New York named Eugene Keogh. A Keogh plan is a tax deferred retirement plan which has some advantages to the self-employed companies that have less

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Flat Tax Rates

See Also: Marginal Tax Rate Prepaid Income Tax Tax Brackets Deferred Income Tax Cash Flow After Tax Flat Tax Rates Definition Flat tax rates refers to a single tax rate that is applied to all levels of income. In a flat tax rate system individuals with lower levels of income are taxed at the same

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Fiscal Period

See Also: 10 Q Cash Flow After Tax Business Cycle Audit Committee How Do You Know When It is Time to Buy New Software Fiscal Period Definition A fiscal period or fiscal year is defined as a 12 month period in which a business entity will account for all transactions and happenings dealing with that

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Federal Unemployment Tax Act (FUTA)

See Also: Payroll Accounting Social Security Rate Direct Labor PEO Arrangement Compared to Outsourcing Payroll Direct Labor Federal Unemployment Tax Act (FUTA) Definition The Federal Unemployment Tax Act (FUTA), defined as a tax that an employer alone must pay. Although the employer pays this tax, it is based solely on the amount of work and

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Deferrals Definition

See Also: Deferred Income Tax Accrual Based Accounting Accounting Principles Generally Accepted Accounting Principles (GAAP) Financial Accounting Standards Board (FASB) Deferrals Definition A deferral is used in accrual based accounting when an asset or liability has not been realized. It is recognized however because it will be recognized at a future date. Often times, a

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Dividends

See Also: Dividend Yield Capital Impairment Rule Dividend Payout Ratio Financial Ratios Dividends Explained Dividends are corporate profits distributed to shareholders. When a company makes a profit, the board of directors can decide whether to reinvest the profits in the company or to pay out a portion of the profits to shareholders as a dividend

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Direct Tax Definition

See Also: Indirect Labor Direct Labor Direct Cost vs. Indirect Cost Unsecured Credit Flat Tax Rates Tax Abatement Direct Tax Definition Direct tax, defined as a tax directly on the amount of a taxable item, is the current tax method of the U.S.A. Currently in the U.S., this includes taxes wages, property, capital gains, or

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Ad Valorem Tax

See Also: Flat Tax Rates Marginal Tax Rate Tax Brackets Tax Efficiency Internal Revenue Service (IRS) Special Tax Bond Ad Valorem Tax Definition Ad Valorem, which is Latin for “according to value“, refers to the taxes imposed on people usually by local or state municipalities. The two types are ad valorem property taxes and ad

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IRS Cracks Down on Employee Misclassification

I recently came across an interesting Wall Street Journal article discussing how the IRS has begun cracking down on employee misclassification. This is where employers misclassify workers as independent contractors to avoid payroll taxes and other employment-related expenses.  Many small businesses use contract workers in order to stay lean and, with the new healthcare changes on

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Taxes Drive Behavior!

Taxes Drive Behavior Example Taxes drive behavior in business! In 1839, a new design of sailing ship, the Scottish Maid, was launched in Aberdeen, Scotland. The Scottish Maid was the first British clipper ship designed to take advantage of the tonnage regulations imposed by Britain in 1836. The new regulations measured the depth and breadth

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Congress passes tax deal. What’s in it?

The Congress has passed, and the President is expected to sign, legislation which will, in effect, maintain Federal income tax rates at the levels which have been in effect for several years. So what will be the impact for you and your company? The tax and accounting publisher CCH has a good rundown which might

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Whole New Meaning For “Tax Return”

I was helping my daughter prepare her tax return last night. She graduated in May of 2009 and started a job in August 2009. As she was entering information into Turbo Tax, she asked me how much money she would get back. I informed her that she may or may not get any money back.

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