Rivero CPA

October 11, 2019

Employees who make less than $35,568 are now eligible for overtime pay under a final rule issued recently by the U.S. Department of Labor. The new rate will take effect Jan. 1, 2020. To be exempt from overtime under the federal Fair Labor Standards Act, employees must be paid a salary of at ...

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It's “Back-To-School” season and an appropriate time to check into tax credits that can help with the cost of higher education. This works by reducing the amount of tax someone owes on their tax return. If the credit reduces tax to less than zero, the taxpayer may get a refund. If you pay for ...

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More changes could be coming to the rules governing overtime for employees whose hours worked change from one week to the next. The U.S. Department of Labor recently indicated it would examine ways that employers who pay bonuses and other incentives can be given more flexibility in calculating ...

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The IRS is warning taxpayers and tax professionals about a new IRS impersonation scam campaign spreading nationally on email. The IRS does not send unsolicited emails and never emails taxpayers about the status of refunds. The IRS this week detected this new scam as taxpayers began ...

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The House Ways and Means Committee held a legislative hearing Thursday on the Social Security 2100 Act, a bill that would increase the Social Security Tax to 14.8%, a 2.4 percentage point increase or about a 20% tax increase. If enacted, both businesses and employees would see their payroll ...

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Two new bills were recently signed in New Jersey. The first requires colleges to provide students with detailed information to help them “know before you go.” This clarifies the net cost of their tuition and programs before and after loans. The second requires lenders to be licensed by the ...

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Calling employee misclassification a crisis, Gov. Phil Murphy stated that New Jersey workers lost out on $46 billion in wages and benefits in 2018 because they were not properly paid due to employee misclassifications. A task force appointed by Murphy in 2018 found more than 12,300 cases where ...

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New Jersey voters will decide this November whether veterans can still get their property tax deduction even if they live in continuing-care retirement communities. Here's what's happening: State law provides that veterans (and their surviving spouses) who served in active duty during war and ...

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The first phase of implementing New Jersey’s higher minimum wage is officially less than two months away. Beyond that, however, some businesses will see their minimum wage requirements rise more slowly than most employers in the state. Eventually, everyone will get to a $15 an hour minimum wage, ...

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The IRS reminds small businesses that recent tax reform legislation lowered the backup withholding tax rate to 24 percent and the withholding rate that usually applies to bonuses and other supplemental wages to 22 percent. Small business owners should encourage their employees to check their ...

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The IRS has adjusted the limits on deductions for contributions to a health savings account, to account for inflation. Let's break it down. What's an HSA and an HDHP? An HSA, Health Savings Account, helps taxpayers with family coverage under a high-deductible health plan, or HDHP. Those ...

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The biggest Tax Day is over — and before you put it out of your mind entirely, use the results from last year to plan for this year's better results. There are plenty of things that are under your control when it comes to tax results. Checking and then adjusting your tax withholding can help ...

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The IRS Explains the Tax Treatment of State and Local Tax Refunds The IRS has clarified the tax treatment of state and local tax refunds arising from any year in which the new limit on the state and local tax (SALT) deduction is in effect. Read it here. The IRS Revises the EIN Application ...

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Let’s face it, business owners of all varieties of industries can count on one thing we have in common – the dread of filing taxes. And when we dread something, we tend to put it off – if April 15 is our deadline, we can sit down to do our taxes on the 14th, right?   If you’ve ever been ...

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Governor Phil Murphy recently signed legislation that will raise New Jersey's minimum wage to $15 per hour by 2024. The current minimum wage in New Jersey is $8.85 per hour. Under the new law, the base minimum wage for New Jersey workers will increase to $10 per hour on July 1, 2019. By Jan. 1, ...

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Do you have everything in order? Start to gather all of your tax documents. Let us know once you have everything for us to begin the process of preparing your tax returns.  There are a lot of changes with the Tax Cuts and Jobs Act that impact personal returns, as well as businesses. We are here ...

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The IRS has announced cost-of-living adjustments for tax year 2019. The contribution limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000. The limit on annual contributions to an IRA is ...

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An increasing number of people over 50 are deciding to share a living arrangement with a partner rather than get married. There are about 18 million people of all ages in these relationships, the Pew Research Center notes, up about 30 percent in less than a decade. About one-quarter of them are ...

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Are you self-employed? Have one or more part-time jobs (or as they call it now, a "side-hustle")? Now more than ever, people are taking advantage of the gig economy, which refers to people who make extra income or a living by doing freelance or contract work and who don’t have just one full-time ...

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Make sure you understand the new rules for what you can and cannot deduct for business expenses relative to entertaining clients. A new rule recently eliminated the deduction for expenses related to entertainment, amusement or recreation. You can still deduct 50 percent of the cost of business ...

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The IRS has announced a new format for individual tax transcripts, one that better protects taxpayer data. The new transcripts made available Sept. 23 redact personally identifiable information from the Form 1040 series, according to the IRS. The new transcript will be the default format ...

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Don’t let the government catch you by surprise. The following IRS deadlines are ahead: Sept. 17 – Third-quarter estimated income tax payments Sept. 17 – Income tax returns for calendar year partnerships and S corporations on extension Sept. 20 – New York second-quarter sales tax ...

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The 2019 New Jersey budget that Governor Phil Murphy recently agreed to contains changes and tax increases for businesses. The reforms are quite complex. A few key highlights: An increase in the income tax rate to 10.75 percent for taxpayers with income of $5 million and ...

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The IRS plans to streamline the Form 1040 into a shorter, simpler form for the 2019 tax season. The new 1040 – about half the size of the current version – would replace the current Form 1040 as well as the Form 1040A and the Form 1040EZ.    This new approach will simplify the 1040 so that ...

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Last year, the President signed legislation that repealed the “penalty tax” for not having health insurance for tax years beginning on or after Jan. 1, 2019.   On May 31, Governor Murphy signed into law the “New Jersey Health Insurance Market Preservation Act,” which establishes a “shared ...

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Paid sick leave is now the law in New Jersey. New Jersey has passed a paid sick leave law which preempts paid sick leave ordinances adopted by several cities and towns so there is now one uniform law in this area for New Jersey employers. Here is what you need to know about the new law.

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Undeniably, divorce will have a significant effect on your life and especially your finances. There are around 800,000 divorces in the United States each year, according to the National Center for Health Statistics. Here's how to enter into the situation financially informed. Know The Costs ...

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The IRS recently announced relief for taxpayers with family coverage under a High Deductible Health Plan (HDHP) who contribute to a Health Savings Account (HSA).   For 2018, taxpayers with family coverage under an HDHP may treat $6,900 as the maximum deductible HSA contribution.   The ...

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The IRS recently warned of a new twist on an old phone scam as criminals use telephone numbers that mimic IRS Taxpayer Assistance Centers (TACs) to trick taxpayers into paying non-existent tax bills.   The IRS, the state tax agencies and the tax industry – urge taxpayers to remain alert to ...

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Millennials are on the move, but studies are finding ways they can be enticed to remain living in NJ.Redeveloping urban areas could assist in making the state more appealing. Almost 90 percent of millennials today live in metro areas, according to a June 2017 article in Governing magazine. How ...

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