Office Elf Bookkeeping

Do you know your numbers?

Boutique bookkeeping service for high end businesses
that expect excellence.

"Most small companies must file."

REGARDING THE CORPORTATE TRANSPARENCY ACT - BENEFICIAL OWNERSHIP of Business:

** TEMPORARY INJUCTION ON BOI - A federal district court issued a temporary injunction on 12/3/24. Please consult your attorney or CPA to determine if you should proceed or wait to file your BOI. **

Most small companies must file a Beneficial Ownership Information report with the US Department of Treasury's Financial Crimes Enforcement Network this year. Failure to comply with this mandate may result in penalties and jail time.

Please contact your attorney or CPA for more information.

You can learn more here: fincen.gov/boi

What you should be doing now . . .

4th Quarter 2024

If you hire outside help to run your business, don't forget to get a W9 BEFORE paying them for the first time. This will avoid the year-end scramble to gather forms from people you may not still work with.
If you have not gathered your W9s throughout the year, now is the time to request them from your vendors. Don't wait until January 2nd. 1099s are due the last day of January so not a lot of wiggle room.
Keep a written record of your business miles. The standard mileage rate for 2024 is .67 per mile which can add up!
Have your employees review their payroll information at least twice a year. Have they moved, gotten married, had a baby? All of these life events will affect withholdings and a new W4 should be prepared.
Please get your books in order now. Hire a bookkeeper, gather your receipts, review your payroll taxes, and determine how your will file your taxes. Do not try to hire an accountant/bookkeeper in February.
Make contributions to an IRA and HSA, research other ways to reduce your tax burden.
Submit your BOI! See above.

W2 vs 1099 Employees; what is the difference?
A new rule became effective March 11, 2024, regarding independent contractors.
Misclassifying an independent contractor as an employee or vice versa can trigger financial penalties from the IRS. If you are hiring or contracting with other individuals to provide services, consider the following when classifying employees:

Does the worker determine or meaningfully negotiate the charge or pay for the work provided?
Does the worker accept or decline jobs or chooses the order and/or time in which the jobs are performed?
Does the worker engage in marketing, advertising, or other efforts to expand their business or secure more work?
Does the worker make decisions to hire others, purchase materials and equipment, and/or rent space?
If a worker has no opportunity for a profit or loss, then this factor suggests that the worker is an employee.

Estimated Quarterly Payments
If you earn income that is not captured on a W2, consider paying estimated quarterly taxes for Federal, State, and Local entities. There are penalties if you owe more than a certain amount at tax time. Paying estimated quarterly taxes will also reduce the shock of a large (possibly unexpected) tax bill when you file your taxes.

These guys are probably independent contractors.

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