Stortz and Associates
April 2008 Newsletter

april 2008 office hours

 

EMMAUS & BETHLEHEM OFFICES:

APRIL 1st – 14th:

Monday:  9 AM – 6 PM (Bethlehem Office:  9 AM – 5 PM)

Tuesday – Thursday:  8 AM – 6 PM

Friday:  8 AM – 5 PM

Saturday:  9 AM – NOON (Bethlehem Office:  Closed)

TUESDAY, APRIL 15th: 

8 AM – NOON

WEDNESDAY, APRIL 16th: 

Closed

THURSDAY, APRIL 17th: 

8 AM – 10:30 AM

APRIL 18th - 30th:

Monday:  9 AM – 5 PM

Tuesday – Friday:  8 AM – 5 PM

 

2007 IRA CONTRIBUTIONS

Don’t forget - IRA contributions for 2007 can be made up to and including April 15th.  The deadline to submit any contributions to our office is April 11th in order to be deposited into your brokerage account.  If you have any questions, please call our office at 610-967-4711.

 

BUDGETS

After you have worked so hard for your money, isn’t it a good idea to know where it is going?  Every business, large or small, needs a budget to keep a handle on their finances.

The purpose of preparing a budget is to give you the financial tool you need to analyze your income and expenses.  The budget measures where you are spending your money, helps identify problems, and reveals opportunities for where you need help.

You should budget both income and expenses in order to meet the goals that you have set forth for your company.  A convenient way to do all this is through your computerized software!

Both Peachtree and Quickbooks have efficient tools to help implement your budget, and will track your income and expenses versus the budgeted amount.  Once implemented, you will be able to run reports that will help you analyze the areas where you are doing well and the areas that need improvement and attention.

Please call our office to schedule an appointment to review your budget and help train you on the budget features available in your software.  Start saving money today!

 

REDUCTION IN WORKER'S COMPENSATION COSTS

Governor Rendell announced a 10.22 percent overall decrease in workers’ compensation costs that will result in $250 million in savings for Pennsylvania employers.

This is the fourth time Pennsylvania has reduced workers’ compensation costs since Governor Rendell took office.  With this most recent decrease, employers will have realized more than $750 million in savings in six years.

The overall 10.22 percent cost decrease announced is an average.  Costs and savings will vary by type of business, as well as specific claims history.  Some employers will see savings, while others may not.

Governor Rendell’s Protecting our Progress initiatives will build on the advancements made during the past five years and invest in Pennsylvania’s infrastructure, communities and citizens to continue creating jobs and growing the economy.

For more information on Governor Rendell’s budget proposal, visit www.pa.gov.

Source:  PA Labor & Industry

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2008 economic stimulus package - help for taxpayers & businesses

The IRS is assuring individuals who file a 2007 tax return by April 15 that they will receive their rebate checks sometime between May and August.  Distribution will be based on the last two digits of the Social Security number used on the return.  On a jointly filed return, the first Social Security number listed will determine the deposit or mailing date.  The distribution schedule is as follows:

Electronic deposit:  If the last two digits of the recipient’s Social Security number are 00-20, the rebate should be sent to their bank account by May 2; 21-75 by May 9; and 76-99 by May 16.  Those who have specified a split refund on their 2007 return will find that the check will be deposited in full in the first account listed.

Paper checks:  If the last two digits of the recipient’s Social Security number are 00-09, the rebate check should be in the mail by May 16; 10-18 by May 23; 19-25 by May 30; 26-38 by June 6; 39-51 by June 13; 52-63 by June 20; 64-75 by June 27; 76-87 by July 4; and 88-99 by July 11.

There is also a benefit for businesses under the Economic Stimulus Act of 2008.  Current law states that in its first year, a business can write off a substantial portion of a property’s cost, regardless of what the depreciation rules require.  The property must be purchased for use in a trade or business.  It cannot be held for investment or the production of income.  Property that is purchased for personal use and then converted to business use does not qualify for expensing.  Also, the business must purchase the property (new or used).  Property acquired in an exchange can be expensed, with the exception of the portion of its basis determined by the basis of the old property.

Initially, the write-off limit was $25,000, then Congress raised it to $100,000.  Indexed for inflation, the amount rose to $128,000 for 2008.  The Stimulus Act raises the ceiling to $250,000 – but only for 2008.  Also, this amount applies to any business whose taxable year begins in 2008.

After 2008, the ceiling drops to $125,000 for 2009 and 2010 (indexed for inflation) and $25,000 for 2011 and beyond, with no inflation adjustments.

The ceiling begins to phase out when the business’s investment in other eligible property hits certain stated levels.  When the expensing cap was $128,000, it began to phase out dollar-for-dollar at $510,000.  Under the new law, the new investment ceiling limitation is $800,000; write-offs can be taken until business purchases reach $1,050,000.

Source:  CCH Federal Tax Weekly, February 21, 2008

BAD CHECK RESTITUTION PROGRAM

Lehigh County District Attorney James B. Martin has recently organized a new program for business owners called the Bad Check Restitution Program – an initiative aimed at obtaining all monies due to the victim (a.k.a. the business which received the bad check) without adding to the financial burden of the criminal justice system.

First-time offenders are given an opportunity to avoid criminal prosecution by attending a mandatory intervention class, in addition to paying the amount due on the check – all of which takes place at no additional cost to local taxpayers.  The offender is required to cover all costs to attend these educational classes.

Here’s how the program works:

  • After receiving a bad check, contact the check writer.  Send a certified letter attempting to retrieve the funds.  Be sure to make the check writer aware that they have a 10-day window to respond and remit payment.
  • If you do not hear back from the check writer within that time frame, call the Bad Check Restitution Program at 866-444-7741 to obtain a bad check crime report form.
  • Fill out the crime report form, attach the original checks and other documentation (make photocopies for your records) and mail to Lehigh County, District Attorney, Bad Check Restitution Program, P.O. Box 988, Allentown, PA  18105-0988.

    •  

    A check is eligible for this program if:

  • The amount of the check must equal no more than $2,500.
  • The check must be received in Lehigh County (if Northampton county, see website information below), deposited in a bank in exchange for goods or services and was presumed “good” at the time of acceptance.
  • A “Certified Notice” was sent to the check writer allowing 10 days to make check good.
  • The check is submitted to the program within 90 days from the date on the check.
  • A photo I.D. (driver’s license or state I.D. card) was recorded at the time of the transaction.

    •  

    A check is ineligible for this program if:

  • It is post-dated.
  • Both parties knew there were insufficient funds at the time of the transaction.
  • It is a two-party or government check.
  • The identity of the check writer is unknown.
  • There is no amount, date, or signature on the check.
  • It has not been processed by a bank.
  • The numeric and written amounts on the check do not match.

    •  

    For more information regarding this program, or to obtain forms, log onto www.checkprogram.com/lehighcountypa or www.checkprogram.com/northamptoncountypa 

    Source:  www.checkprogram.com

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