These changes are retroactive and apply starting January 1, 2017.
Business and rental income (Sole Proprietors, S Corporation and Partnership owners) which was previously exempt from Kansas tax is once again taxable.
Increase in tax rates for 2017. The highest rate will be 5.2% for those with Kansas income in excess of $60,000. These rates will increase again in 2018 to a high of 5.7%.
No taxpayer penalties or interest will be charged for underpayment of taxes due to this change in law as long as the underpayment is paid by April 17, 2018.
Limitations on itemized deductions will ease but not in 2017. Starting in 2018 a portion of medical expense will be allowed and mortgage interest and property tax deductions will phase back in.
For W-2 employees, Kansas withholding tax rates were updated on July 1, 2017. These rates have been updated for the remainder of 2017 at the higher 2018 rates to compensate for the first 6 months of withholding at lower rates. However, some employees may still not have enough tax withheld for the year.
WHAT STEPS TO TAKE:
Consider making higher KS estimated tax payments to avoid a large Kansas tax bill at April 17, 2018.
Consider having extra Kansas tax withheld from your paycheck.
Contact us to prepare a projection of the Kansas tax you may owe for 2017.
Please contact us if you have any questions or concerns about these changes!
https://www.payrollpartnersplus.com/wp-content/uploads/Kansas-vintage-map.jpg14142119Payroll Partners Plushttps://payrollpartnersplus.com/wp-content/uploads/2015/10/logo-transparent.pngPayroll Partners Plus2017-07-13 23:25:042017-09-26 00:00:18Do You Live or Work in Kansas?
Staffing errors can spell disaster for your start-up. Here are three to watch out for.
Staffing the firm with friends and family. While this strategy may work in some circumstances, hiring pals and relatives often spells trouble. For one thing, friends and family members often expect – even subconsciously – to be treated differently from other employees. A double standard, whether real or perceived, can hurt morale and productivity. As a general rule, focus hiring decisions solely on the needs of your firm and applicant qualifications.
Trusting in a handshake. Spell out employee arrangements in writing. This can be as simple as drafting employee offer letters that cover compensation, rights to intellectual property, and bonus arrangements. Employee handbooks are also a good way to spell out the responsibilities of your firm and staff.
Bringing in a partner for the wrong reasons. Downside risks of bringing in a partner include surrendering a portion of your company and control over important management decisions to someone else. Before selling part of your company, ask yourself what the partner will contribute besides money. Can you find other ways to fill gaps in your team? Choosing wisely can help you avoid ending up in the business equivalent of divorce court.
For assistance with issues facing your start-up business, give us a call.
https://www.payrollpartnersplus.com/wp-content/uploads/handshake.jpg8971280Payroll Partners Plushttps://payrollpartnersplus.com/wp-content/uploads/2015/10/logo-transparent.pngPayroll Partners Plus2016-12-05 21:56:382017-02-10 01:04:40Avoid Hiring Mistakes in Your Start-Up
As the owner of your business, you are the decider of salaries for your staff. That’s true for your own salary too. While there is no one-size-fits-all formula for determining how much to pay yourself, here are two factors to consider.
Regularly review and update your firm’s cash flow projections to determine the salary level you can sustain while keeping the business profitable. Your compensation may be minimal as you start up your business. However, beware of going too long without paying yourself a salary, and be sure to document that you’re in business to make a profit. Why? Otherwise the IRS may view your perpetually unprofitable business as a hobby – a sham enterprise aimed at avoiding taxes. That can lead to unfavorable tax consequences.
The market. If you were working for someone else, what would they pay for your skills and knowledge? When you’ve answered that question, discuss salary levels with small business groups and colleagues in your geographic area and industry. Check out the Department of Labor and Small Business Administration websites for salary information and national compensation surveys. In the early stages of your business, you may not be able to afford to pay yourself a salary commensurate with the higher ranges, but you’ll learn what’s reasonable.
For assistance with payroll issues or salary concerns, contact our office.
https://www.payrollpartnersplus.com/wp-content/uploads/salary.jpg365548Payroll Partners Plushttps://payrollpartnersplus.com/wp-content/uploads/2015/10/logo-transparent.pngPayroll Partners Plus2016-11-04 11:49:222017-02-10 01:04:33Your Business, Your Salary
Do You Live or Work in Kansas?
in Payroll/by Payroll Partners PlusIf so, the recent changes WILL AFFECT YOU!
WHAT YOU NEED TO KNOW:
WHAT STEPS TO TAKE:
Please contact us if you have any questions or concerns about these changes!
Avoid Hiring Mistakes in Your Start-Up
in Payroll/by Payroll Partners PlusStaffing errors can spell disaster for your start-up. Here are three to watch out for.
For assistance with issues facing your start-up business, give us a call.
Your Business, Your Salary
in Payroll/by Payroll Partners PlusAs the owner of your business, you are the decider of salaries for your staff. That’s true for your own salary too. While there is no one-size-fits-all formula for determining how much to pay yourself, here are two factors to consider.
For assistance with payroll issues or salary concerns, contact our office.