Newsletter November 2009

Martin H. Chan, P.C.
Over 10 Years Experience Providing Accounting, Tax and Payroll Services to Small Business Owners.

NOVEMBER 2009 eNEWSLETTER

In this issue:

Featured Tax Tips:

Philadelphia Sales Tax Increase to 8% Effective 10/8/2009
Chance to Escape Penalty - Pennsylvania Tax Amnesty
Philadelphia Job Creation Tax Credit Increasing to $3,000
New 50 Cents Tax on NYC Taxicab Rides Beginning 11/1/2009
New Jersey Homestead Rebate Application Deadline Extended to 11/2/2009

QuickBooks Tips: How to Prevent Dishonest Employees From Reporting Inflated Number of Working Hours

Philadelphia Sales Tax Increase to 8% Effective 10/8/2009 Effective Oct. 8, 2009, the City of Philadelphia is increasing its local sales and use tax rate from 1 percent to 2 percent. Therefore, the combined PA and Philadelphia sales and use tax rate is increasing to 8%.

Pennsylvania Tax Amnesty Pennsylvania authorized (under Act 48, signed into law on Oct. 9, 2009) a tax amnesty period from April 26 to June 18, 2010. During this limited, 54-day timeframe, the Pennsylvania Department of Revenue will waive 100 percent of penalties and half of the interest for anyone who pays his/her delinquent state taxes. Please check back closer to April 26, 2010, for more details on how to apply.

Philadelphia Job Creation Tax Credit Increasing to $3,000 On June 11, 2009, City Council passed Councilman Goode’s bill to increase the amount of the Job Creation Tax Credit in 2010 and 2011 from $1,000 to $3,000 (or 2% of salaries paid) for each new job created by new, participating companies. Mayor Nutter intends to sign this bill shortly. Currently, the City of Philadelphia offers the Job Creation Tax Credit or the JCTC. The JCTC program is administered by the Department of Revenue and provides approved companies with a non-refundable tax credit against their Business Privilege Tax for the creation of certified new jobs in Philadelphia. Application forms and procedures were developed and incorporated in amendments to the Business Privilege Tax regulations which became effective at midnight on March 23, 2003.

New 50 Cents Tax on NYC Taxicab Rides Beginning 11/1/2009 Every taxicab ride that starts in New York City and ends either in the city or in the county of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, or Westchester is subject to a 50 cent tax per ride.

New Jersey Homestead Rebate Application Deadline Extended to 11/2/2009 Information about the Homestead Rebate Program is available by calling the Homestead Rebate Hotline (1-888-238-1233 for homeowners or 1-888-213-8623 for tenants) from 8:30 a.m. to 4:30 p.m. Monday through Friday. Homeowners and tenants can find out the status of their Homestead Rebate check by calling 1-877-658-2972, or online at www.state.nj.us/treasury/taxation/homestead/hrintro.shtml. Rebate check information for homeowners who are under 65 and not disabled will not be available either online or by phone until October. Homeowners who still have not filed their Homestead Rebate applications can do so by phone (1-877-658-2972) or online at www.state.nj.us/treasury/taxation/. The automated telephone filing system and Internet filing application are available 24 hours a day, 7 days a week. The tenant rebate application and instructions are available on the Division of Taxation's Web site for those senior and disabled tenants who have not yet filed.

QuickBooks Tips

How to Prevent Dishonest Employees From Reporting Inflated Number of Working Hours One of the most popular employee fraud is reporting inflated number of working hours or "buddy punching" timeclock. To minimize these risk exposures, you may replace your time card system with a biometric identification machine (fingerprint scanner) to capture employees' hours. Martin H. Chan, P.C. can help you to install a reliable biometric identification machine (starting at only $299) which integrates seamlessly with payroll reporting to save you time and achieve internal control result.