2017 Year End Planning

Forms and useful information ….Tax Planning

Here are some forms and useful information to review for your year end tax planning.  If you have not had your year end tax review yet and need to schedule an appointment yet, please click here:

  • To prepare for this appointment;

CLICK HERE: 2017 Year End Review Appointment Checklist

  • To use a fill in worksheet as a guide to send us,

CLICK HERE:  2017 Year End Review Fill-In Worksheet

  • For year end tax planning tips;

CLICK HERE for: Business End of Year Tips

CLICK HERE for:  Personal End of Year Tips

ALL S-CORPORATIONS, PLEASE NOTE THE FOLLOWING:

  • Your business year end is December.
  • All S-Corporations with a profit will need to some type of wage/payroll for 2017.
  • Your wages and taxes will be determined during your review appointment.

SIMPLE IRA Set-Up – DEADLINE October 1st.

Deadline is October 1st.

simple-iraIf you are looking to set up a SIMPLE IRA for your business in 2017, the deadline to do so is October 1st.  All new plans must be set up by October 1st to be used and funded in 2017.   Using a SIMPLE IRA will allow you to make both Employee (EE) contributions, along with Employer (ER) contributions.

Contribution Limits:

  • Employee contributions can be up to $12,500 for 2017.  The employer contributions may vary slightly, but would generally be about 3% of wages to all eligible employees.

Deadline to fund the plan.

  • Employee contributions – must be withheld from pay by December 31st and remitted to the investment firm as soon as reasonably possible
  • Employer contribution – must be made by the tax return due date, including extensions

questionsIf you have further questions about the SIMPLE IRA plan set up or options, please reach out to your financial advisor for information on this plan.  

Business by Design does not set up these plans or provide financial advice, however, we do want to be sure you are aware of the deadline.

Minneapolis/St. Paul Sick and Safe Time

The cities of Minneapolis and St. Paul have both passed ordinances requiring employers to adopt Sick and Safe Time leave policies. Both ordinances are set to go into effect on July 1, 2017. Employers in these cities should familiarize themselves with the rules of each ordinance.

 

What is the effective date of the ordinances?

  • Effective July 1, 2017 – Minneapolis and St. Paul
  • Effective January 1, 2018 – St. Paul Employers with fewer than 24 employees

Who is covered by the new ordinances?

Employees who work within the geographic boundaries of each respective city for at least 80 hours per year.  This applies to employers within the city limits of Minneapolis or St. Paul. Minneapolis also applies its ordinance to employers outside the city limits.

  • The Hennepin County District Court issued a temporary injunction on January 19, 2017, that prohibits enforcing the ordinance against any “employer resident outside the geographical boundaries of the city”. The City of Minneapolis agreed to follow the Court ruling until it is modified or rescinded.

What are the new ordinances?

Required Leave:

Employees can use sick and safe time for a number or reasons, including but not limited to:

  • Their own mental or physical health condition or to receive health care, or to care for a family member for the same purposes
  • For absence due to domestic abuse, sexual assault or stalking of the employee or a family member
  • For the absence due to the closure of the employee’s place of business by order of a public health official to limit exposure to infectious or hazardous materials
  • To accommodate an employee’s need to care for a family member whose school or place of care is closed due to inclement weather, loss of power or other unexpected reasons, or that have been closed by a public health official.

Note: the definition of “family member” extends beyond the immediate family.

Accrual and use of sick and safe time leave:

Although employers can be more generous, both ordinance require that, as a minimum:

  • Employees accrue one hour of sick and safe time for every 30 hours worked, up to a maximum of 48 hours per year. Exempt employees are deemed to work 40 hours by week unless their normal work week is less than 40 hours
  • Employees must be allowed to carry over accrued but unused sick and safe time to the following year. The total amount of accrued but unused safe and sick time need not exceed 80 hours at any time
  • Sick and safe time begins to accrue at the beginning of the employment relationship or the effective date of the respective ordinances, whichever is later.
  • Both ordinances allow employers to satisfy the accrual and carryover by frontloading 48 hours of sick and safe time to an employee, then providing at least 80 hours of earned sick and safe time at the beginning of each subsequent year.
  • Employees may begin using accrued sick and safe time beginning 90 calendar days after they begin their employment.

 

Is Sick and Safe Time paid or unpaid?

Minneapolis

For employers with 6 or more employees, sick and safe time is paid leave. For employers with 5 or fewer employees, such leave can be paid or unpaid, but not both.

St. Paul

Sick and safe time is paid leave for all eligible employees.

Notice to Employees:

Employers will be required to post notices to employees in a conspicuous location at each location where an employee works.  The notice must be in English and the other languages.  Employers who have a handbook must include a notice of employee rights and remedies in the handbook.

More Information:

The information provided here is general information and not inclusive of every rule and requirement of the ordinances. Business by Design does not provide legal or human resources advice and does not provide services for the tracking required for these ordinances. For specific questions about each of the ordinances follow the links below.

Minneapolis Sick and Safe Time Ordinance

St. Paul Sick and Safe Time Ordinance

REMINDER: Tax Payments, HSA and IRA contributions for 2016

 April 18thTAX RETURNS vs. TAX PAYMENTS:  What is due?

  • Your tax payment is due by April 18th.  Your tax return does not have to be filed by 4/18 as long as we have filed an extension.
  • If we have prepared your taxes in the past, and your taxes are not complete – rest assured, we have filed an extension for you, you do not need to do anything, or sign anything.

** IF YOU OWE TAXES — Your TAX PAYMENT is due by April 18th.  Your filing date can be extended, but not the payment **


EXTENSION PAYMENTS:

If you would like to make a tax payment for April 18th, Please contact us ASAP.  We will be happy to help you with this.  If you had a tax review completed by us for 2016, please refer to the notes from that meeting for our instructions on what you will need to do by 4/18.

If you have questions, please email:  darrellynn@mybbd.com.  He can get your questions to your BBD Accountant in Charge.

HEALTH SAVINGS ACCOUNTS (HSA) for 2016HSA Image

  • Funding for 2016:  Your 2016 HSA contribution needs to be funded by 4/18/17.  HSA contributions can not be extended with a personal tax extension.
  • Family Plan:  The max contribution for a family plan is $6,750.
  • Individual Plan:  The max contribution for an individual plan is $3,350.
  • Age 55+:  If you are 55+, you can add an additional $1,000 to your contribution.

NOTE:  Make sure you qualify to make a HSA contribution prior to making a 2016 contribution.

IRA’s and ROTH IRA’s for 2016 – Personal ContributionsIRA - Image

  • IRA Contributions:  The max IRA contribution is $5,500.   If you are 50 and older, you can an additional $1,000.   The IRA must be opened and funded by 4/18/17.  This contribution can not be extended with a personal tax extension.
  • ROTH IRA Contributions:   The max ROTH IRA contribution is $5,500.   If you are 50 and older, you can an additional $1,000.   The IRA must be opened and funded by 4/18/17.  This contribution can not be extended with a personal tax extension.

NOTE The due date of 4/18 DOES NOT apply to SEP’s and 401K contributions.  Those contributions can be extended with the due date of the Personal or Corporation tax return.

2017 Quarterly Estimated Payments

Quarterly estimated payment due dates:myBBDPass - Tax Due2

    • 1st Quarter Payment due on:  04-18-17
    • 2nd Quarter Payment due on: 06-15-17
    • 3rd Quarter Payment due on:  09-15-17
    • 4th Quarter Payment due on:  01-15-18

If your 2016 returns are currently complete, read here:

If we have completed your 2016 tax returns your estimated tax payments have already been calculated. You will need to log in to your myBBDPass account to access this information.

How much do I pay and how do I print my coupons? myBBDPass How To … Access Estimated Payments

Your 2017 Estimated Payments are printed to a separate .pdf file in your myBBDPass account.  For instructions on how to access your Estimated Coupons and Amounts, click here:  myBBDPass How To … Access Estimated Payments

NOTE:  If you have set your payments up for Automatic Withdrawals:

You will not need to mail in a payment.  Your filing instructions will indicate whether you need to write a check or if you are setup for automatic payments. Please note the amount and make sure the funds will be available in your PERSONAL bank account on the due date listed above.

If you have any questions or cannot locate your payment coupons, please email your accountant in charge or generalquestions@mybbd.com.

BBD has NOT completed my 2016 Tax Returns yet:

If your 2016 return is not complete yet, we HAVE NOT calculated your 2017 estimated payments.  If you think you will need to make a tax payment or want to make a payment, please email your accountant in charge or generalquestions@mybbd.com.