For businesses that have workers in the state of Ohio, Workers’ Compensation (OBWC) premiums can be a sizable, but necessary, expense. What can you do to help reduce costs in this area?

A new tax credit for businesses that hire unemployed veterans is now in effect. The credit amount varies with how long the veterans have been unemployed. It is 40% of the first $14,000 of wages paid to a veteran ($24,000 in wages if the vet is disabled) who have been jobless for six months or more in the year before they were hired. The credit is 40% of the first $6,000 of wages for vets who have been out of work at least four weeks but less than six months.

If you own your own business, it is imperative that you have a solid bookkeeping/accounting system in place. Not only will you need these records to complete your tax return, but you also need the information available to you to make the proper management decisions throughout the year.

After the enactment of the refundable American Opportunity Credit, Treasury inspectors estimate tax filers erroneously received $3.2 billion in credits for 2009 and 2010. Inspectors found the IRS was doing a poor job of policing returns, which contained these educational credits. (See TTW#87 for a refresher on refundable vs. non refundable credits.)

The 2012 optional standard mileage rate used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes is:- 55.5 cents per mile for business purposes- 23 cents per mile for medical or moving purposes- 14 cents per mile driven in service of charitable organizations

We wanted to take an opportunity to remind all our business owners that the 2011 Form 1099s are due to be filed in the coming weeks. Here’s a quick update.