- January 31, 2013 – Deadline to issue W-2, 1098, and 1099 forms to employees and independent contractors.
- January 31, 2013 – Deadline for filing quarterly payroll & annual sales tax returns.
- Depreciation and Section 179 Expense – The maximum Section 179 deduction for 2012 is $139,000. The phase out threshold for total of equipment and software that can be purchased is $560,000.
- Standard Mileage Rate – The standard mileage rate for operating an automobile for business use is 55.5 cents per mile driven throughout 2012. If you recall, this rate is unchanged from the mid-year adjustment from 51 cents to 55.5 cents that went into effect July 1, 2011.
“Fiscal Cliff” – Be Ready for Change
There are several laws – including temporary payroll tax cuts and expiration of tax breaks for small business – that are set to change at midnight on December 31, 2012. While lawmakers debate over the best way to handle this conundrum referred to as the “fiscal cliff”, one thing is certain … change is coming. So stay tuned for last minute tax rate changes and be prepared to update your Sage ERP software throughout January 2013.
*Note: this information is intended as a helpful reference and is not to be relied on as qualified advice from a tax professional.