January 31, 2012 – Deadline to issue W-2, 1098, and 1099 forms to employees and independent contractors.

January 31, 2012 – Deadline for filing quarterly payroll & annual sales tax returns.

Depreciation and Section 179 Expense – Last year’s Small Business Jobs Act (SBJA) of 2010 increased the Section 179 deduction to $500,000.

The phase out threshold for qualifying Section 179 expenses increased to $2 Million, up from $800,000 previously.

Standard Mileage Rate – Beginning on January 1, 2011 through June 30, 2011, the standard mileage rate for operating an automobile for business use is 51 cents per mile.  From July 1, 2011 through December 31, 2011, the standard mileage rate increases to 55.5 cents per mile.

HIRE Act Worker Retention Credit – if your business hired a previously unemployed worker last year, 2011 is the year you qualify for up to a $1,000 tax credit for keeping that person employed.

Informational Reporting of Employer-Sponsored Health Coverage – Reporting employee’s annual cost of health insurance coverage on form W-2 is NOT mandatory until 2012. However, the ability to voluntarily report such information in 2011 using code DD in W-2 Box 12 will be included in the year end IRD for Sage ERP MAS 90 and MAS 200.

*Note: this information is intended as a helpful reference and is not to be relied on as tax advice from a qualified professional.