W-8EXP and W-8IMY are usually valid indefinitely provided that the information doesn’t change. W-8BEN, W-8BEN-E, and W-8ECI forms are usually valid for three years or as long as the forms contain correct information. Companies use Form W9 to collect names, addresses, federal tax classification, exemptions, and tax identification numbers (TIN) from W9 contractors, who are…
In addition to the non-cash asset, we may also issue the common stock in exchange for the service instead. In this case, the debit side of the journal entry will be the expense amounting to the cost or the fair value of the service that needs to be charged to the income statement instead. Common…
You can purchase QuickBooks Premier Plus or have access to built-in payroll with QuickBooks Premier Plus + Payroll. Your quickbooks desktop payroll cost annual subscription to either plan includes automated data recovery and backups, unlimited customer support, and automatic updates. QuickBooks, in addition to providing accounting software, also offers payroll services to businesses of all…
Hence, one of the predetermined overhead rate major advantages of predetermined overhead rate formula is that it is useful in price setting. For example, assume a company expects its total manufacturing costs to amount to $400,000 in the coming period and the company expects the staff to work a total of 20,000 direct labor hours.…
For these entities, the potential tax savings and cash flow benefits from deferring taxes can be substantial, especially in an inflationary economic environment. However, the main reason for discontinuing the use of LIFO under Bakery Accounting IFRS and ASPE is the use of outdated information on the balance sheet. Recall that with the LIFO method,…
As a refundable credit, the EITC not only reduces the amount of tax owed but can also result in a refund if the credit exceeds the taxpayer’s total tax liability. This makes the payroll EITC a powerful tool for reducing poverty, incentivizing work, and providing financial support to those who need it most. The credit…
In this case, you need to assign costs based on the source of those materials, i.e., whether they were purchased from an outside vendor or made in-house. The IRS mandates that you continue with your choice for the rest of the tax year based on GAAP regulations. And at the end of that year, changing…
