Don't forget to mail in your quarterly and annual payroll tax reports today. This includes your IRS 941 and 940 forms and Georgia state withholding and state unemployment quarterly reports. There are two state withholding reports this quarter - your quarterly report, G-7 and the annual report, G-1003. If your taxes were prepared by a CPA, then they will probably electronically file your W-3 with the IRS, but check the instructions from your CPA, as your individual CPA may handle things differently.
You also need to distribute to your employees their W-2s and to your contractors their 1099s today. The 1096 with the IRS copies of the 1099s needs to be filed by the end of February.
Thursday, January 31, 2008
Thursday, January 17, 2008
Where Do We Sue?
One of the questions that I get most often is "where do we file the lawsuit?" The simplest and most basic answer to this is: where the defendant is. Generally speaking, the court where the lawsuit is filed must have jurisdiction over the defendant, also known as personal jurisdiction.
There are several ways for a court to get personal jurisdiction, but the easiest and most obvious way is for the defendant to live in the territorial limits of the court. For a business, this includes the county in which the principal offices are. In the case of multiple defendants, you can pick any court that has jurisdiction over any one of the defendants.
There are other ways for a court to get personal jurisdiction over a defendant. Another common way that courts get jurisdiction is by agreement. In many contracts, particularly in the business contetxt, the parties agree to the personal jurisdiction of a given court. This is often determined by the stronger or bigger party to the contract or whoever drafts the contract.
Georgia also has a long-arm statute that allows the courts of Georgia to have personal jurisdiction over out-of-state residents when they have some sort of connection to this state. Generally, that involves situations where the defendant was once in the state - think a motorist driving through the state that gets in a car wreck - or has significant connections to the state - think a business advertising for sales in a state. In those cases, you have to follow the statute to determine where the lawsuit will be filed, but it is most often filed in the county where the harm occurred.
The above aren't the only ways for a court to get personal jurisdiction over a defendant, but are the most common ways.
There are several ways for a court to get personal jurisdiction, but the easiest and most obvious way is for the defendant to live in the territorial limits of the court. For a business, this includes the county in which the principal offices are. In the case of multiple defendants, you can pick any court that has jurisdiction over any one of the defendants.
There are other ways for a court to get personal jurisdiction over a defendant. Another common way that courts get jurisdiction is by agreement. In many contracts, particularly in the business contetxt, the parties agree to the personal jurisdiction of a given court. This is often determined by the stronger or bigger party to the contract or whoever drafts the contract.
Georgia also has a long-arm statute that allows the courts of Georgia to have personal jurisdiction over out-of-state residents when they have some sort of connection to this state. Generally, that involves situations where the defendant was once in the state - think a motorist driving through the state that gets in a car wreck - or has significant connections to the state - think a business advertising for sales in a state. In those cases, you have to follow the statute to determine where the lawsuit will be filed, but it is most often filed in the county where the harm occurred.
The above aren't the only ways for a court to get personal jurisdiction over a defendant, but are the most common ways.
Tuesday, January 15, 2008
Employment Forms for 2008
For 2008, the Georgia employment forms remain the same. However, the IRS W-4 and the Immigration I-9 have changed. All four forms are available through the DeCarrera Law, LLC website in the forms section.
Monday, January 14, 2008
Important Numbers for 2008
The highest estate tax rate remains at 45% and the exemption amount (the tax free part) also remains at $2 million. Meanwhile, in an effort to reduce your estate, you may give $12,000 under the annual exclusion.
For retirement plans, you can defer up to $15,500 through a 401(k) and $10,500 through a SIMPLE plan. Meanwhile, the IRA contribution limits increase to $5,000. All three retirement plans have higher limits if you above 50 ($20,500 for 401(k), $13,000 for SIMPLE, and $6,000 for IRA). Remember that you must have earned income to be eligible for those plans.
Speaking of earned income, the Social Security taxable wage limit has increased to $102,000. It'll be a little later in the year, if ever, before you see those taxes disappear from your check. If you are under the age of 65 and retired (lucky you!), you can earn up to $13,560 without losing your benefits.
Meanwhile, the kiddie tax is coming after your little ones that don't actually work for their income. The threshold increases to $1,800 for children up to the age of 19 unless they are full-time students, in which case the age limit is 24 years old.
But if you have a nanny or household help, you have to withhold taxes on wages over $1,600.
For retirement plans, you can defer up to $15,500 through a 401(k) and $10,500 through a SIMPLE plan. Meanwhile, the IRA contribution limits increase to $5,000. All three retirement plans have higher limits if you above 50 ($20,500 for 401(k), $13,000 for SIMPLE, and $6,000 for IRA). Remember that you must have earned income to be eligible for those plans.
Speaking of earned income, the Social Security taxable wage limit has increased to $102,000. It'll be a little later in the year, if ever, before you see those taxes disappear from your check. If you are under the age of 65 and retired (lucky you!), you can earn up to $13,560 without losing your benefits.
Meanwhile, the kiddie tax is coming after your little ones that don't actually work for their income. The threshold increases to $1,800 for children up to the age of 19 unless they are full-time students, in which case the age limit is 24 years old.
But if you have a nanny or household help, you have to withhold taxes on wages over $1,600.
Thursday, January 10, 2008
Let Your Family Know About Your Accounts
Even if you do not have a will, a trust, or any other parts of a complete estate plan, at least do one thing for your family before you die: Make a list of all your accounts with the following information:
The accounts you should be on this list include but are not limited to:
Also include information on how the bills are received (US Mail, Email, Website, etc) and paid (automatic draft, check, credit card, etc). Please do not leave your children in the dark because they do not know how to get the bill and how to pay for it. It is also helpful to leave your email addresses and passwords on this same list - often times you get notices or copies of bills at your email address that you may not receive in the mail.
Include on this list the name of any accountants or CPAs that may handle your tax matters, any attorney that you have worked with (especially if you have done any estate planning work with them), doctors, bankers, or other people that would have important information that your family would need to know.
After you have completed this list, let someone know where it is. If you want, you can seal it in an envelope to prevent disclosure of the information (you'll know when it has been tampered with). Do not leave it in your safe deposit box, however. If you are deceased, the bank will most likely seal the box until a court orders it opened.
If you fail to provide anyone with this information, your family will have to go through all your records to find this information. Some of it may be lost forever (if they don't know about that insurance policy, how can your family collect on it?) Your family will appreciate the fact that you were responsible and took the time to gather this information for them. Remember, you know best where your accounts are.
- Institution where the account is located
- Account Number
- PIN Number or Password
- The name and phone number of the broker or account representative, if any
- Estimated balances
The accounts you should be on this list include but are not limited to:
- Checking and Savings Accounts at your primary bank
- Checking and Savings Accounts at any secondary bank (think online Savings Accounts)
- Retirement Accounts
- Credit Cards
- Mortgages
- Safe Deposit Boxes
- Insurance Policies
Also include information on how the bills are received (US Mail, Email, Website, etc) and paid (automatic draft, check, credit card, etc). Please do not leave your children in the dark because they do not know how to get the bill and how to pay for it. It is also helpful to leave your email addresses and passwords on this same list - often times you get notices or copies of bills at your email address that you may not receive in the mail.
Include on this list the name of any accountants or CPAs that may handle your tax matters, any attorney that you have worked with (especially if you have done any estate planning work with them), doctors, bankers, or other people that would have important information that your family would need to know.
After you have completed this list, let someone know where it is. If you want, you can seal it in an envelope to prevent disclosure of the information (you'll know when it has been tampered with). Do not leave it in your safe deposit box, however. If you are deceased, the bank will most likely seal the box until a court orders it opened.
If you fail to provide anyone with this information, your family will have to go through all your records to find this information. Some of it may be lost forever (if they don't know about that insurance policy, how can your family collect on it?) Your family will appreciate the fact that you were responsible and took the time to gather this information for them. Remember, you know best where your accounts are.
Monday, January 7, 2008
Happy New Year
Happy New Year! It's been awhile since I posted anything, but now that it is 2008, it is as good a time as any to start blogging again. I am taking a little bit of a different approach to this than before. I will not be adding news bits unless I am using the news to explain a point. I will be using this Blog as more of an educational tool for my clients, friends, and those in and around the Georgia legal community. There will generally be around 2-3 posts per week. If you have any questions, comments, or suggestions, please let me know.
Once again, Happy New Year! Here's to a prosperous year with plenty of time off to enjoy family, friends, and the good times. Remember, that tomorrow is not a guarantee for any of us. Enjoy your time here today... and plan for the future... Your family would definitely love you all that much more if, when you die, you do not leave them with a mess of an estate.
Once again, Happy New Year! Here's to a prosperous year with plenty of time off to enjoy family, friends, and the good times. Remember, that tomorrow is not a guarantee for any of us. Enjoy your time here today... and plan for the future... Your family would definitely love you all that much more if, when you die, you do not leave them with a mess of an estate.
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