Tax Relief Passed

Summary of the Reid Tax Relief, Unemployment Insurance

Reauthorization and Job Creation Act of 2010

I. Temporary Extension of Tax Relief
Two major bills enacting tax cuts for individuals expire at the end of 2010: the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA); and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA). The following package extends these provisions from EGTRRA and JGTRRA for an additional two years, through 2012, and will provide important tax relief to American taxpayers. The following package also extends a number of provisions enacted as part of EGTRRA that were modified in the American Recovery and Reinvestment Act.

Reductions in Individual Income Tax Rates

Temporarily extend the 10% bracket. Under current law, the 10% individual income tax bracket expires at the end of 2010. Upon expiration, the lowest tax rate will be 15%. This proposal extends the 10% individual income tax bracket for an additional two years, through 2012.

Temporarily extend the 25%, 28%, 33%, and 35% brackets. Under current law, the 25%, 28%, 33%, and 35% individual income tax brackets expire at the end of 2010. Upon expiration, the rates become 28%, 31%, 36%, and 39.6% respectively. This proposal extends the 25%, 28%, 33%, and 35% individual income tax brackets for an additional two years, through 2012.

If you need help go to www.BleifeldCPA.com and contact the firm.

Wiley Practitioner's Guide to GAAS 2010: Covering all SASs, SSAEs, SSARSs, and Interpretations

Theory of Employment - Larry Winget meets Selden/Colvin Angel Customers

I have been expanding a theory by the authors Winget, Selden and Colvin related to staffing and managing employees I thought you may be interested in.

In any company you have 20% of the worker who are great, 20% who are bad and 60% in the middle.

The Top 20%

These are workers you don't even have to manage.  Just stay out of their way and try to make them happy.  The top 20% probably do 50% of the work that gets done in a company.  Unless you company is growing at a fast rate you will not be able to keep the top 20% long term as they are on such a fast track to success that they will eventually out grow the company. 

The Middle 60%

These are worker who are average in every way.  These are the workers who need the bulk of a managers time in training, review and mentoring to either motivate them into improve into the top 20% or show that they are actually a bottom 20% performer and should be replaced.  The middle 60% contributes about 60% of the workload.

The Bottom 20%

These are the worker where most managers spend the bulk of their time.  It is a waste for both you and the worker as you need to be focusing on getting the most out of your productive employees and not babysitting these jokers.  The bottom 20% of workers should be put on notice and fired unless they move into one of the higher categories in a short time.  They may be nice people, but they are not doing their fair amount of work.  The bottom 20% probably contributes -10% of the workload as their errors and lack of diligence cause more work for the other two categories.

So that is the basics of the theory.  My contention is that if a company does not fire the bottom 20% of employees and it is true that the top 20% leave then eventually you will end up with 50% or more of the employees in the bottom 20% of performance.  I believe that unproductive workers, much like unproductive customers actually do negative work as they cause problems for the rest of your workers.

Form 1040X

Bleifeld CPA Tax Form of the Day

http://www.irs.gov/pub/irs-pdf/f1040x.pdf

The 1040X is the way to ammend or correct a tax return. They are undated and can be used for multiple years. A friend of mine who insists doing his own taxes missed a 30k tax deduction for a theft loss. I had to explain to him about the 1040X and how he could refile and get his money back.

Tax form of the Day IRS Form 945

  http://www.irs.gov/pub/irs-pdf/f945.pdf

Tax form of the day

This form is used to report withholding on non-wage tax withholding.
Use Form 945 to report withheld federal from nonpayroll payments. Nonpayroll
payments include:
• Pensions
• Military retirement
• Gambling winnings
• Indian gaming profits
• Voluntary withholding on certain government income tax withholding from pensions, annuities, and Indian gaming profits
• Backup withholding

Good Reference for doing business in Latin America

Go Read Crush It today

Hello everybody.   Just wanted everybody to read Crush It! by Gary Vaynerchuk if you have not done so yet.  It is fantastic