Year End Tax Tip

**Washington’s minimum wage will increase to $9.47 per hour beginning Jan. 1, 2015

** Seattle’s New minimum Wage Ordinance – For employer with less than 500 employees, minimum wage will increase to $11.00 beginning April 1, 2015- Dec31, 2015. If employees do receive tips and/or payments to a medical benefits plan, the employer can pay $10.00/hour as minimum wage, plus $1.00/hour made up of tips and/or contributions to a medical benefits plan.  http://murray.seattle.gov/minimumwage/#sthash.9poqOzOM.dpbs

INDIVIDUAL-  Updates in 2014

  1. Beginning in 2014- Obama Care- Health insurance mandate for Individual- Please let your tax preparer know whether you and your family had health insurance during 2014.
  2. Marketplace Open Enrollment for 2015 ends Feb 15, 2015. wahealthplanfinder.org
  • Reminder : (FBAR) Reporting of foreign asset for aggregate values that exceeds $10,000 by June 30, 2015 to Dept of Treasury.
  1. Reminder: (FATCA)- Reporting of Foreign financial asset for aggregate values that exceeds$50,000 to the IRS when filing your 1040.

 **Civil penalties for a non-willful violation can range up to $10,000 per violation for above informational returns.**

BUSINESS- Updates in 2014

  1. Starting January 1, 2015, employers with 100 or more full-time equivalents employees are required to provide minimum essential health insurance coverage to full time employees.
  2. Starting January 1, 2016, the employer mandate will apply to employer with 50 to 99 full-time equivalent employees.
  • 1099 filing requirement – Please let your tax preparer know if you paid $600 or more for independent contractors.
  1. 2014/2015: IRA contribution Limit: $5,500

 IRA Catch up Contribution Limit for  those age 50 or over: $6,500

**Can contribute 2014 IRA by April 15, 2015**

 

  1. Auto Expense: Standard Mileage Rate for Business

-2014:  56 cents per mile

-2015:  57.5 cents per mile

**** Maximum penalty for failure to file Form 1099 could be up to $500 per 1099.    

          **** Remember to obtain W-9 form from your service provider