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2023 Payroll Forms

Below you will find the W-4's, WH-4's (for Indiana employers), IL-W-4's (for Illinois employers), NC-4's (for North Carolina Employers), and I-9's. Print copies of the attached forms and have all new employees fill out the W-4 and the appropriate state form. We will need copies of these forms for our files as soon as possible. Please note that North Carolina employees may fill the NC-4.

All new employees must also fill in the I-9 form and we will need a copy of this form for our files. The I-9 form needs to be completed by the employee and the employer. The instructions that come with this form give you the guidelines to follow. Please make sure the employees have filled this form out completely and that you have verified their identification against the form.

If these forms have not been filled out completely or information has changed, a new form needs to be completed. Please feel free to call us if you have any questions.

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Indiana County Tax Rates 2023

Effective Jan. 1, 2023

January 2023

Please click on the icon below to download/view the 2023 Indiana County Tax Rates.

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2023 Standard Mileage Rates for Business, Medical and Moving Announced

IR-2022-234, December 29, 2022

WASHINGTON — The Internal Revenue Service today issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 65.5 cents per mile driven for business use, up 3 cents from the midyear increase setting the rate for the second half of 2022.
• 22 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, consistent with the increased midyear rate set for the second half of 2022.
• 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2022.

These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.

The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. Taxpayers also cannot claim a deduction for moving expenses, unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station. For more details see Moving Expenses for Members of the Armed Forces.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Taxpayers can use the standard mileage rate but generally must opt to use it in the first year the car is available for business use. Then, in later years, they can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen.

Notice 2023-03contains the optional 2023 standard mileage rates, as well as the maximum automobile cost used to calculate the allowance under a fixed and variable rate (FAVR) plan. In addition, the notice provides the maximum fair market value of employer-provided automobiles first made available to employees for personal use in calendar year 2023 for which employers may use the fleet-average valuation rule in or the vehicle cents-per-mile valuation rule.

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Individual Tax Organizer with Schedule C

Below, you'll find a download for the Schedule C form. Click the icon to open the document.

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Tangible Property

The IRS has issued final regulations regarding whether or when taxpayers must capitalize expenses related to the acquisition, production, or improvements of tangible assets. These regulations are effective as of January 1, 2014. The regulations include clarification of the following items: materials and supplies, repairs and maintenance, and amounts paid to acquire, produce, or improve tangible property.

Materials and supplies

Materials and supplies are generally defined as tangible property that are used or consumed in operations, are not classified as inventory, and that either have a cost of $200 or less or a useful life of 12 months or less. Items determined to be materials and supplies are deductible in the year paid. A taxpayer may elect to substitute their own capitalization threshold on an annual basis. This election is called the de minimis election. In order to make the election the taxpayer will need to have a capitalization policy in place for the year stating their threshold amount. The maximum threshold is $500 per invoice for taxpayers who do not have an audited financial statement. A taxpayer with an audited financial statement may choose to expense materials and supplies up to a maximum threshold of $5,000 per invoice.

On the other side, taxpayers may choose to elect to capitalize the costs of rotable spare parts, temporary spare parts, or stand-by emergency spare parts. The election to capitalize must be made on a timely filed tax return, including extensions, for the year the part is placed in service. The election is revocable only through a favorable private Letter Ruling from the IRS.

Repairs and maintenance

The general rule for routine maintenance is that the cost may be expensed and does not need to be capitalized. The regulations include a routine maintenance safe harbor rule that states than an amount paid may be deducted if it is for recurring activities performed to keep a unit of property in efficient operating condition. An activity is deemed routine if the taxpayer reasonably expects to perform the activity more than once during the class life of the property.

In terms of maintenance for buildings, the activity will only be deemed routine if the taxpayer reasonably expects to perform said activity more than once during a 10 year period beginning when the structure is placed in service.

For maintenance of property other than buildings, the activities are expected to be performed at any time during the useful life of the property. Examples of routine maintenance include the inspection, cleaning, or testing of the structure or building system and replacement of worn or damaged parts.

Taxpayers may elect to capitalize repairs and maintenance on an annual basis by attaching a statement to a timely filed Federal tax return.

Amounts paid to acquire or produce property

In general, taxpayers must capitalize amounts paid to acquire or produce a unit of real or personal property, which include leasehold improvements, buildings, machinery, equipment, furniture, fixtures, land, and land improvements. Costs paid to facilitate the acquisition of the property and costs for work performed prior to the date the property is placed in service also must be capitalized. Basically, any amount paid towards purchasing a piece of property that you ultimately do acquire must be included in the basis of the property and, therefore, be capitalized.

Amounts paid to improve a unit of property

In general, taxpayers must capitalize amounts paid for improvements made to a unit of property that they own. Improvements include betterments to the property, restoration of the property, and adaptation of the property to a new or different use. A unit of property includes all components that are functionally interdependent, which means that one component placed in service is dependent on the placing in service of another component. The regulations have established special rules for buildings, leased property, plant property, and improvements. Any improvements you make will be studied on a case by case basis to see if these special rules apply.

Implementing the rules

While most of the safe harbor rules and elections are implemented by filing a statement of treatment with a timely filed Federal tax return, some items are considered to be changes in accounting methods. In these cases, the taxpayer will need to file Form 3115, Application for Change in Accounting Method. For example, taxpayers who wish to implement the de minimis rules for materials and supplies will file an election statement with their Federal tax return. A taxpayer who wishes to adopt the spare parts provision of the materials and supplies regulation will need to file Form 3115.

The new regulations will have some effect on all taxpayers who own tangible property. We will assess each taxpayers situation as we are working on their information. If you have any questions, please call us at (219)662-2727.

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2022 Standard Mileage Rates for Business, Medical and Moving Announced

IR-2022-124, June 9, 2022

WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rate for the final 6 months of 2022. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes.

For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. These new rates become effective July 1, 2022. The IRS provided legal guidance on the new rates in Announcement 2022-13, issued today.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2022. The IRS normally updates the mileage rates once a year in the fall for the next calendar year. For travel from January 1 through June 30, 2022, taxpayers should use the rates set forth in Notice 2022-03.

"The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices," said IRS Commissioner Chuck Rettig. "We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate.”

While fuel costs are a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

The 14 cents per mile rate for charitable organizations remains unchanged as it is set by statute.

Midyear increases in the optional mileage rates are rare, the last time the IRS made such an increase was in 2011.

Webpage Location: https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022