Local adviser gives advice on handling your returns
MIKE STAUGAITIS/Staff Photo The Brush Valley Chamber of Commerce held its monthly luncheon for January at Hollywood Pizza on Oak Street in Mount Carmel Tuesday afternoon. Lamont Masser of H&R Block in Shamokin was the guest speaker for the luncheon which was sponsored by Family Home Medical of Mount Carmel. Pictured, from left, are Chamber Director Sandy Winhofer; Masser; Warren Altomare, owner Family Home Medical; Brenda Reiner, office manager of H&R Block of Shamokin; Kathleen Hoffman, administrator, Family Home Medical, and Ed Stellar, owner and operator of Hollywood Pizza.
MOUNT CARMEL - Tax season was the subject of discussion at Tuesday's meeting of the Brush Valley Regional Chamber of Commerce.
Lamont Masser, a senior tax adviser with H&R Block, addressed the group, which held its monthly meeting this month at Hollywood Pizza and Bakery, Oak Street.
Masser said he started preparing tax returns 21 years ago. Today, he and his brother operate seven H&R Block locations in Northumberland, Dauphin and Montour counties.
He said the big local tax issue is Act 32, a law that streamlines and standardizes the local earned income tax system. Act 32 reduces Pennsylvania's number of Earned Income Tax (EIT) collectors from 560 to 21.
Under Act 32, employers are required to withhold the higher of the employee's local tax where they live versus the rate of tax where they are employed.
Another local issue is the Business Privilege and/or Mercantile Tax, which is based on the gross receipts - not the profits - of businesses in an area. Businesses located in or doing work in Shamokin Area School District are subject to this tax.
Rentals are also subject to this tax. Many people are unaware of this and there has not been a great deal of enforcement action to date on this tax, but the penalties can be steep for those who get caught, Masser said.
One issue that overlaps state and federal taxes is the credit reduction on FUTA, or 940 returns.
"Essentially, because Pennsylvania has borrowed money from the feds to provide unemployment benefits, the feds are imposing an additional retroactive tax to collect back some of these loans," Masser. "Don't be surprised if you end up owing a balance due on your 940 FUTA return. It can amount to up to $21 per employee." The federal government will announce each November which states employers will have the extra tax.
Federal issues include those involving health care reform and the payroll tax holiday, which was extended with great debate by Congress at the end of 2011. It expires again on Feb. 29, Masser noted, and unless Congress extends the tax cut through the rest of 2012, the employees' portion of Social Security contributions will return to the 2010 amount of 6.2 percent of wages. This would mean almost a $1,000 decrease in take-home pay for someone earning $50,000 over the full year.
Masser also encouraged businesses and homeowners to check eligibility for tax credits related to the flooding from last year.
And he noted that the tax deadline is April 17 this year because April 15 is a Sunday and Washington, D.C., will observe Emancipation Day on April 16. Deadlines for filing state returns are also April 17.
Tuesday's luncheon was sponsored by Family Home Medical, Mount Carmel.
The chamber, which has a "Spotlight" member each month, shined the light on itself for this meeting. Benefits of membership were reviewed; they can also be found at www.brushvalleychamber.com under the "members" tab.
The next luncheon is set for Tuesday, Feb. 21, at Harry's Grille, Shamokin. Dave Burns will speak about "Networking Your Way to Success."
To comment you must first create a profile and sign-in with a verified DISQUS account or social network ID. Sign up here.
Comments in violation of the rules will be denied, and repeat violators will be banned. Please help police the community by flagging offensive comments for our moderators to review. By posting a comment, you agree to our full terms and conditions. Click here to read terms and conditions.
Copyright ©2012 The News Item | 707 N. Rock St. | Shamokin, PA 17872 | (570) 644-6397
Privacy Policy | Opinion Posting Policy | About our ads | Questions or comments? Contact Us
