Categoría: Bookkeeping

Before choosing a lump sum payment, consider factors such as the amount of money you’ll receive, the tax implications, your financial goals, and the stability of your income and expenses. Also, weigh the potential risks and benefits of receiving a large sum of money at once versus receiving smaller, periodic payments. A lump sum payment […]

It is characterized by its one-time nature, where the entire amount is paid upfront. Lump-sum payments are commonly used in various financial contexts, including personal finance, real estate transactions, business deals, and investments. To illustrate how lump-sum and annuity payments work, imagine you won $10 million in the lottery. If you took the entire winnings […]

Before choosing a lump sum payment, consider factors such as the amount of money you’ll receive, the tax implications, your financial goals, and the stability of your income and expenses. Also, weigh the potential risks and benefits of receiving a large sum of money at once versus receiving smaller, periodic payments. A lump sum payment […]

Note that the default rate of withholding may be too low for your tax situation. You may choose to provide the payer Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions to elect to have more than 20% withheld. For example, if you are given the option to transfer your pension plan to a […]

The IRS self-employment limits for the Social Security portion for 2020 is $137,700, which is subject to of the self-employment tax. High income individuals may be assessed an additional Medicare tax equal to 0.9% of any income above the threashold amount. Use this Self-Employment Tax Calculator to estimate your tax bill or refund. This to […]

Both small and large stock dividends cause an increase in common stock and a decrease to retained earnings. This is a method of capitalizing (increasing stock) a portion of the company’s earnings (retained earnings). A small stock dividend occurs when a stock dividend distribution is less than 25% of the total outstanding shares based on […]

Both small and large stock dividends occur when a company distributes additional shares of stock to existing stockholders. Cash dividends are corporate earnings that companies pass along to their shareholders. A large stock dividend occurs when a distribution of stock to existing shareholders is greater than 25% of the total outstanding shares just before the distribution. […]

Below are some things to consider when surrendering a life insurance policy for its cash value. Surrendering a life insurance policy is another way of saying you’re canceling it. When you no longer need a life insurance policy, you can cancel or surrender the life social security insurance policy for cash value. If you need […]

This is considered as the primary document of the business which describes and authorizes the payment of the company. Vouchers can be used as manual or computerized systems as preferred by business organizations. Vouchers that companies use in accounting provide the information needed to pay liabilities, primarily those to vendors. Occasionally, errors may occur that […]