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┌───────────────────────────────────────┐
│ UPDATE INFORMATION--CHANGES IN RECENT │
│ QUARTERLY RELEASES OF THIS PROGRAM: │
│ │
│ (Numbers in brackets indicate YEAR/QTR│
│ when update or new feature was added)│
└───────────────────────────────────────┘
@IF990xx] IT'S HERE (WITH MORE TO COME)....!!! IN THIS
@IF990xx] RELEASE OF THIS PROGRAM: "INTELLIGENT" TEXT
@IF990xx] FILES, THAT NOT ONLY EXPLAIN THE LAW TO YOU, BUT
@IF990xx] HOW AND WHETHER IT APPLIES TO YOUR FIRM, BASED ON
@IF990xx] THE FACTS YOU HAVE ENTERED ABOUT YOUR BUSINESS....
@IF990xx] YOU'LL NOTICE A NUMBER OF SUCH "INTELLIGENT" FILES
@IF990xx] IN THIS RELEASE, IN ABOUT 70% OF THE PROGRAM'S TEXT
@IF990xx] FILES. WE WILL HAVE COMPLETED OUR CONVERSION TO SUCH
@IF990xx] FILES BY OUR NEXT QUARTERLY RELEASE, IN VERSION
@IF990xx] 94.1, AVAILABLE FOR THE FIRST QUARTER OF 1994 ....
@IF990xx]
@IF990xx] DON'T MISS IT...!
PENDING CLINTON TAX CHANGE PROPOSALS:
─────────────────────────────────────
As this Version 93.4 of the program is released on
September 30, 1993, the massive new Clinton tax bill has,
recently passed (just barely) in both the House and
Senate last month. This new version of the program
has been fully updated throughout, for the new tax laws
that are in effect already in 1993. (We have also re-
vised the 1993 tax calculation module, and it now re-
flects the new individual and corporate tax laws and
federal estate tax rate changes in the Clinton tax
bill.) Certain changes that do not go into effect un-
til 1994 will be included in the first quarter 1994
update (Version 94.1) of the program.
FEDERAL LAW CHANGES IN THIS RELEASE:
────────────────────────────────────
. INDIVIDUAL TAX RATES INCREASED. The new tax bill has
increased personal income tax rates, which formerly
topped out at 31%, to 36% on income over $140,000
($115,000 for single filing status), and to 39.6% on
taxable income over $250,000. In addition, the alter-
native minimum tax rate, formerly 24%, was raised to
26% on the first $175,000, and 28% on the excess. All
of these rate increases are RETROACTIVE [!!!] to January
1, 1993. [93/3]
. CORPORATE TAX RATES INCREASED. The new Clinton tax
bill increased the corporate tax rate to 35% (from 34%),
but only on taxable income over $10 million. There is
also a new 38% bracket between $15 million and $18.333
million for corporations. In addition, the 28% tax
rates for the corporate personal holding company tax
and accumulated earnings tax have both been raised to
39.6%. Like the individual tax increases, these new
rates are RETROACTIVE to January 1, 1993. [93/3]
. ESTIMATED TAX REQUIREMENTS FOR INDIVIDUALS SIMPLIFIED.
Starting in 1994, high-income individuals have a new,
simpler "safe harbor" rule to follow, to avoid under-
payment penalties for estimated taxes. For 1994 and
subsequent years, a taxpayer with over $150,000 of
"adjusted gross income" during the previous year may
base estimated tax payments in the current year on
110% of the prior year's tax, or 90% of the current
year's tax, whichever is less. [93/3]
. BUSINESSES MAY NOW AMORTIZE "GOODWILL" AND MOST OTHER
INTANGIBLE ASSETS. Assets of an acquired business,
such as "goodwill" or "going concern value," which were
formerly non-deductible, may now be amortized (deducted)
over a 15-year period, generally, which will considerably
reduce the after-tax cost of acquiring a business. [93/3]
. BUSINESSES MAY NOW EXPENSE UP TO $17,500 OF EQUIPMENT.
Under prior law, a business could generally expense up to
$10,000 a year of purchases of business equipment, furni-
ture, and machinery. Starting in 1993, this is increased
to $17,500. [93/3]
. NEW CAPITAL GAINS INCENTIVE FOR INVESTING IN STOCK OF
SMALL BUSINESSES. The new law provides that, if an in-
vestor buys stock of a "qualified small businesses" and
holds it for 5 years or more, up to half of the capital
gain on the sale can be excluded from taxable income.
[93/3]
. BUSINESS MEAL AND ENTERTAINMENT EXPENSES ONLY 50% DEDUC-
TIBLE AFTER 1993. Starting in 1994, taxpayers may only
deduct 50% of the cost of business meals and entertainment
expenses. Currently, such items are 80% deductible, and
were 100% deductible until a few years ago. This is not
good news for the restaurant business, at least for those
restaurants that depend on expense account customers. In
addition, NO deduction is allowed for club dues after
1993 (such as for business, athletic, social, luncheon
and sporting clubs). [93/3]
. NEW TAX LAW AUTHORIZES "EMPOWERMENT ZONES" AND "ENTER-
PRISE COMMUNITIES. Borrowing an idea that many states
have already adopted, the federal tax law will now provide
special tax incentives for businesses with operations in
some 9 "empowerment zones" and 95 "enterprise communities"
to be designated in 1994 and 1995, as well as accelerated
depreciation and a 20% employment tax credit on some 342
Indian reservations. [93/3]
. NO PENSION CONTRIBUTIONS ON EARNINGS ABOVE $150,000. In
1993, a pension or profit sharing plan can base its allo-
cations of contributions on an employee's earnings up to
$235,840 a year. Starting in 1994, the maximum salary or
earnings that can be taken into account will be limited
to $150,000. This will mean that nearly all pension and
profit sharing plans will need to be amended (again!) to
comply with the change in the law. See your benefit
consultant immediately. [93/3]
. NEW TAX DEDUCTIONS AND CREDITS FOR CLEAN FUEL VEHICLES.
Coverage has been added regarding the new deductions
for clean-fuel vehicles and the new tax credit for
electric vehicles, both of which tax incentives are
in effect after June 30, 1993. [93/3]
. NEW FEDERAL FAMILY LEAVE LAW ADDED. We've added a
discussion of the key provisions of the new Family
Leave bill that became effective on August 5, 1993.
This new law applies to all employers (including non-
profit organizations) with 50 or more employees in a
75-mile radius of their headquarters. [93/3]
. OFFICE-IN-THE-HOME DEDUCTION RESTRICTED. Updated to
reflect the new (1993) U.S. Supreme Court Decision
(Soliman case) that limits home office deduction
for certain type of businesses conducted mostly out-
side of the home. [93/2]
. UPDATED 1993 TAX MODULE. This release includes a re-
vised 1993 income and estate tax planning module, as
well as the 1992 module, either of which is selectable
from the Main Menu of the program. [The 1993 tax mod-
ule is now updated for the new 1993 tax rates, brackets,
and other tax changes, as amended by the 1993 Deficit
Reduction legislation, as well as for changes in the
estate tax brackets under the new law.] [93/3]
. NEW ADA CHECKLIST COMMAND ADDED. A new menu selection
("DISAB") has been added onto the CHECKLISTS submenu
of the program, which displays an extensive checklist
that an employer should fill out, when interviewing a
disabled person, in order to help make sure that there
are no violations of the Americans with Disabilities
Act in the hiring process with regard to that person.
[93/1]
. NEW FEDERAL EMPLOYMENT TAX DEPOSIT RULES. The segment
on withholding taxes now includes a discussion of the
new (1993) and simplified federal income tax and FICA
tax deposit requirements. [93/1]
. NEW INFORMATION ON AIR QUALITY OPERATING PERMITS. This
new text segment (see EPA menu selection, or use index)
provides highly useful and current information about
whether your business needs to obtain EPA or state air
quality operating permits, under recent Clean Air Act
regulations issued by EPA in 1992. [93/2]
. INCREASE IN CORPORATE ESTIMATED TAX REQUIRED PAYMENTS.
Updated to reflect January, 1992 amendments (and FUR-
THER amendments in February and July and yet again
in late '92 and in August '93) to the corporate esti-
mated tax rules, which now require an increase in the
percentage of current year estimated tax, in general,
that must be paid in by corporations to avoid penalty,
for years 1992-1996. Prior to 1992, corporations were
generally required to pay in 90% of the current year's
tax as estimated tax payments. However, during the
next few years (1992-1996), the percentage to be is
paid in as estimated tax is increased as follows:
. Tax years beginning in 1992
(but before July 1, 1992) -- 93%
. Tax years beginning on or
after July 1, 1992 -- 97%
. Tax years after 1996 -- 90% (In theory)
(The initial revisions, which you may have heard
about, would have phased-in the increases, but
Congress changed that law, to the above schedule,
within a couple of months of its passage, then
changed it twice more in July and November. Things
change faster and faster....) [93/1]
. AMERICANS WITH DISABILITIES ACT. A new section has
been added regarding the sweeping new requirements of
this new legislation, passed in 1990, which is going
into effect, in stages, in 1992 through 1994. [93/1]
. PENSION AND PROFIT SHARING PLANS. We have also added
to the program a wide-ranging discussion of various
types of pension and profit sharing plans, their pros
and cons, etc. Everything from 401K's to "target
benefit plans." (More than you ever really wanted to
know about retirement plans, but were too gunshy about
lawyers' fees to ask, in short.) [93/1]
. ENVIRONMENTAL LAWS. This is one of the biggest con-
cerns affecting businesses now, especially since the
recent passage of the massive amendments to the Clean
Air Act, which will impact virtually every small busi-
ness with a whole new layer of complex regulations
in the near future. Forewarned is forearmed, so we
think you will find this information EXTREMELY valu-
able, particularly if you have been blissfully unaware
of what has already become law in this area, and what
is coming. If you intend to stay in business in the
'Nineties, you MUST be aware of penalties, up to
$25,000 A DAY, for violating environmental laws and
regulations, and how to steer clear of same. (How to
do your part to take care of the environment, and how
to file for bankruptcy if you don't.) This area of
business regulation is becoming so important that we
have now created a new menu item, on the "LEGAL
MATTERS" submenu, the "EPA" command, for quickly ac-
cessing this important environmental law information.
[93/1]
. FOREIGN DIRECT INVESTMENT REPORTING. We are now cover-
ing new federal laws requiring reporting of foreign-
owned investments in U.S. businesses and real estate,
what forms to file, and how those new rules may apply
to you in unexpected situations, in these times of
growing global business transactions (not to mention
raging xenophobia). [93/1]
. LIMITED LIABILITY COMPANIES. It walks like a duck, it
talks like a duck, but it's taxed like a goose. What
is it? It's not a corporation, it's not a partnership,
and it is definitely not a sole proprietorship....What
the heck is this new thing? It's called a "limited
liability company," an interesting, and potentially
useful new type of business entity that you can now
set up, under the laws of eighteen states (and more
to come). And the IRS has ruled that such entities
are generally taxable as partnerships, not as corpor-
ations. Expanded information on this new kind of
legal entity, now adopted as a sort of "hybrid" of a
corporation and a partnership, in a majority of the
states, has been added to this version of the program.
[93/1]
. VACCINE EXCISE TAX TERMINATED. The federal excise tax
on vaccine manufacturers has terminated, as of the end
of 1992. For details, see the "EXCISE TAX" selection
on the "TAX INFO" menu. [93/1]
STATE LAW CHANGES:
──────────────────
. SALES TAX COVERAGE EXPANDED. Greatly expanded, more
detailed coverage of state sales tax laws, including
registration, local taxes, taxable categories, and
major exemptions from sales tax (for most states).
. GASOLINE TAX RATES ADDED. Coverage has been expanded
to include state gasoline rates for all 50 states and
the District of Columbia as of mid-1993. [93/2]
. ALABAMA ADOPTS "LIMITED LIABILITY COMPANY" LAW. Effec-
tive October 1, 1993, Alabama law will authorize the
creation of "limited liability companies," which are
neither corporations nor partnerships. Alabama joins
some 34 other states which have enacted such laws
authorizing formation of limited liability companies.
[93/2]
. ARIZONA DIVIDEND RECEIVED DEDUCTION UPDATED. Updated
to reflect new Arizona state tax regulation that became
effective on June 1, 1993. [93/3]
. ARIZONA LIMITED LIABILITY COMPANY LAW. Added coverage
of "LLC" law enacted by Arizona. [93/1]
. ARIZONA SALES TAXES. Coverage of the Arizona sales
and use tax law has been expanded. [93/1]
. ARKANSAS LIMITED LIABILITY COMPANY LAW. Arkansas has
adopted LLC provisions, effective 4-12-1993. [93/2]
. ARKANSAS SALES TAX EXPANSION. More detailed discussion
of Arkansas sales and use tax laws, including recent
expansion of sales tax (gross receipts tax) to cover
a number of different kinds of service businesses.
[93/1]
. CALIFORNIA -- 1/2% SALES TAX EXTENDED. Updated to re-
flect extension of 1/2% state sales tax, which was
scheduled to expire 7-1-93, to 1-1-94. [93/3]
. CALIFORNIA -- EMPLOYERS MUST REPORT NEW HIRES. Effec-
tive April 1, 1993, certain California employers must
report all new hires (or rehires) to the state Employ-
ment Development Department within 30 days, on a new
reporting form. Big Brother is watching, and he wants
you to help him.... [93/2]
. CALIFORNIA. Effective in 1994, most small employers
in California (25 employees or less) will be eligible
for a state income or franchise tax credit of up to
the greater of $25 a month per employee or 25% of the
amount paid for employee health care coverage. (This
credit was to have gone into effect in 1992, but was
delayed until 1993, and now has been delayed for yet
another year by the California Legislature.) [93/1]
. CALIFORNIA. Updated to reflect 1992 indexing of
California tax brackets for personal income tax,
which were released in September, 1992 by the
California Franchise Tax Board. [93/1]
. CALIFORNIA SDI RATE INCREASED FOR 1993. Updated for
increase in State Disability Insurance (tax) rate
calendar year 1993, from 1.25% to 1.30%. [93/1]
. CALIFORNIA'S TOUGHER NEW ESTIMATED TAX PAYMENT RULES.
Covers new estimated tax rules, effective 1-1-1993,
that now limit the ability of individual taxpayers to
avoid underpayment penalty by merely making estimated
tax payments equal to 100% of their prior year's tax
liability, for certain high-income taxpayers whose
income increases by more than $40,000 from the prior
year. Also updates increase in amount of estimated
franchise tax for corporations, from 90% to 95%, that
went into effect in 1993. [93/1]
. CALIFORNIA CIGARETTE TAX INCREASE. Updated to reflect
increase in California cigarette tax to 37 cents a
pack in 1994. [93/4]
. COLORADO LIMITED LIABILITY COMPANY LAW. Added cover-
age of "LLC" law enacted by Colorado. [93/1]
. COLORADO WITHHOLDING OF TAX ON SALE OF REAL ESTATE.
Added new section on new (1993) law requiring
persons selling real estate to nonresidents of
Colorado to withhold income tax. [93/1]
. CONNECTICUT SALES TAX. The Connecticut sales tax was
reduced from 8% to 6%, effective October 1, 1991. At
the same time, motor fuel tax rates were increased
from 23 cents to 25 cents a gallon as of 9-1-91, 26
cents on 1-1-92, 28 cents on 1-1-93, 29 cents on
7-1-93, 30 cents on 1-1-94, 31 cents on 7-1-94,
32 cents on 1-1-95, 33 cents on 7-1-95, and to 34
cents a gallon on 1-1-96. [92/4]
. CONNECTICUT ADOPTS "LIMITED LIABILITY COMPANY" LAW.
Effective October 1, 1993, Connecticut law will auth-
orize the creation of "limited liability companies,"
which are neither corporations nor partnerships.
Connecticut joins 34 other states which have enacted
such laws authorizing formation of limited liability
companies. [93/3]
. DELAWARE LIMITED LIABILITY COMPANY LAW. Added cover-
age of "LLC" law recently enacted by Delaware. [93/1]
. FLORIDA LIMITED LIABILITY COMPANY LAW. Added cover-
age of "LLC" law enacted by Florida. [93/1]
. FLORIDA WORKERS' COMPENSATION LAW UPDATED. We have
updated the coverage requirements under the Florida
workers' compensation law to reflect recent legislat-
ive changes. [93/1]
. GEORGIA ADOPTS "LIMITED LIABILITY COMPANY" LAW. Effec-
tive March 1, 1994, Georgia law will authorize the
creation of "limited liability companies," which are
neither corporations nor partnerships. Thus, Georgia
joins 34 other states which have enacted such laws
authorizing formation of limited liability companies.
[93/2]
. HAWAII UNEMPLOYMENT TAX CHANGES. For calendar year
1992 and in subsequent years, the "new employer"
state unemployment tax rate (1.70% in 1993) is the
same as the contribution rate assigned to employers
with a .0000 reserve ratio. (The rate was 3.1% for
new employers in 1991.) The wage base for Hawaii
unemployment tax has been increased to $23,900 in
1993 (from $7,000 in 1991), however, so that the
maximum tax for a given employee has increased from
$217 in 1991 to as much as $406.30 in 1993. [93/1]
. IDAHO REQUIRES EMPLOYERS TO OBTAIN ACCOUNT NUMBER.
Beginning July 1, 1993, Idaho employers are required
to register with the Idaho Tax Commission and obtain
a employer's withholding account number. Formerly,
there was no such registration requirement. [93/2]
. IDAHO ADOPTS "LIMITED LIABILITY COMPANY" LAW. Effec-
tive on July 1, 1993, Idaho law will authorize the
creation of "limited liability companies," which are
neither corporations nor partnerships. Idaho joins
some 34 other states which have enacted such laws
authorizing formation of limited liability companies.
[93/2]
. ILLINOIS LIMITED LIABILITY COMPANY LAW. Added cover-
age of "LLC" law enacted by Illinois. [93/1]
. ILLINOIS SALES TAX. Expanded information is now now
provided on the Illinois sales and use taxes. [93/1]
. IOWA LIMITED LIABILITY COMPANY LAW. Added cover-
age of "LLC" law enacted by Iowa. [93/1]
. IOWA TAX BRACKETS ANNOUNCED FOR 1993. Revised to
reflect new maximum tax bracket for Iowa individual
income tax in 1993. [93/1]
. KANSAS LIMITED LIABILITY COMPANY LAW. Added cover-
age of the "LLC" law enacted by Kansas. [93/1]
. MAINE SALES TAX. Updated to reflect fact that the
drop in sales tax rate from 6% to 5%, which was to
go into effect on 7-1-93, did not occur. [93/3]
. MARYLAND LIMITED LIABILITY COMPANY LAW. Added cover-
age of the "LLC" law enacted by Maryland. [93/1]
. MASSACHUSETTS TAX AMNESTY. Massachusetts has enacted
a limited tax amnesty for use tax and individual and
corporate income taxes owed by nonresidents and certain
foreign corporations. A special 3-month filing period
under the amnesty will be announced for some time in
the 12 month period beginning July 1, 1993. [93/3]
. MICHIGAN ADOPTS "LIMITED LIABILITY COMPANY" LAW. Ef-
fective June 1, 1993, Michigan law will authorize the
creation of "limited liability companies," which are
neither corporations nor partnerships. Michigan joins
some 34 other states which have enacted such laws
authorizing formation of limited liability companies.
[93/2]
. MINNESOTA LIMITED LIABILITY COMPANY LAW. Added cover-
age of "LLC" law recently enacted by Minnesota. [93/1]
. MISSOURI ADOPTS "LIMITED LIABILITY COMPANY" LAW.
Effective December 1, 1993, Missouri law will authorize
the creation of "limited liability companies," which are
neither corporations nor partnerships. Missouri will
join 34 other states which have enacted such laws
authorizing formation of limited liability companies.
[93/3]
. MISSOURI ENACTS PASSES CORPORATE INCOME TAX INCREASE.
Corporate tax rates in Missouri will jump from 5% to
6.25% on September 1, 1993, under recently enacted tax
legislation just signed into law by the Governor of
Missouri. [93/3]
. MONTANA TAX RATES CHANGED FOR 1993. Montana has re-
duced its tax rate for individuals from a former max-
imum tax bracket of 11%, to a new flat tax of 6.7% of
taxable income, which is now computed without item-
ized deductions or personal exemptions. The corporate
tax rate for 1993 has been changed to 7.08% on the
first $500,000 of taxable income, and 7.57% on the ex-
cess, dropping back to 6.75% and 7.25%, respectively,
in 1994 and thereafter. The corporation minimum tax
is increased from $50 to $100, starting in 1993.
[93/2]
. MONTANA ADOPTS "LIMITED LIABILITY COMPANY" LAW. Effec-
tive October 1, 1993, Montana law will authorize the
creation of "limited liability companies," which are
neither corporations nor partnerships. Montana joins
some 34 other states which have enacted such laws
authorizing formation of limited liability companies.
[93/2]
. MONTANA SALES TAX PROPOSED. On June 8, 1993, Montana
voters will decide whether to adopt a Montana sales
tax, at the rate of 4%. If Referendum 111 is approved,
the income tax brackets, which currently range from
2% to as high as 11%, would be replaced by a flat 6%
income tax rate. [93/2]
. NEBRASKA ADOPTS "LIMITED LIABILITY COMPANY" LAW. Ef-
fective September 9, 1993, North Dakota law will auth-
orize creation of "limited liability companies," which
are neither corporations nor partnerships. North
Dakota joins some 34 other states which have enacted
such laws authorizing formation of limited liability
companies. [93/3]
. NEVADA LIMITED LIABILITY COMPANY LAW. Added cover-
age of "LLC" law enacted by Nevada. [93/1]
. NEW HAMPSHIRE ADOPTS "LIMITED LIABILITY COMPANY" LAW.
Effective July 1, 1993, New Hampshire law will author-
ize the creation of "limited liability companies,"
which are neither corporations nor partnerships. New
Hampshire joins 34 other states which have enacted
such laws authorizing formation of limited liability
companies. [93/3]
. NEW HAMPSHIRE ENACTS "BUSINESS ENTERPRISE TAX." As
of July 1, 1993, New Hampshire has enacted a new tax
on most business enterprises of 0.25% of the applicable
tax base (consisting of total dividends, interest and
compensation paid or, in some cases, accrued, by the
enterprise during the taxble period. At the same time,
the Business Profits tax of 8% has been reduced to 7.5%
for fiscal 1994 and 7% the year after. [93/3]
. NEW JERSEY ADOPTS "LIMITED LIABILITY COMPANY" LAW.
Effective December 27, 1993, New Jersey law will auth-
orize the creation of "limited liability companies,"
which are neither corporations nor partnerships. New
Jersey joins 34 other states which have enacted such
laws authorizing formation of limited liability compan-
ies. [93/3]
. NEW JERSEY MANDATORY DISABILITY LAW. Added coverage
of New Jersey law requiring employers to provide disa-
bility insurance coverage for their employees. [93/1]
. NEW MEXICO ADOPTS "LIMITED LIABILITY COMPANY" LAW.
Effective June 18, 1993, New Mexico law authorizes
the creation of "limited liability companies," which
are neither corporations nor partnerships. New Mexico
joins some 34 other states which have enacted such
laws authorizing formation of limited liability compan-
ies. [93/3]
. NEW YORK MANDATORY DISABILITY LAW. Added coverage
of New York law requiring employers to provide disa-
bility insurance coverage for their employees. [93/1]
. NORTH CAROLINA COUNTY BEGINS ASSESSING PROPERTY TAX
ON INTANGIBLE PROPERTY. For the first time, in 1993,
one North Carolina has begun to exercise its power
to tax intangibles, such as patents, copyrights and
franchises. Other counties may soon follow. [93/4]
. NORTH CAROLINA MINIMUM WAGE INCREASE. Updated to
reflect scheduled increase from $3.80 an hour to
$4.25 an hour on January 1, 1993. [93/1]
. NORTH CAROLINA ADOPTS "LIMITED LIABILITY COMPANY" LAW.
Effective October 1, 1993, North Carolina law will
authorize the creation of "limited liability companies,"
which are neither corporations nor partnerships. North
Carolina joins 34 other states which have enacted such
laws authorizing formation of limited liability compan-
ies. [93/3]
. NORTH DAKOTA ADOPTS "LIMITED LIABILITY COMPANY" LAW.
Effective July 1, 1993, North Dakota law will authorize
the creation of "limited liability companies," which are
neither corporations nor partnerships. North Dakota
joins 34 other states which have enacted such laws
authorizing formation of limited liability companies.
[93/2]
. OHIO ADDS NEW PERSONAL INCOME TAX BRACKET. Updated
to reflect new 7.5% maximum tax rate under Ohio per-
sonal income tax, starting in 1993. [93/1]
. OHIO EXPANDS SALES TAX TO SERVICES. Updated to reflect
new sales tax law, effective January 1, 1993, which
extends the sales tax to various specified services.
[93/1]
. OKLAHOMA LIMITED LIABILITY COMPANY LAW. Added cover-
age of "LLC" law recently enacted by Oklahoma. [93/1]
. OKLAHOMA SALES TAXES. Coverage of the Oklahoma sales
and use tax law has been expanded. [93/1]
. OREGON ADOPTS "LIMITED LIABILITY COMPANY" LAW. Effec-
tive January 1, 1994, Oregon law will authorize the
creation of "limited liability companies," which are
neither corporations nor partnerships. Oregon joins
some 34 other states which have enacted such laws
authorizing formation of limited liability companies.
[93/3]
. RHODE ISLAND CORPORATION SURTAX (INCOME TAX) TO EXPIRE
EARLIER. The 11% state corporation income tax surtax
that was scheduled to expire after 1996 is now sched-
uled to expire at the end of 1993. [93/3]
. RHODE ISLAND LIMITED LIABILITY COMPANY LAW. Added
coverage of "LLC" law recently enacted by Rhode
Island. [93/1]
. RHODE ISLAND MANDATORY DISABILITY LAW. Added coverage
of Rhode Island law requiring employers to provide disa-
bility insurance coverage for their employees. [93/1]
. RHODE ISLAND INCREASES INCOME TAX ON HIGHER-INCOME
TAXPAYERS. The state income tax, equal to 27.5% of
federal income tax liability, is "temporarily" in-
creased, on federal tax liability in excess of
$15,000, to 29.75% in 1992 and to 32% in 1993. Also,
the 11% business corporation surtax on income, sched-
uled to expire in 1993, has been extended to January
1, 1997. [92/4]
. SOUTH CAROLINA TAX BRACKET INDEXING FOR 1993. Updated
to reflect increase in the income level at which the
top state personal income tax bracket begins, in-
creased from $10,600 in 1992 to $10,800 in 1993.
[93/1]
. SOUTH DAKOTA ADOPTS "LIMITED LIABILITY COMPANY" LAW.
Effective July 1, 1993, South Dakota law will authorize
the creation of "limited liability companies," which are
neither corporations nor partnerships. South Dakota
joins 34 other states which have enacted such laws
authorizing formation of limited liability companies.
[93/2]
. TEXAS LIMITED LIABILITY COMPANY LAW. Added cover-
age of "LLC" law enacted by Texas. [93/1]
. UTAH SALES TAXES. Coverage of the Utah sales and use
tax law has been expanded. [93/2]
. UTAH LIMITED LIABILITY COMPANY LAW. Added cover-
age of "LLC" law enacted by Utah. [93/1]
. VERMONT SALES TAX GOES BACK TO 5% ON SEPTEMBER 1, 1993.
The Vermont sales tax, which dropped back to 4% on July
1, 1993, has been "temporarily" increased to 5% again,
until July 1, 1995. [93/3]
. VIRGINIA LIMITED LIABILITY COMPANY LAW. Added cover-
age of "LLC" law enacted by Virginia. [93/1]
. WASHINGTON STATE MINIMUM WAGE INCREASE. The state
minimum wage in Washington is slated to increase to
$4.90 an hour after 1993. [93/2]
. WEST VIRGINIA LIMITED LIABILITY COMPANY LAW. Added
coverage of "LLC" law enacted by West Virginia. [93/1]
. WYOMING SALES TAX INCREASED TO 4%. Effective 7-1-1993,
the Wyoming sales tax rate is temporarily increased
from 3% to 4%, except on certain farm implements. [93/2]
OTHER CHANGES AND ADDITIONS IN RECENT QUARTERLY RELEASES:
────────────────────────────────────────────────────────
. NEW SEGMENT ADDED ON SELECTING PROFESSIONAL ADVISERS.
This new text segment (see various items for Attorneys,
Accountants, Benefit Consultants, etc. in index) pro-
vides helpful tips on how to go about finding and how
to use various professional advisers, as well as
where to find free or inexpensive sources of help and
information through SBA offices, SCORE and SBDC's,
among others. [93/3]
. TELEPHONE HOTLINES. Updated various telephone numbers
of government agencies, many of which have changed or
been disconnected in recent months. Also added
Justice Department information line number for in-
formation on the Americans with Disabilities Act.
[93/1]
. THIS UPDATE FILE has been added, a useful feature for
users which we will continue to provide with each new
quarterly update in the future.
. BUILT-IN ORDER FORM. In addition, we have built in a
feature that now allows you to print out the order
form to send to us (with $$ enclosed), if you want to
order an update or program upgrade, or the companion
book that we sell here and in bookstores, STARTING &
OPERATING A BUSINESS IN @STATE.
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NOTE: Things change....Rapidly.
─────────────────────────────────────────────────────────────
The above are changes made in the last 4 quarterly updates,
not including earlier revisions. Thus, if you have an ear-
lier version of the program issued more than 3 months ago,
there are a great many update changes since then that are
NOT listed above, since those have long since been incor-
porated into the program, and, from our point of view, are
now ancient history.
─────────────────────────────────────────────────────────────
┌─────────────────────────────────────────────────────┐
│AS YOU WILL NOTE FROM THE FOREGOING CHANGES, THE LAWS│
│AFFECTING BUSINESS TEND TO CHANGE VERY RAPIDLY, AND│
│THIS PROGRAM IS REVISED ON ALMOST A DAILY BASIS TO│
│KEEP UP WITH THE FLOOD OF TAX AND LEGAL CHANGES THAT│
│OCCUR. ACCORDINGLY, IF THIS PROGRAM IS MORE THAN A│
│YEAR OLD, A LARGE PORTION OF THE INFORMATION IN IT│
│IS LIKELY TO BE DANGEROUSLY OUT-OF-DATE. WE ISSUE UP-│
│DATES OF THE PROGRAM EVERY 3 MONTHS AT A VERY REASON-│
│ABLE PRICE. TRY US. │
└─────────────────────────────────────────────────────┘
AND COMING ENHANCEMENTS AND ATTRACTIONS NOW IN THE WORKS...
───────────────────────────────────────────────────────────
We are constantly expanding and updating the subject mat-
ter and coverage of this program, as well as adding new
features. Here is a partial list of items we are resear-
ching (and translating into plain English!) now, for
inclusion in upcoming quarterly releases of the program:
. AUTOMOBILE EXPENSES. A new segment will be added on
taking deductions for automobile and travel & enter-
tainment expenses.
. ARE YOU READY TO START A BUSINESS? A new segment is
to be added on characteristics of successful entrepre-
neurs, and factors you should consider before you
start a business.
. SHOULD YOU HIRE EMPLOYEES? A new feature, which will
suggest a few things you need to consider before you
hire your first employee.
OTHER PLANNED FEATURES....
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We also add new features to the program from time to time,
and will be adding any of a number of other modules we are
considering right now, at some time during the following
3 or 4 quarterly updates.
┌─────────────────────────────────────────┐
│ OUR FAVORITE QUOTE FOR THIS QUARTER: │
│"Some towns may be too small to support │
│ a lawyer, but no town was ever too small│
│ to support TWO lawyers." │
│ -- Old American Proverb │
└─────────────────────────────────────────┘
