CD ROM Paradise Collection 4/CD ROM Paradise Collection 4 1995 Nov.iso/business/sba952.zip/F235.SBE

Text File | 1995-05-31 | 35KB | 736 lines

            ┌───────────────────────────────────────┐
            │ UPDATE INFORMATION--CHANGES IN RECENT │
            │ QUARTERLY RELEASES OF THIS PROGRAM:   │
            │                                       │
            │ (Numbers in brackets indicate YEAR/QTR│
            │  when update or new feature was added)│
            └───────────────────────────────────────┘


        HIGHLIGHTS OF FEDERAL DEVELOPMENTS IN THIS RELEASE:
        ───────────────────────────────────────────────────

  .  "CONTRACT WITH AMERICA TAX RELIEF ACT OF 1995" APPROVED
     BY HOUSE WAYS & MEANS COMMITTEE.  On March 14, 1995,
     the Ways & Means Committee of the United States House of
     Representatives approved a number of major tax cut pro-
     visions promised in the Republican Party's "Contract
     with America."  Full House (and Senate) approval was
     pending as we released this update.  For details on the
     proposed new tax legislation, use the "INDX" menu selec-
     tion on the Main Menu and look up the "CONTRACT WITH
     AMERICA--TAXES" item.  (Or use the "KEY" menu selection
     and enter "CONTRACT WITH AMERICA" as the phrase to be
     searched for.)  [95/2]

  .  SELF-EMPLOYED TAXPAYERS' DEDUCTION FOR A PORTION OF
     MEDICAL INSURANCE PREMIUMS PAID EXTENDED, EXPANDED.
     The 25% deduction of medical insurance premiums that
     was allowed for self-employed individuals expired
     12-31-93.  Finally, in April, 1995, just before the
     filing date for 1994 tax returns, Congress has retro-
     actively extended this deduction to 1994, and in-
     creased it to 30% in 1995.  President Clinton has
     signed the bill into law, in time for taxpayers to
     claim the deduction on their 1994 returns.  Note
     that the 1994 and 1995 tax planning/tax calculation
     module included with this program already reflects
     the new legislation and the 30% deduction percentage
     for 1995.  [95/2]

  .  IRS PROPOSED REGULATIONS MAY ALLOW EARNINGS OF SOME
     MEMBERS OF A LIMITED LIABILITY COMPANY TO ESCAPE
     SELF-EMPLOYMENT TAX.  If new a Proposed Regulation
     of the IRS goes into effect, members of a limited
     liability company ("LLC") who are not among the des-
     ignated managers of the LLC may be treated as limited
     partners for self-employment tax purposes, if certain
     conditions are met.  In that case, like limited part-
     ners in a limited partnership, they will not be sub-
     ject to federal self-employment tax on their share of
     the LLC's earnings.  NOTE:  This rule won'tt go into
     effect till the tax year AFTER the Proposed Regulation
     becomes final, however.  For details on how this rule
     may apply to an LLC, see the Self-Employment Tax
     item in this program's index ("INDX" menu item), or
     on the TAX Info Submenu ("S/E" menu item).  [95/2]

  .  FINAL FAMILY AND MEDICAL LEAVE ACT REGULATIONS NOW
     IN EFFECT.  The final regulations under the federal
     Family and Medical Leave Act of 1993 went into effect
     on April 6, 1995.  We have updated the program to
     reflect the final regulations.  [95/2]

  .  IRS RULES THAT AN LLC MAY BE CONVERTED, TAX-FREE, TO
     A LIMITED LIABILITY COMPANY.  In Rev. Rul. 95-37, the
     Internal Revenue Service recently ruled that existing
     partnerships may generally be converted into limited
     liability companies ("LLCs") without taxable gain or
     loss being recognized (generally) to any of the part-
     ners, provided that the LLC qualifies for partnership
     tax treatment, for income tax purposes.  The Revenue
     Ruling further states that it is not even necessary
     to file a short-period tax return for the partnership,
     or to obtain a new Employer I.D. number, since the LLC
     is, in effect, treated as a continuation of the old
     partnership entity.  [95/2]

  .  AUTO MILEAGE DEDUCTION INCREASED FOR 1995.  The flat
     per-mile deduction for business auto use has been in-
     creased from 29 cents to 30 cents, effective January
     1, 1995. [95/1]

  .  ADA DEFINITION OF "DISABILITY":  NEW EEOC INTERNAL
     GUIDELINES SHED LIGHT ON WHAT IT MEANS.  See the
     information in this program on the Americans with
     Disabilities Act ("ADA"), for an analysis of what
     the law means by "disability," as discussed in a
     new 56-page internal manual created by the EEOC
     for its own personnel, to be used in interpreting
     and enforcing the ADA. [95/1]

  .  CLINTON ADMINISTRATION PROPOSING EXTENSION OF THE
     ENVIRONMENTAL TAX ON CORPORATIONS.  The current admin-
     istration is proposing an extension, at least to the
     year 2000, of the federal environmental tax (of 0.12%
     on alternative taxable income of a corporation in ex-
     cess of $2 million), which is due to expire after
     1995.  [95/1]

  .  PRESIDENT SIDESTEPS CONGRESS, ISSUES EXECUTIVE ORDER
     BANNING STRIKER REPLACEMENTS.  Organized labor has
     failed on several attempts in recent years (under
     Democratically-controlled Congresses) to get a law
     enacted that would prohibit companies from hiring
     replacement workers ("scabs") during strikes.  Now
     (in March, 1995), President Clinton has attempted an
     end-run around a GOP-controlled Congress, by issuing
     an Executive Order that bans of hiring striker re-
     placements by federal contractors. [95/1]

  .  NEW 1995 TAX CALCULATION MODULE INCLUDED WITH 4TH
     QUARTER 1994 RELEASE.  Our new 1995 tax planning module,
     fully updated for 1995 tax rates and brackets and
     tax law changes (as known as of March, 1995) for
     1995, is included with Release 95.1 of this program.
     [95/1]

  .  UPDATED FOR 1995 INDIVIDUAL TAX RATE BRACKET CHANGES.
     The IRS has announced 1995 tax brackets, as indexed
     for inflation, for the individual income tax.  These
     are now reflected throughout the program. [94/4]

  .  UPDATED FOR 1995 FICA AND SELF-EMPLOYMENT TAX
     RATE BRACKET CHANGES.  The 1995 maximum earnings
     that is subject to the full 15.3% FICA or Self-
     Employment tax is $61,200, a slight increase from
     the 1994 amount, which was $60,600.  All FICA wages
     or Self-employment income above that amount is sub-
     ject only to the 2.9% Medicare portion of the social
     security tax. [94/4]

  .  MEDICARE AND SOCIAL SECURITY TAX INCREASED.  While the
     FICA and self-employment Social Security and Medicare
     tax rates remain the same in 1994, the amount of earn-
     ings on which both the Social Security (OASDI) and
     Medicare taxes apply, at a combined rate of 15.3%, in-
     creases from $60,600 in 1994 to $61,200 in 1995, the
     smallest increase in some twenty years.  Note that the
     2.9% Medicare portion of the FICA and self-employment
     taxes (1.45% each on employer and employee, or the
     full 2.9% on the self-employed), which applied to only
     the first $135,000 of income in 1993, applies to ALL
     earned income, in 1994, 1995, and subsequently.  [94/4]

  .  UPDATED WITH SAMPLE QUESTIONS FOR JOB INTERVIEWS UNDER
     ADA REGULATIONS.  Examples are given of permissible and
     illegal job interview questions under recent (May,
     1994) EEOC guidelines for disability-related inquiries.
     [94/3]

  .  UPDATED FOR JULY, 1994 IRS ANNOUNCEMENT OF 1994
     LUXURY AUTOMOBILE DEPRECIATION LIMITATIONS.  Each
     summer, the IRS releases inflation-adjusted figures
     for the limit on annual depreciation deductions for
     so-called "luxury automobiles" that are placed in
     service during the calendar year.  We have included
     the new depreciation amounts allowed for cars that
     are placed in service in 1994.  [94/3]

  .  UPDATED/ADDED INFORMATION ON EXPORTING TO MEXICO
     UNDER NAFTA.  On January 1, 1994, the 3-way NAFTA
     free trade agreement between Canada, Mexico, and the
     U.S. went into effect.  The effect on trade between
     the U.S. and Mexico has been spectacular.  In the
     first 6 months after going into effect, Mexico has
     moved ahead of Japan as the second largest market
     for U.S. exports, second only to Canada.  [94/3]

  .  UPDATED FOR NEW OSHA REGULATIONS ON PERSONAL PROTECTIVE
     EQUIPMENT.  Effective July 5, 1994, new OSHA regulations
     go into effect regarding purchase of personal protective
     equipment for employees, including written certifications
     that proper hazard assessments have been made and that
     employees needing to wear safety gear are properly
     outfitted and trained to use such equipment.  [94/3]

  .  UPDATED FOR OSHA ACCIDENT NOTIFICATION RULE CHANGES.
     On April 1, 1994, OSHA announced that injury accidents
     involving 3 (formerly 5) or more employees must be
     reported to OSHA within 8 (formerly 48) hours, along
     with additional information not previously required.
     [94/2]

  .  BILL INTRODUCED IN CONGRESS TO ALLOW STATES TO FORCE
     OUT-OF-STATE SELLERS TO COLLECT USE TAX.  A bill has
     been introduced in the Senate by Sen. Dale Bumpers of
     Arkansas, which would authorized states to require
     out-of-state sellers, such as mail order companies,
     to collect sales or use tax on sales of tangible
     property shipped into a state, at a single uniform
     statewide rate (even if the state has varying local
     rates) for each state.  Certain small sellers would
     be exempt, if unless they have either $3 million of
     total sales of such items or $100,000 of such sales
     in the particular state, in the 12 months ending in
     September of the preceding calendar year.  Couched
     as a "tax fairness" bill to "help main street
     businesses" who compete against out-of-state mail
     order firms that are not currently required to
     collect use tax or sales tax from in-state buyers,
     the proposed legislation may have a good chance of
     passing, particular since it is sponsored by
     President Clinton's Democratic colleague from
     Arkansas, a powerful member of the Senate.  We
     will keep you advised of the status of the proposed
     legislation in future updates of this program. [94/1]

  .  FTC MAIL ORDER REGULATIONS EXPANDED.  Effective March
     1, 1994, the shipping deadline requirements under
     Federal Trade Commission rules for mail order firms
     have been extended to apply to all orders a business
     receives, including those received by fax or telephone,
     not just mail orders.  [94/1]

  .  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. [94/1]


                     RECENT STATE LAW CHANGES:
                     ─────────────────────────

  .  SALES TAX COVERAGE EXPANDED.  Expanded, more detailed
     coverage of state sales tax laws for Connecticut,
     Indiana, Iowa, Kentucky, Maine, and other states, in-
     cluding registration requirements, local taxes, tax-
     able categories, and major exemptions from sales tax.

  .  STATE FAMILY LEAVE LAWS.  Coverage has been expanded
     to include family leave legislation in all 50 states
     and the District of Columbia, in addition to coverage
     of the federal Family and Medical Leave Act. [94/2]

  .  ALASKA ADOPTS "LIMITED LIABILITY COMPANY" LAW.  Effec-
     tive July 1, 1995, Alaska law authorizes the creation
     of "limited liability companies," which are neither
     corporations nor partnerships.   [94/3]

  .  ARIZONA CUTS INCOME TAX RATES.  For tax years beginning
     after December 31, 1993, the top tax rates for both the
     corporate and individual state income tax have been cut
     in Arizona, to 6.9% for individuals and 9% for corpora-
     tions.  [94/2]

  .  ARIZONA ENACTS FURTHER TAX RELIEF IN 1995.  The state
     has reduced personal income tax rates across the board,
     with the top bracket rate reduced from 6.9% in 1994 to
     5.6% in 1995 and subsequent years. [95/2]

  .  ARKANSAS MINIMUM WAGE INCREASED.  The state minimum wage
     in Arkansas increased from $4.00 an hour to $4.15 on
     August 1, 1993, and will increase again to $4.25 on
     July 1, 1994.  [94/1]

  .  CALIFORNIA -- S.D.I. RATE DROPS.  For 1995, the S.D.I.
     withholding tax on wages is reduced to 1.0%, from 1.3%
     in 1994.  It still applies to the first $31,767 of wages
     per employee. [95/2]

  .  CALIFORNIA -- LOCAL SALES TAX CHANGES.  The Santa Clara
     County sales tax rate dropped from a total of 8.25% to
     7.75% on April 1, 1995, and a replacement sales tax is
     not being implemented until a court decides its valid-
     ity.  Meanwhile, Clear Lake City has adopted a citywide
     sales tax increase of 0.5% for public safety purposes.
     [95/1]

  .  CALIFORNIA EMPLOYER WITHHOLDING RULES REVISED FOR 1995.
     Once again, withholding requirements for employers in
     California have been significantly revised, for calendar
     year 1995.  [95/1]

  .  CALIFORNIA -- SMOKE-FREE WORKPLACE RULES.  Effective as
     of January 1, 1995, new state law goes into effect,
     regulating smoking in the workplace.  [94/4]

  .  CALIFORNIA -- NEW DIESEL FUEL TAX.  Effective as of July
     1, 1995, the state has imposed an 18 cent per gallon
     excise tax on diesel fuel.  [94/4]

  .  CALIFORNIA -- LEGISLATURE PASSES LLC LAW.  Just as this
     version of the program is being released, the California
     Legislature has just passed a Limited Liability Company
     Law, which is expected to be signed into law by the
     governor in early October, 1994.  [94/3]

  .  CALIFORNIA -- BUSINESS TAX INCENTIVES ENACTED.  Updated
     to reflect late '93 California tax reform legislation,
     including 6% investment tax credit, sales tax exemption
     on equipment purchases for certain start up businesses,
     and 50% exclusion of gain on sale of certain small
     business stock. [94/1]

  .  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.... [93/4]

  .  CALIFORNIA TOBACCO TAX INCREASES. Updated to reflect
     increase in California cigarette tax to 37 cents a
     pack in 1994, and an increase in the tobacco products
     tax from 23.03% to 3.12% of the wholesale price after
     July 1, 1994. [94/3]

  .  CALIFORNIA REDUCES TAX RATE ON S CORPORATIONS.  As of
     January 1, 1994, the corporate franchise (income) tax
     on the income of S corporations is reduced from 2.5%
     to 1.5%. [94/1]

  .  CALIFORNIA SEVERANCE TAX ON OIL AND GAS.  Updated for
     1994 tax rate decrease in severance tax on oil and gas
     produced in the state.  See EXCISE TAXES.  [94/2]

  .  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. [93/3]

  .  DISTRICT OF COLUMBIA ADOPTS "LIMITED LIABILITY COMPANY"
     LAW.  Effective June 16, 1994, Washington, D.C. law
     authorizes the creation of "limited liability companies,"
     which are neither corporations nor partnerships. [94/3]

  .  DISTRICT OF COLUMBIA SALES TAX RATE CHANGES.  Effective
     from June 1, 1994 through September 30, 1994, the gen-
     eral sales tax rate in the District is temporarily in-
     creased from 6% to 7%.  Beginning October 1, 1994, it
     is scheduled to drop to 5.75%. [94/2]

  .  HAWAII INCREASES TRANSIENT ACCOMMODATIONS TAX.  The
     5% tax on transient accommodations (hotel, motel room
     charges) will increase to 6%, effective July 1, 1994.
     [94/1]

  .  ILLINOIS TAX RATES EXTENDED.  The state corporate
     income tax rate, which was scheduled to 4.4% after
     June 30, 1993, has been indefinitely extended at
     the 4.8% "temporary" rate.  Similarly, the personal
     income tax rate, scheduled to drop to 2.75% after
     June 30, 1993, is indefinitely extended at the
     current 3% tax rate.  [94/1]

  .  IOWA EXPANDS DEDUCTION FOR HEALTH INSURANCE.  Begin-
     ning with the 1996 tax year, Iowa will permit individ-
     uals to deduct 100% of the premiums paid for health
     insurance coverage in computing Iowa taxable income,
     regardless of whether federal law at the time permits
     a 25% (or other) deduction of such premiums for self-
     employed persons.  Also, the Iowa deduction is allowed
     for any individual taxpayer, including a wage earner,
     and not just for self-employed individuals, unlike the
     federal provision.  [95/2]

  .  KENTUCKY ADOPTS "LIMITED LIABILITY COMPANY" LAW. Effec-
     tive July 15, 1994, Kentucky law authorizes formation
     of "limited liability companies," which are neither
     corporations nor partnerships.  [94/2]

  .  LOUISIANA ADOPTS NEW TAX ON MAIL ORDER SELLERS.  Ef-
     fective August 15, 1994, a new Louisiana law imposed
     an extra 4% sales tax on out of state mail order
     vendors.  Apparently, the Louisiana lawmakers were
     not paying much attention to recent U.S. Supreme
     Court decisions (e.g., Quill Corp. v. North Dakota,
     1993) which have held such laws to be unconstitutional.
     [94/2]

  .  LOUISIANA DEPT. OF REVENUE WILL NOT ENFORCE NEW SALES
     TAX ON MAIL ORDER FIRMS.  The state Department of
     Revenue has announced it will not attempt to enforce
     the new 4% additional sales tax on out of state mail
     order vendors, until federal law is enacted that per-
     mits such state legislation.  [95/1]

  .  MAINE ADOPTS "LIMITED LIABILITY COMPANY" LAW. Effec-
     tive January 1, 1995, Maine law authorizes the
     creation of "limited liability companies," which are
     neither corporations nor partnerships.  [94/2]

  .  MICHIGAN PHASING OUT INTANGIBLES TAX.  Michigan has
     repealed its tax on intangible property, effective
     as of 1998.  It will be phased out gradually over
     the years 1994-1997.  [95/2]

  .  MICHIGAN VOTERS APPROVE SALES TAX INCREASE.  On March
     15, 1994, Michigan voters approved an increase in the
     state sales tax from 4% to 6%, to "pay for" large
     cuts recently enacted in property taxes.  Voters also
     approved a cut in the top state personal income tax
     rate from 4.6% to 4.4%, as of May 1, 1994 (an effec-
     tive 1994 rate of 4.47% for the calendar year). [94/2]

  .  MICHIGAN SINGLE BUSINESS TAX.  Updated discussion and
     analysis of Single Business Tax, including recent
     cut in tax rate from 2.35% to 2.3%. [94/3]

  .  MISSISSIPPI REPEALS BULK SALE LAW.  A majority of
     states, including Mississippi, have repealed their
     bulk sale (or "bulk transfer") laws since 1988.  The
     repeal of the Mississippi law becomes effective on
     July 1, 1995. [94/4]

  .  MISSISSIPPI ADOPTS "LIMITED LIABILITY COMPANY" LAW.
     Effective July 1, 1994, Mississippi law authorizes
     the creation of "limited liability companies," which
     are neither corporations nor partnerships.  [94/2]

  .  NEBRASKA GAS AND SPECIAL FUELS TAX REDUCED.  For the
     second quarter of 1994, the motor and special fuels
     tax rate is reduced to 23.4 cents (formerly 26 cents)
     per gallon. [94/2]

  .  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 taxable 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 TAX CUTS ENACTED.  Effective retroactive to
     January 1, 1994, the maximum individual income tax rate
     in New Jersey is reduced from 7% to 6.65%.  In addition,
     the state corporate income tax surtax of 0.375%, which
     was due to expire on June 30, 1994, has now been termin-
     ated 6 months early, as of December 31, 1993.  Further
     tax cuts in individual tax rates, to 6.58% will go into
     effect in 1995.  [94/3]

  .  NEW MEXICO REVISES CORPORATE ESTIMATED TAX SAFETY ZONE.
     Effective for tax years beginning in or after 1996,
     corporations subject to New Mexico taxation can base
     their estimated income tax payments on the higher of
     their previous year's tax liability or $5,000. [95/2]

  .  NEW MEXICO CORPORATE SURTAX REPEALED (RETROACTIVE).  A
     surtax of 18% of the amount of the corporate income tax,
     imposed on certain unitary corporations filing on a
     separate basis, which was to have gone into effect for
     the 1993 tax year, has been retroactively repealed by
     the Legislature in 1994, and thus never becomes effec-
     tive. [94/2]

  .  NEW MEXICO REDUCES GAS TAX RATE TEMPORARILY.  The state
     excise tax on gasoline and certain special fuels,
     currently 22 cents a gallon, is reduced to 20 cents
     a gallon from July 1, 1994 to July 1, 1997.  [94/1]

  .  NEW MEXICO WAGE BASE FOR UNEMPLOYMENT TAX INCREASED.
     The amount of an individual employee's wages subject
     to state unemployment tax has increased to $13,500 in
     1995, up from $13,100 in 1994. [94/4]

  .  NEW MEXICO REDUCES TAX BRACKETS.  New legislation,
     effective for 1994, slightly reduces state personal
     income tax rates in the lowest brackets (e.g., from
     2.4% to 2.2% on the first $8,000 of income, for
     joint filers). [94/2]

  .  NEW MEXICO INCORPORATION FEE REDUCED.  Effective May 18,
     1994, the maximum fee payable upon incorporation (based
     on authorized stock) is reduced from $5,000 to a new
     maximum fee of $1,000. [94/2]

  .  NEW MEXICO REPEALS FEE FOR RESALE CERTIFICATE.  Effec-
     tive as of July 1, 1994, the former $100 one-time fee
     charged to a buyer or lessee who wished to execute a
     Nontaxable Transaction Certificate is repealed. [94/4]

  .  NEW YORK CORPORATE FRANCHISE TAX BEING PHASED OUT.  The
     15% corporation franchise tax surtax will be phased in
     5% increments each year, until it expires June 30, 1997.
     [94/3]

  .  NEW YORK ADOPTS "LIMITED LIABILITY COMPANY" LAW.
     Effective October 24, 1994, New York law authorizes
     the creation of "limited liability companies," which
     are neither corporations nor partnerships.  The new
     law also provides for creation of Registered Limited
     Liability Partnerships for certain professional
     service firms.  [94/3]

  .  NORTH CAROLINA COUNTY BEGINS ASSESSING PROPERTY TAX
     ON INTANGIBLE PROPERTY.  For the first time, in 1993,
     one North Carolina county has begun to exercise its
     power to tax nonfinancial intangibles, such as pat-
     ents, copyrights and franchises.  Other counties may
     soon follow.  However, legislation is pending that
     would repeal the statewide tax on intangibles, but
     which would still allow counties to impose ad valorem
     taxes on nonfinancial intangibles. [94/2]

  .  NORTH CAROLINA MOTOR FUEL TAX RATE DECREASES.  For the
     second half of 1994, the tax rate on gasoline and other
     motor fuels is reduced from 22 cents to 21.3 cents per
     gallon.  [94/3]

  .  NORTH DAKOTA ADOPTS NEW INCOME TAX RULES FOR S CORP-
     ORATIONS AND PARTNERSHIPS.  New legislation, effective
     for tax years starting after December 31, 1994, allows
     S corporations and partnerships doing business in the
     state to file "composite" tax returns for their indi-
     vidual nonresident shareholders and partners, in lieu
     of their each having to file an individual North Dakota
     income tax return.  The tax that must be paid with such
     composite returns is to be computed by multiplying the
     North Dakota taxable income by the highest current
     federal individual tax rate, which is then to be mul-
     tiplied by the 14% North Dakota individual short form
     tax rate.  Rules for filing such returns are to be
     prescribed by the North Dakota Tax Commissioner. [95/2]

  .  OHIO ADOPTS "LIMITED LIABILITY COMPANY" LAW.  Effective
     as of July 1, 1994, Ohio law authorizes the formation
     of "limited liability companies," which are neither
     corporations nor partnerships.  [94/2]

  .  OHIO EXTENDS LITTER TAX.  The Ohio litter tax, scheduled
     to expire at the end of 1993, has been extended for two
     more years, for 1994 and 1995. [94/2]

  .  OREGON ADOPTS "LIMITED LIABILITY COMPANY" LAW.  Ef-
     fective January 1, 1994, Oregon law authorizes the
     creation of "limited liability companies," which are
     neither corporations nor partnerships.  [94/1]

  .  PENNSYLVANIA ADOPTS "LIMITED LIABILITY COMPANY" LAW.
     Effective as of February 5, 1995, Pennsylvania law
     authorizes the formation of Pennsylvania "limited
     liability companies," which are neither corporations
     nor partnerships.  [94/4]

  .  PENNSYLVANIA CUTS CORPORATE INCOME TAX RATES.  Corpor-
     ate tax rates in Pennsylvania, previously 12.25%, are
     being reduced each year until 1997, at which time the
     rate will be 9.99%.  The state inheritance tax on
     spousal transfers is also being phased out, entirely.
     [94/3]

  .  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 CHANGES INCOME TAX RATE 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 32% in 1993 (declining to 27.55% and
     25.05% at certain higher levels).  Also, the 11%
     business corporation surtax on income, scheduled to
     expire in 1993, has been extended to January 1,
     1997.  [94/1]

  .  SOUTH CAROLINA ADOPTS "LIMITED LIABILITY COMPANY" LAW.
     Effective June 1, 1994, South Carolina state law auth-
     orizes the creation of "limited liability companies,"
     which are neither corporations nor partnerships. [94/3]

  .  TENNESSEE ADOPTS "LIMITED LIABILITY COMPANY" LAW.
     Effective June 1, 1994, Tennessee state law auth-
     orizes the creation of "limited liability companies,"
     which are neither corporations nor partnerships.
     [94/3]

  .  TENNESSEE SPECIAL TAX ON SERVICES EXPIRES.  The 6.75%
     special tax on certain services expired December 31,
     1993.  Beginning January 1, 1994, such services are
     once again subject to regular sales tax. [94/1]

  .  UTAH SALES TAX RATE REDUCED.  Effective July 1, 1994,
     the state sales tax in Utah is reduced from 5% to
     4 7/8%. [94/2]

  .  VERMONT MINIMUM WAGE INCREASES.  The Vermont minimum
     wage is slated to increase from $4.25 an hour to $4.50
     an hour on January 2, 1995 and to $4.75 an hour on
     January 2, 1996. [94/4]

  .  VERMONT TAX WITHHOLDING ON PURCHASES OF REALTY FROM
     NONRESIDENTS.  Coverage expanded to include your
     withholding tax requirements if you buy Vermont real
     estate from a nonresident person.  [94/4]

  .  VERMONT SALES TAX ROSE BACK TO 5% ON SEPTEMBER 1, 1993.
     The Vermont sales tax, which dropped back to 4% on July
     1, 1993, was temporarily increased to 5% again, until
     July 1, 1995, at which time it goes back to 4%. [94/3]

  .  VERMONT INCOME TAX RATE REDUCED IN 1994.  The Vermont
     individual income tax, formerly 28% (or as high as 34%
     on income above $13,100) of the federal tax liability,
     is reduced to 25% of the federal tax liability in 1994
     and following years.  [94/3]

  .  UPDATED FOR WASHINGTON STATE BUSINESS & OCCUPATION
     TAX CHANGES OF 7-1-94.  [94/3]

  .  WASHINGTON ADOPTS "LIMITED LIABILITY COMPANY" LAW.
     Effective October 1, 1994, Washington state law auth-
     orizes the creation of "limited liability companies,"
     which are neither corporations nor partnerships.
     [94/2]

  .  WASHINGTON STATE MINIMUM WAGE INCREASE.  The state
     minimum wage in Washington increased to $4.90 an hour
     in 1994. [94/1]

  .  WISCONSIN ADOPTS "LIMITED LIABILITY COMPANY" LAW.  Ef-
     fective January 1, 1994, Wisconsin law authorizes the
     creation of "limited liability companies," which are
     neither corporations nor partnerships.  [94/1]

  .  WISCONSIN GASOLINE TAX RISES.  The Wisconsin gasoline
     tax increased from 23.1 cents to 23.4 cents per gallon,
     effective April 1, 1995.  [95/1]

  .  WYOMING EXTENDS EXTRA 1% SALES TAX FOR 2 MORE YEARS.
     The 4% state sales tax, scheduled to revert to 3% on
     July 1, 1996, has now been extended until July 1, 1998.
     However, if the state makes a determination that it has
     met certain specified budget goals before that date,
     the tax will drop to 3.5% on the July 1 after the
     Governor certifies that such a determination has been
     made. [95/2]


   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.  [94/1]

  .  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.
     [94/1]

  .  SHOULD YOU HIRE EMPLOYEES?  A new feature, which will
     suggest a few things you need to consider before you
     hire your first employee.  See the INDX menu selection
     on the Main Menu, for this item.  Look up the item,
     "HIRING EMPLOYEES" that appears in the topic index.
     [95/1]


@IF990xx]  .  BUILT-IN ORDER FORM.  In addition, we have built in a
@IF990xx]     feature that now allows you to print out the order
@IF990xx]     form to send to us (with $$ enclosed), if you want to
@IF990xx]     order an update or program upgrade, or the companion
@IF990xx]     book that we sell here and in bookstores, STARTING &
@IF990xx]     OPERATING A BUSINESS IN @STATE.

─────────────────────────────────────────────────────────────
             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.


OTHER PLANNED FEATURES....
──────────────────────────

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 next few
quarterly updates.


   ┌─────────────────────────────────────────────────────┐
   │ OUR FAVORITE QUOTE OR PITHY REMARK FOR THIS EDITION:│
   │                                                     │
   │ "Lawsuit:  A machine which you go into as a pig and │
   │  come out as a sausage." --  Ambrose Bierce         │
   │                                                     │
   └─────────────────────────────────────────────────────┘