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We prepare most type of tax returns:

Individual. 

S Corporation.

C Corporation.

Partnership.

Payroll.

Amended.

Gary Bode, CPA is a Master's Degreed, nation wide accountant offering tax and business services. Member of AICPA and NCACPA. Our virtual office provides excellent service to long distance and international clients. Call (910) 399-2705 for a free phone consult.

Client Video Testimonials

Click here to watch some of our clients in their video testimonials!

Client Testimonials

I became totally and permanently disabled after a working for 44 years. I returned to college late in life (while working full-time) to fulfill my dream of becoming an RN and at that time found it necessary to secure student loans. Three years after being declared totally and permanently disabled my student loans were discharged. In January 2013 we received a 1099-C form declaring said student loans that were discharged however that amount could be considered as income for 2012. This was a large amount of money and we live on two pensions and social security income.

I started looking on the internet for information regarding 1099-C and felt that this was something that we could not handle alone. I made phone calls locally to a very reputable tax group in a city near us and they said it would cost $500 for an appointment and that they really prefer to do corporate taxes and they referred me to a local person who had worked for them at one time, we called and explained the situation and an appointment was made and then the comment was made that "I will have to do some research on this" and flags immediately went up and we called back and cancelled that appointment. I had been researching the IRSwebsite and every place else I could think of and I was not comfortable doing our own taxes this year. We called another local tax preparer that we had used in the past and made an appointment, however prior to the appointment, while still seeking information regarding our situation,

I came across a website for Gary l. Bode, MSA, CPA, PC in Wilmington, NC. I called Mr. Bodeand explained our situation and asked if he could help. He spoke very knowledgeably regarding the situation and stated that yes; he felt he could help us. As Mr. Bode was in North Carolina and we were in New York I scanned all of our documents including back-up documents for all of our claims and forwarded all to him. Mr. Bode kept in touch with us via email; we have spoken on the telephone several times and have become very comfortable with his knowledge and professionalism. Also, as I am a true "worrier" I have continued looking into information regarding our tax situation and I came upon another web page for Mr. Bode that included testimonials which spoke of his experience with this type of tax situation as it became prevalent during the recession. This reinforced in our minds that we had made the right decision in hiring this person as our tax preparer.

I share all of this as our taxes are now ready to be filed (we do owe tax for 2012 but not the astronomical figure we thought we were facing), and we are confident that they have been prepared with the utmost care by a gentleman who has an excellent working knowledge of the situation we faced and the tax laws that were applicable to said situation.

 

Bill and Carol

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Even though Gary enjoys helping colleagues, we no longer provide free consults to other tax preparers. He's happy to consult on an hourly billing basis if our schedule allows.

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Payroll CPA discusses the Temporary Payroll Tax Cut Extension Form 941 for 2012 | Wilmington NC

payroll tax CPA wilmington nc

Gary Bode, CPA: tax regulations like this help keep CPAs in business. Sad but true. For a free phone consult, call 399-2705.

Most of the earlier payroll CPA postings on this website mention the stability of payroll taxes and related issues. But 2010, 2011 and now 2012 are in flux. I’ll discuss the Social Security tax cut extension below. Federal unemployment taxes may change, too, as many states dipped into the federal well to pay unemployment benefits.

“What’s a definitive guide for the Social Security tax cut extension? Probably the 1st Quarter Form 941 for 2012.”
– Gary Bode, Wilmington NC payroll tax CPA and Form 941 preparer

Likelihood of the Temporary Payroll Tax Extension Extended Further

As a payroll CPA, it would be easier to prepare the 1st Quarter Form 941 if the extension, set to end February 29th, 2012, was extended to cover the entire 1st Quarter. I’m sure the IRS would see far fewer Form 941 errors that way. Lately Congress acts so late that the IRS must scramble to prepare new forms.

The Same Two Percent

The Social Security tax, withheld from the employee’s paycheck, is still 4.2%, down from the 6.2% rate that was in effect for decades. Supposedly, the tax break doesn’t affect the employee’s eventual Social Security payments.

Timing Regulations

  • Employers should try to comply in January.
  • If January is too much of an administration burden, the latest they can start is January 29th, 2012.
  • If the employer withholds too much, a compensating offset payment to the employee must be made by March 31st.

Social Security Tax Recapture in the form of Income Tax?

Social Security tax has always had a gross wages cap, above which no tax is due on the excess for the tax year. For 2012 the cap is $110,100. Two months of that is $18,350. Here’s the breach of logic. Taxpayers earning more than $18,350 during January and February 2012 incur a 2% income tax on the amount exceeding $18,350, on their 2013 Form 1040.

We’re a CPA payroll firm in Wilmington NC that prepares Form 941. If you have problems with the 1st Quarter 2012 Form 941, give us a call for a free phone consult at (910) 399-2705.

Here’s the IRS blurb, cut and pasted below.

 

Payroll Tax Cut Temporarily Extended into 2012

WASHINGTON— Nearly 160 million workers will benefit from the extension of the reduced payroll tax rate that has been in effect for 2011. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits.

Employers should implement the new payroll tax rate as soon as possible in 2012 but not later than Jan. 31, 2012. For any Social Security tax over-withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2012.

Employers and payroll companies will handle the withholding changes, so workers should not need to take any additional action.

Under the terms negotiated by Congress, the law also includes a new “recapture” provision, which applies only to those employees who receive more than $18,350 in wages during the two-month period (the Social Security wage base for 2012 is $110,100, and $18,350 represents two months of the full-year  amount). This provision imposes an additional income tax on these higher-income employees in an amount equal to 2 percent of the amount of wages they receive during the two-month period in excess of $18,350 (and not greater than $110,100).

This additional recapture tax is an add-on to income tax liability that the employee would otherwise pay for 2012 and is not subject to reduction by credits or deductions.  The recapture tax would be payable in 2013 when the employee files his or her income tax return for the 2012 tax year. With the possibility of a full-year extension of the payroll tax cut being discussed for 2012, the IRS will closely monitor the situation in case future legislation changes the recapture provision.

The IRS will issue additional guidance as needed to implement the provisions of this new two-month extension, including revised employment tax forms and instructions and information for employees who may be subject to the new “recapture” provision.  For most employers, the quarterly employment tax return for the quarter ending March 31, 2012 is due April 30, 2012.

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