HAPPY NEW YEAR!!  --  What fun to have a palindrome New Year!

Our first meeting of the year is 11:30 a.m. Tuesday, January 15, 2002 at Mulligan's.  Hope to see you there.

The American Institute of Professional Bookkeepers (AIPB) has posted a 10-question downloadable test on its Web site at www.aipb.org, so employers can size up applicants’ experience and expertise before they hire them. Additional test questions, specifically on payroll, depreciation and merchandise inventory are available. The AIPB site also provides a tip of the day from its newsletter, "The General Ledger."

I visited the above noted AIPB site and requested the test along with the additional questions. They will mail or fax it to you. They were founded in 1987 and have 35,000 members. Are any of us members?

1099s

The following is respectfully submitted by Francesca Zak:

Hi everyone and Happy New Year again! In gratitude for 2001 and hope for 2002, may it bring us all blessings and every good thing.

A reminder about QuickBooks and 1099 forms:

1099-MISC forms are due by January 31 to recipients, and by February 28 to the IRS. If you will be using QuickBooks to do them there is a necessary step to take before you can print them. Each account on your QuickBooks Chart of Accounts must be connected to the 1099 eligibility option.

Do this by going into Preferences, Tax: 1099. First, select that you will be printing 1099’s. Then access the drop-down arrow for Box 7, for Nonemployee Compensation (and any other boxes you might use, such as Rents) by clicking on the word "None." Choose "Selected Accounts" and then place a check-mark by each account that you want to be considered to be applicable for 1099’s. When you are finished click "OK" for each window you’re in. Also make sure to check the box for 1099 eligibility on the "Additional Info" tab for each vendor who requires a 1099.

The forms can be printed now, but it is a good idea to preview them first, or even print them on blank paper, in order to see if all the information is correct and complete for each independent contractor, including their Tax ID number. Also double-check that your client’s Tax ID number appears as well.

Now that we’ve had a full year of reporting this information to the Employment Development Department (new as of 1/1/01), 1099-MISC forms should be a breeze.

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Sue Starlin adds that the 1099-MISC forms have been revised for 2001 [only two forms per page], so be sure you have loaded your QuickBooks payroll tax update before printing 1099’s this year.

CLEARINGHOUSE FOR VOLUNTEER ACCOUNTING SERVICES

Traditional wisdom mandates that when we are prosperous, it is our duty to use our time and talents to assist others less fortunate than ourselves. CPAs, financial planners and bookkeepers have a unique opportunity to donate their talents through the Clearinghouse for Volunteer Accounting Services (CVAS).

CVAS works exclusively with small nonprofit organizations (NPO) that usually cannot afford to hire an accountant. Often these are grassroots organizations working to better their own communities and generally staffed by volunteers. The diversity of these organizations is one of the most interesting and fulfilling aspects of the CVAS pro bono program.

Volunteers share their skills with NPOs through four programs: Technical Assistance Program; Reduced Fee Audit Program; Board Member Placement Program; and Technical Question and Answer Program. Some of these programs offer ongoing involvement, while others offer short term or one-time only projects. Using CVAS’ on line database, financial professionals can select a volunteer opportunity by type of organization, geographic area, or by services requested.

For more information about CVAS or about volunteering, visit the CVAS Web site at www.cvas-ca.org. You may also contact them directly at 805-495-6755.

Have you noticed that the mailing addresses for forms 941 and 940 have changed? The IRS has changed a number of addresses this year for California returns:

Form 941

• Without a payment:   Ogden, UT 84201-0005

• With a payment:        P.O. Box 660264     Dallas, TX 75266-0264

• Without a payment:    Ogden, UT 84201-0047

• With a payment:         P.O. Box 660351    Dallas, TX 75266-0351

• Without a payment:   Ogden, UT 84201-0046

• With a payment:        P.O. Box 660095     Dallas, TX 75266-0095

• Without a payment:  Fresno, CA 93888-0002
• With a payment:  P.O. Box 7704     San Francisco, CA 94120-7704

P.O. Box 510000
San Francisco, CA 94151-5100

I wish I had used up all those Los Angeles envelopes!  Visit the IRS website at www.irs.ustreas.gov for other addresses and information.

The IRS is really pushing e-file. Their goal is to see 80% of returns filed electronically by 2007. The W-2s I’m using this year for my clients have the e-file logo on the copies given to employees.

SOCIAL SECURITY

The Social Security wage base of 2002 is $84,900 up from $80,400 last year. All wages are subject to Medicare withholding.

According to the SSA/IRS Winter 2001 Reporter, Social Security beneficiaries under full retirement age can earn $11,280 before their benefits are reduced. For every $2 a person under age 65 earns over that amount, $1 is withheld from benefits.

In the year employees reach full retirement age (currently 65), $1 in benefits is deducted for each $3 they earn above $30,000 until the employees reach full retirement age.

Social Security benefits are not reduced when employees are full retirement age or older, no matter how much they earn.

The full retirement age is increasing in gradual steps until it reaches age 67. This change begins in 2003, and it affects those born in 1938 or later.

California SDI

The California State Disability Insurance (SDI) for 2002 remains .9% of wages up to $46,327.

ACCPAC GIVEAWAY -- FREE SIMPLY ACCOUNTING 8.5 SOFTWARE!

ACCPAC is giving away 1,000,000 copies of Simply Accounting 8.5 free to businesses. They believe that Simply Accounting is better than QuickBooks "because it’s real accounting with a full-time audit trail." I received a 2-user trial version of Simply Accounting Pro along with an accounting magazine that I subscribe to. I have not checked it out yet. They have a big advertising campaign to accounting professionals encouraging them to become a Simply Accounting Certified Consultant or an ACCPAC Preferred Accountant and are offering special prices. Their website is www.accpaconline.com or you may call them at 800-331-8998 if you are interested in receiving a sample copy.

Your editor this month was Julie Raffety. Caron Garliepp kindly proof-read. Next month’s editor will be Jo Rogers. Thanks to those who submitted information!