Behind the Scenes - April 2022

10 May 2022 roxie-thoner Behind the Scenes
• Mike (Quality Assurance Manager) and his family recently went on vacation, which included a drive from New Orleans, LA, to Gulf Shores, AL.
• Stephanie (Marketing Manager) and her husband, Glenn, were finally able to celebrate their wedding, two years after originally planned, due to COVID shutdowns. They had a wonderful time with family and friends, and didn’t want the night to end.
• Carole (Staff Accountant) is part of the Mounted Posse and her unit hosted the Minnesota State Convention in March.
• Carrie (Administrative Assistant) and her husband, Lucas, recently vacationed in Isla Mujeres, Mexico.

IRS Issuances – IRS Urges Taxpayers to use IRS’ Tax Withholding Estimator Tool (April 15, 2022)

10 May 2022 StephanieE
The IRS urged taxpayers to use the IRS Tax Withholding Estimator Tool (the tool) to ensure they are having the right amount of tax withheld from their pay during 2022. The tool offers workers, self-employed individuals and retirees who have wage income a user-friendly resource for effectively tailoring the amount of income tax withheld from wages. Taxpayers can use the results from the tool to determine if they should complete a new Form W-4, Employee’s Withholding Certificate, and submit it to their employer. Checking withholding tax can:
• Ensure the right amount of tax is withheld and prevent an unexpected tax bill or penalty at tax time.
• Determine whether to have less tax withheld up front, thereby boosting take-home pay and reducing any refund at tax time.
Further, the IRS recommended checking withholding at least once a year. For taxpayers who have just finished filling out their 2021 returns, now is a good time to do it. Taxpayers can also use the tool right after a major life change including marriage, divorce or the birth of a child. Additionally, IRS recommends that taxpayers gather their most recent pay statements, information from other sources of income, and their most recent income tax return to help prepare the tool’s results accurately.
The IRS urged taxpayers still working on their 2021 returns to ensure they have all their year-end statements in hand before filing. This includes Letter 6419, 2021 Total Advance Child Tax Credit (AdvCTC) Payments, and Letter 6475, Economic Impact Payment (EIP) 3 End of Year. Alternatively, taxpayers can also check their Online Account to access information on their AdvCTC payments and EIPs. Taxpayers should e-file and choose direct deposit to help with faster delivery of refunds. Finally, the IRS reminded taxpayers that for most taxpayers the tax-filing deadline is April 18, 2022. For residents of Maine and Massachusetts, the deadline is April 19. Taxpayers who live and work abroad have until June 15. Those who need more time to file can get an automatic extension to file until October 17, 2022. (IR‑2022‑81, April 13, 2022).

Notes from the President

03 May 2022 khilton Notes from the President

Ken Hilton - President Red Wing Software

By now, most of us have completed and filed our 2021 federal and state(s) tax returns. We’ve spent a fair amount of time making sure all the information from our accounting reports has been entered into the correct accounts throughout the year. Of course, if we’ve been doing the proper analysis during the year, we should be very comfortable with the data and mainly looking for anomalies.
In addition to gathering tax return information, we’ve been managing our respective roles in the day-to-day operations of the business. Now that the first quarter of the year is complete, and all the information for completing the quarter should be entered into the accounting system, it would be a great time to review the results. The budgeting process for 2022 was probably a little more stressful than in previous years, given the uncertainty in the business climate, making it even more important to stay on top of the actual results of the first quarter with what we projected.
While we try to project what we believe will happen throughout the year, more than ever, this year’s budget will need to be a living document with necessary changes being made to accurately reflect the unexpected deviations happening within the business.
If revenue and expenses are significantly different than what was expected at this point in the year, make sure the proper adjustments are made to the budget or within the business for the remainder of the year to keep things on track and profitable.