What are the rules for NYS Sales tax for my profession? --This blog’s industry is Interior Decorating and Design Services.

What are the rules for NYS Sales tax for my profession?

In this blog we are highlighting another industry with a few of the broad guidelines to follow!  Our hope is to not only provide helpful information for the business owners, but the consumers as well!

This blog’s industry is Interior Decorating and Design Services.

First, it is important to know what an interior decorating and design service is.  An interior decorating and design service is any service that generally relates to the planning and design of interior spaces. Such services include:

·         Preparation of layout drawings pertaining to the planning and design of interior spaces

·         Furniture arranging

·         Staging

·         Interior floral design

·         Any similar services

Any interior decorating or design service is taxable if those services are delivered in New York State or if they have a place of business in New York State.  Interior decorating and design services do not include services that consist of the practice of architecture or engineering.  However, if a drawing or plan is sold to a licensed architect or engineer, that is a taxable service.  If an engineer or architect uses an interior decorating or design service, the use of that service is subject to a use tax.  The tax rate for an interior decorating and design service depends on where the service is delivered or used. In other words, the sale of an interior decorating or design service is taxable where the plan was delivered to the purchaser.  For example, a plan that is purchased in Nassau County is subject to the Nassau County sales tax rates, regardless of where the property that is subject of the plan is located. On the other hand, a plan that is purchased in Delaware is not subject to New York State and local sales tax since the plans were delivered outside of New York State.  This is just a brief overview of the sales tax laws regarding the sale of interior decorating and design services.  Feel free to give our office a call for more information.

By Renee Greenspan

Watch Out for These Warning Signs of Small Business Fraud!

Watch Out for These Warning Signs of Small Business Fraud!

A business owner wears many hats.  One of those hats should be fraud detective because small businesses are by far the most vulnerable to employee fraud.  While you may want to believe the best about your employees, you should be proactive to prevent someone from taking advantage of you.

1. Is the person who takes payment from customers the same person to make a bank deposit and reconcile receivables?   These tasks should be split among employees to prevent one person from having unlimited access.

2. Who approves expenditures and writes checks for payables?  Make sure you review invoices and recognize all the vendors or purchases you write or sign checks for each month.  Are all checks accounted for each month?  Do you have a signature stamp laying around the office unsecured?  Make sure that you have division of these duties and safeguard checks in order to prevent opportunity and temptation.

3. Do your employees seem to spend more than they make?  If there doesn’t seem to be a good explanation for this, you may want to pay closer attention.

4. Do you require employees to take vacation every year?  Many frauds are detected when an employee is away and someone else is performing his/her duties.

5. Are you paying employees for time they did not work?  Review employee timecards and compare against work schedules to discourage an employee from claiming and being paid for more hours than they actually worked.    

Honorine M. Campisi, CPA

Tax Reform Impact of Moving Expenses

The moving expense deduction used to mean less taxes for those who made a qualified move for employment.  If you met the required time and distance tests, you were able to deduct costs to pack, transport and store belongings, as well as reasonable transportation and lodging expenses for you and your family while moving.

Additionally, in the past when you received reimbursement for moving expenses from your employer, the reimbursement was not included in taxable income as long as certain conditions were met.

The Tax Cuts and Jobs Act suspended these moving expense rules beginning in 2018 and continuing through 2025.  There is one exception to the suspension, and that is for active duty Armed Forces members and their families who move due to a military order requiring a permanent change of station.

 

Honorine M. Campisi, CPA