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Transit Improvement Sales Tax Ends September 30, 2017

The Transit Improvement Area Sales and Use Tax (includes the counties of Anoka, Dakota,
Hennepin, Ramsey, and Washington) and the $20 vehicle excise tax will end on September 30,
2017.

Starting October 1, 2017, each of the five counties will implement their own Transit Sales and
Use Tax and $20 vehicle excise tax.

 Hennepin and Ramsey County will have a 0.5 percent Transit Sales and Use Tax.
 Anoka, Dakota, and Washington Counties will have a 0.25 percent Transit Sales and
Use Tax.

If you are registered for the Transit Improvement Area Tax:

Continue to report the Transit Improvement Area tax on your sales and use tax return. If you
no longer have the Transit Improvement Area tax to report, enter “zero” when filing your
return.

All businesses registered for the Transit Improvement Area Sales and Use tax will be
automatically registered for each of the new Transit Sales and Use Taxes being implemented
by the counties of Anoka, Dakota, Hennepin, Ramsey, and Washington.

Registration notices will be mailed by the end of July. General notices for the new local taxes
will be posted on our website before July 31, 2017.

Note: If you are registered for a new local tax that does not apply, you can:

Salary or Draw? How to Pay Yourself as Business Owner

Congratulations! Your small business has moved beyond the initial startup phase and is now a profitable venture. Although you may have worked for free in the early days, it’s time to pay yourself for your efforts. You generally have two options for taking home a paycheck: a salary and/or a draw based on the structure of your business.

Your Payday

If you are an officer in a corporation, the law says you must be on the payroll and receive regular checks that include withholdings for Social Security, Medicare, federal income taxes, and state income taxes in states that require them. If your company is legally structured as an S Corporation, you must receive regular paychecks with those same withholdings, but you also have the option of taking additional money beyond your salary in the form of a draw or distribution. Checks for draws and distributions are written without withholding the taxes that are taken out of a regular payroll check. So, how do you decide how much to take as a salary and how much to take as a draw?

Reasonable Compensation

End-of-the-Year Checklist for Small Businesses

The end of the year is a busy time for a whole host of reasons. Holidays, travel plans and family visits keep us all running ragged from November through January 1. But as a small business owner, there’s even more you have to handle at the end of the year. Right now is the time of year when your business really needs your attention, especially in regard to accounting, IT and end-of-year administrative tasks. Doing so not only helps you close out the current year on a high note, but it also sets you up for starting off the next year on the right foot. Here’s what you need to do for your small business before the end of the year.

Accounting

This is where you spend the bulk of your time at year’s end to get your business in order. Managing your financial records is critical throughout the year, but even more so in December. By maintaining excellent records and keeping them in order, you’ll help yourself and your accountant (if you have one) when tax time rolls around.

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