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Many business owners don’t realize how important it is to get payroll tax payments made on time. If a late payment is made, once the IRS catches up to it, the

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

penalties are quite stiff: 10% off the top, plus interest. Try earning that at a bank today! Resist the temptation to pay late, because it’s not a money save

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

, it’s a money loser. Plus, penalties are not deductible.

Quick Tip: the IRS uses the term “tax deposit” to mean “tax payment”, and uses the term “monthly

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

depositor” or “semi-weekly depositor” to mean “monthly payer” or “semi-weekly payer”, respectively.

Determine Your Payment Schedule

Before you c

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

n determine when the tax payment is due, you must first determine if you are a monthly depositor, or a semi-weekly depositor. Which type you are has nothing t

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

do with when or how often you pay your employees. In order to determine which schedule you are on, examine the payroll records during the “lookback period”.

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

This period always runs from July 1 to June 30. For 2006, the “lookback period” runs from July 1, 2004 – June 30, 2005. If the amount you withheld for 941 tax

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

s is $50,000 or less, you are a monthly depositor. If the amount during that period is more than $50,000, you are a semi-weekly depositor.

Monthly Deposit

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

or

If you are a monthly depositor, you will pay the taxes by the 15th of the next month. For example, for 941 taxes withheld during August 2006, the paym

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

nt was due on Friday, September 15. If the 15th falls on a weekend or Federal holiday, the payment is due the next business day.

Semi-Weekly Depositor

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

If the payday falls on a Wednesday, Thursday, and/or Friday, the deposit is due on or before the following Wednesday.
If the payday falls on a S

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

aturday, Sunday, Monday, and/or Tuesday, the deposit is due on or before the following Friday.

The $100,000 Rule

Regardless of which type o

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

depositor you are, if 941 withholdings reach $100,000 or more, a payment is due the next business day, and the semi-weekly deposit rules are in effect going

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

forward.

Payment Methods

You may make payments one of three ways:

The IRS will send you a yellow booklet containing coupons. Fill one out, a

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

d take a check to your bank. Be sure to fill out the top stub of the coupon for your records.

Use the Electronic Federal Tax Payment System. Visit www.ef

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

ps.com for more information and to sign up. Allow about two weeks for the enrollment process to complete. Other types of taxes can be paid as well, using this

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

system.

Find a payroll provider who offers electronic payment of employment taxes, and enroll in that service.

Avoid Costly Penalties

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

Don’t pay late
Pay using the correct method
Pay the correct amount

These guidelines are for Federal 941 payments only, and are in

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

tended for small businesses who have under $100,000 in Federal 941 payroll liabilities. See the

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

x.html>Instructions for Form 941, and Circular E, for more detail and information

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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There are peculiar natural qualities needed to make a good salesperson, and if you do not have these, you’d better turn your attention to some other career, for you cannot succeed here. Yet two men who are equally good salesmen, may be almost totally unlike. Almost. They must be good judges of human nature. How shall you become a good judge of human nature? You might as well ask me why the violets are blue; I cannot tell you.

They started out as a small, family owned retailer and gradually began to spread beyond its small town roots to towns across America. Along the way they changed the company’s name and quickly became known for offering low prices on a wide variety of items. Consumers flock to them and they are opening more stores annually in the US than any other retailer. I’m talking about Wal-Mart, right? No, Dollar General! Let’s take a closer look at another one of America’s retail success stories, the Dollar General Corporation.

Gain a basic overview of the three most important financial statements - The Profit and Loss Statement, the Balance Sheet, and the Sources and Uses Statement. Learn the different business perspectives they reveal.

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