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Medlin Software

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About Medlin Software

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  1. How to make big money prepping taxes ......

    Start with "10x big money", same was as how to make a fortune in racing, the software business, etc. I was deposed during a case against a current guest of the federal penal system. He was preparing returns for immigrants, with the refunds deposited into his account (since his "clients" were unbanked. Besides the morality of that alone, the returns were altered for EIC and other items, resulting in a difference between what the client was expecting, and what was received, with the difference remaining in the preparer's account. The court was more than happy to add to the person's "vacation" based on an email threat I had received after the deposition.
  2. You know it's bad when . . .

    What I like is the apparent acceptance of the duty by your staff person. I have always been one to consider my job description to be anything the employer asks, pays me for, and is not against any laws or contracts (the one time I did union work), or against my morals.
  3. Reimbursement of Medical Travel

    Catch-22. Assuming the amount should not be on a 1099, the recipient has to deal with the mess, as it is unlikely they are going to educate the charity. Similar to an "employee" who receives their pay, with nothing withheld, because their "employer" thinks they can pull off the IC scam. My wife gets a W2 each year for payments which, by statue, are not wages or taxable. The agency knows, but has no incentive (or reason) to find out if any or all is exempt. Have not yet been audited, but I know some who have. I am not happy with "ignoring" the W2...
  4. Solo 401k Income Determination

    >2% S Corp insurance is wages, and part of the "remuneration". Also is subject to all taxes and deductions (WC, CS, etc.) unless specifically excluded (such as UI).
  5. I am CRAP sometimes - I should be fired

    Price of being human... Mistakes are the best learning tool, those that never admit, find, realize they happen, are not those I want to work with.
  6. Capitalization of Software

    Some percentage of software is licensed for use, and does not involve a transfer of ownership...
  7. Working Two Different States

    The taxation (who, if anyone, gets the state tax bite) is the EASY part... How it gets withheld/paid, some get it correct, some do not, but the states will eventually get theirs. The employer will absolutely initiate nexus in the employee's state, since the employee's home also becomes their place of business. This is the part many ignore or are unaware of. Must ensure things such as all required labor posters displayed, liability insurance naming the new location (all of the usual workplace liability issues), UI for the new state, WC covering the new location, etc. Employer may want to create a written handbook covering the workplace rules (awkward, but wise). If it were me, I would only consider it if there is a dedicated space, probably a room (not a desk in a shared room). If there is a product, or samples, and they are not appropriate for children to handle for safety reasons, a policy for the product or access should be considered... The employee also has to consider what they give up, such as privacy (employer can certainly visit the work space, maybe at any time), subject to things like payroll audits at their location, personal insurance for business use of home, and so on.
  8. ATX MAX Program Error

    For unknown errors reboot the computer. When you restart, use nothing other than the program giving the error (sometimes there are memory conflicts if there is a design mistake). Also, check your "auto run" items, the items that automatically start with Windows. There are many free tools to do so. Printer software issues are another good thing to review once or twice a year. Many times, there will be printer setting/installation "remnants" which will be left in the Windows registry. There may be tools to fix those (I do not know, I clean it manually).
  9. IRS Babysitting Position

    The actual cost to care for a child seems never to be part of such calculations. Foster care, adoption assistance, child support, etc.
  10. S Corp Using PEO

    A Line 7 (1120s) amount indicates there should have been employee processing done. I would not be comfortable preparing their return, given the OP, since no W2 means I have no proof of the Line 7 amount (and I know this is a hot button for the IRS, and can easily be flagged and audited).
  11. Egg on My Face

    I still use an email program which allows (via an add on) me to send messages with a delay. Gives me a chance to catch myself should I be too flippant or just plain wrong. Something about hitting the send button (even if a delayed send), on occasion, sharpens my thoughts. Does not prevent foot on keyboard errors, but can make them rarer. On the other hand, when I have a less than optimal situation (such as a mistake), I usually end up becoming an expert on the issue, so the mistake is never wasted. Rule 1. The umpire is always right. Rule 2. If the umpire is wrong, see Rule 1. It is actually true, because when #2 happened, I made it a point to learn/relearn the rule/interpretation, making Rule 1 true again (I kicked the call before, it should have been X). Admitting, trying never to repeat, and learning from my mistakes has been very productive in all my endeavors...
  12. S Corp Using PEO

    >2% shareholders of an S corp are employees if they receive "wages". "Wages" includes benefits, in addition to the reasonable wage for their efforts... I have no idea if it would work, but maybe if the S corp had 50+ shareholders, none with more than 2% stake, but I would guess another structure would be better if that were the case... Or maybe if the corp did not want to deduct any of the shareholder compensation, and neither did the shareholder, but that does not seem likely.
  13. General Ledger Packages

    I have been subpoenaed by prosecutors to see if I had any access, knowledge, or any other information about what our customers did or did not do. Usually just a statement made via recorded phone call gets me out of the loop. No defense counsel has asked for my "help", so far...
  14. General Ledger Packages

    There is no software to handle accounting for someone with no experience or training in accounting. In other words, it is impossible to create accounting software which can be blindly used. Same for tax prep, despite many attempts...
  15. S Corp Using PEO

    Not a PEO expert... Unless the shareholder receives no compensation (including benefits), the company does have the shareholder as an employee, needs to pay a reasonable wage, meeting the minimum frequency for the state, file payroll reports, withhold and deposit taxes, etc. One item is to remember the insurance the company provides or reimburses for the >2% S Corp shareholder is wages, subject to withholding (with a few exceptions, such as SS, Medicare, and FUTA), and should be reported as wages based on constructive receipt (not just at the end of year). "Insurance" has a wide brush, and per the IRS, also includes WC insurance (if the owner/employee is covered). As is, per your information, this is low hanging fruit which will be caught easily, and painfully...