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  1. Today
  2. “If you don't know where you are going, you'll end up someplace else.” ― Yogi Berra
  3. Of course it's not illegal to merge personal and business accounts, but it sure creates an accounting and tax audit nightmare. Was that gas fill up for the business van or the wife's car? The trip to Staples for back-to-school supplies or office copy paper? We have clients whose monthly bank statements are four single spaced pages of everything from morning coffee to bars to the occasional business website bill. Their reconciliations cost a lot because they take so much time. Also makes it impossible to tell how much money you're making or spending--should you raise prices, buy that new piece of equipment?
  4. John, By your original post and the reference Lion gave "KPMG NOTE: Beginning September 15, 2021, employees working remotely outside of Massachusetts should have wages reported and taxes withheld to the state where they are physically performing services. Employers will want to make sure they are registered for payroll in the states their employees are working remotely, and able to handle the complexity of compliance for a mobile workforce." the MA company is reporting correctly. To add another wrinkle, you stated he travels to MA for meetings. Is he performing any services while in MA? I would indeed check with the MA DOR and if a non-resident return is required, then file it with the credit to NC for taxes paid to MA. It would appear to be small amounts here.
  5. Yesterday
  6. This happened last year all the time (to me). I cannot lie; I quit reading the messages. They were completely unimportant and not requiring action. It will probably bite me sometime.
  7. Trying to create W2 for Household Employees. 2 employees. 2nd one didn't end up making $2,400 because of some unexpected changes, but my client withheld FICA/MEDICARE for paychecks throughout the year. ATX won't let me create the efile without changing 'household employer' to 941 because she didn't make $2,400. It seems weird to click '941' since no 941s were filed, but the only other option I can think of is to have my client refund the FICA/Medicare, which seems strange. Anyone else deal with this before?
  8. Thanks for this additional information. I used to have many SD 100's but now just one. The take home is to also know which base the SD uses and they do differ. Like all the muni's, another PIA!
  9. Even if the child works for 1 or 2 other people it's highly unlikely the child is an independent contractor. In several of the Employment Tax Audits that I have been involved, the auditor did extensive on line search in the state and other databases looking for confirmation that the individual in question was actually in business .
  10. Margaret. just a heads up on school returns since I do a lot of them. A few years ago or so if someone l ived in an Earned Income School District, their self employment income is taxed for school district tax. At one time it was not but they changed that a while ago. For Traditional School Districts self employmnet income is inded exempt from school tax. This starts on page 4 of the pdf that you linked.
  11. W-2 for the child or else he'll pay SE tax. And, he's not an independent contractor if his only work is for his parent's business using the exclusion from FICA for a child of the owner.
  12. Thanks, Jims, for updates. I did omit that extra 0 on the business exclusion (details, details) and I even have it on my own returns. Businesses do not pay school district tax https://tax.ohio.gov/researcher/tax-analysis/tax-data-series/school.district.income.tax
  13. If you are a sole proprietor you are no longer allowed to use your SSN once you have employees. It isn't illegal to merge your personal banking and business if you are a sole proprietor. If no taxes are withheld and it's for their child - should it be a 1099?
  14. The business exclusion on the Ohio side is up to $ 250,000, not $ 25,000.
  15. And school districts? I don't deal with S/D's much, so I'm not sure about "business" liabilities.
  16. He should just apply for an EIN--it's easy enough to do. Best argument in favor is that he won't have to give his SS number to clients. Operating without an EIN makes me wonder if his business banking is combined with his personal, which is a big No No!
  17. Last week
  18. cbslee

    FORM 943

    Yes, if you have signed Form 8655
  19. Hi Catherine, Generally there is nothing special other than the usual registration on the Secretary of State with Articles of Organization https://www.ohiosos.gov/businesses/ Check the last box about Revised LLC Act as of Feb. 2022. For the clients this might help https://ohio.gov/business/resources/business-first-stop SMLLC is just Sch. C and no special filing as Ohio income tax begins with federal AGI. There is a 'big' exclusion of business income for taxes up to $25,000, though. If MMLLC, then 1065 and, as a pass-through entity, there may be additional requirements for out of state members. It can get a bit complicated. So this is a start and follow up depends on what the clients decide to do. That, of course, will lead to the right research path. Good luck! Oh, just be aware of the multiple municipalities that all want to tax so the location of their business is important to know.
  20. I don't think so. I think it used to be allowed many, many years ago but I believe you need an EIN now. Although the fact that there are absolutely no taxes being reported makes me wonder....
  21. Can an employer use his ss# on W-2's? instead of getting an EIN There is no withholding and no fica - child under 18
  22. And at first I was thinking that cbslee wanted some "warped" emojis added!
  23. Catherine

    2210 (penalty)

    First, put in all those ES payments with the correct pmt dates, regardless of the quarter, as 1-2-3-4. Then in the fill-in quick-navigate box type "LATE" and check the 2nd box - "Calculate penalties and interest on this return." The interest will only calculate if you have - outside of the return - gone to Setup --->Options ---> Optional Items on Return screen and checked the box at the bottom "Automatically calculate penalties and interest on returns filed after the due date." It seems that as of 2022, you no longer have to manually enter the interest rates the IRS uses in this section. That's a bonus for us! Hope that helps.
  24. Marie

    FORM 943

    Should or can a preparer sign the form 943.? instead of the owner?
  25. Anything weird in the Ohio rules on LLCs that I should be aware of? Clients who moved to Ohio last year are thinking of starting a small sideline business. Don't even know yet if it's just him, just her, or a joint venture between them. Only expected to generate a couple thousand in income per year - for a while, anyway. I know that in MA the only practical thing an LLC does for a small business is add a $520 annual filing fee to the fun. But I don't know if Ohio is similar, or if there are actual advantages. Any info/advice appreciated. Even just a link to the pertinent spot to read up myself.
  26. Be sure to get a POA and ask for a hold on his account when the notices start coming in.
  27. Ha! Yes, but not my problem.
  28. In that case it sounds like you will have to amend the return. As a result your client's return and amendment will probably end up in "Suspense" behind over 8 million other returns.
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