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Reminds me of the story about when the textile mills used to pay everyone weekly, in cash. One week John opened his envelope, then turned to the paymaster and complained his envelope was $2 short. The paymaster responded, "Yes, last week I overpaid you by $2, so I just deducted it this week." John nodded and walked away. The paymaster then called John back and said, "I could tell by your reaction you knew about the $2 overpayment. Why didn't you mention it last week?" John replied, "Well, I'm a reasonable man. I'm inclined to let it pass if a fellow makes a mistake. But when he messes up two times in a row, it needs to be called to somebody's attention."

Well, thanks for pointing out my error. The W-2 reporting must be corrected. The quote below is from the IRS general instructions for W-2/W-3:

When you are working 110 hours a week like jasdim or have a five-month turnaround time like Lion, it is time to hire help! We all get calls from clients wanting to know if their returns are done (even if they dropped off yesterday). In our office we avoid the guilt by having the receptionist who answers the phone ask if we have called them. When they say no, she just tells them we will call with questions or when it is done. This avoids the guilt because we don't get those calls! (To emails, I just respond that they are in queue.) In Lion's case, perhaps you can alert those with particularly complex returns that they will go on extension because their work will take up too much time during season. We do have a group of returns from a family that it crazy complex (corps, s corps, partnerships, multiple trusts), but they always bring their info to us in January. We get them done before things start getting crazy in mid-Feb. We don't always have their individual data in January, but at least the hard part is done early. Can either of you convince some clients to aim for January? I am serious about hiring help. The hard part is getting competent help. We have too many clients and not enough of us who know what we're doing (and just as important, who know what we don't know). We have hired several preparers but have discovered that it takes a few failed tries before landing a good one.

I too have had bad luck hiring preparers, and even bookkeepers and clerical help. Plus if I do hire someone, I'll be left with no work the second half of the year unless I market for MORE clients. I'm 75 and don't want more clients, even if half are prepared by an employee. I WANT to work all year. I just need to manage client expectations better. Each year I think I'm communicating better, but there's always one who calls way too much. This year it's a middle-aged woman who keeps calling about her boyfriend's return; I remind her I can only talk to her about her own return, which was already e-filed. Now the USPS keeps sending her folder away from her local distribution center, so she's calling me to have her return delivered before it gets stolen. Since 7 July I've talked to 6 USPS employees in 4 locations to try to get her package the last six miles to her house -- on the same street as her local postmaster! I have a short list of those I'm firing this fall, and she and her boyfriend are on it. Hers is a really easy return, but she's a very needy woman. I really do tell clients, when they're the 22nd client that uploaded their documents in the same week, when to expect me to be working on their returns. They call in a few days, anyway. Do that too much, and you get on my short/getting longer list.

I think the new company needs to amend the first quarter. They are lucky to have access to January payroll information but they don't know if paychecks were issued because they didn't issue them. The old company correctly filed when they had records and shouldn't be bothered. Also, who will be more inclined to help? The payroll company that was fired or the payroll company that is still receiving payments from the employer?

I get asked, really, if it is acceptable to pay in cash. I suggest it is a good idea to be prepared to pay in cash, in case they have no power or have some other issue where checks or other electronic means are not available. While rare, this does happen. Or, to be ready to cut some checks using the prior figures, or give some sort of flat amount, to get employees something for a few days.