Medlin Software, Dennis

For a good insight, refer to escapees rv org docs. It is a huge issue for mobile rv folks, full and part time. Their focus is on taxation, vehicle fees, and medical insurance, but it leads to good knowledge which helps with taxation issues. For us, more than anything, we want to keep the hmo (then their advantage plan) we have had for life, so we need to meet their eligibility requirements. Hopefully the person referenced in the op has checked into their medical coverage! one thing for sure, when we travel, I make darn sure not to trigger nexus in another state. Some allow 30 days, some, like by, are simply do not work at all, not even an email, within their border. I’m not just personal liability, but same inattentiveness could trigger company liability (even in a no withholding tax state).

No one answer. Each tax agency can have their own nexus rules. (Nexus is the proper term, to me, not residency or domicile.) Some have one second nexus, some allow 30 days, etc. Some even have a no physical pretense nexus! (Company not in CA, has a web site also not served from CA. Customer in CA clicks an "email us" link on said web site, business just created CA nexus!) Once you determine nexus, you can then figure out the proper report, whether the tax agency calls it resident, NR, or whatever. --- OP. WI resident "legally" (likely applies to WI purposes, other states do not have to honor what WI says). Likely contradicts what TX may have to say about someone present for more than half a year (or whatever TX uses as a time trigger). DOMICILE could remain in WI, since that word ties in to where the person claims home, keeps their stuff, has their bank accounts, and plans to return to, but tax residency/nexus/residency can be different than domicile.

The last time I looked, Intuit has a public facing import, but it has a fee. (A pay us for not using our payroll software fee?) This may have been an alternative income stream when they failed to get banks to accept their file format and usage fee as the defacto standard. There was a third party who attempted a work around, but they got blocked often and have to provide constant updates. No idea if they still exist. Much easier and cheaper to manually play monthly or quarterly payroll totals (into your accounting software). The details are in your payroll records already.

States have it "easy". They can claim you are a resident, and it is up to the TP to prove otherwise. CA and NY are the examples of the toughest bullies. I am sure other states have claimed aboard the "tax everyone" post-Wayfair (SCOTUS) train. Folks who legitimately want to move domicile, such as those who live full time in an RV and want to choose best for them domicile, hire experts to help. The basic advice is "leave no trace" in your former domicile. They talk about things like bank accounts, DL, doctors you see, etc. Another example is online sellers can now be taxed based on the location of their web site host's machines, where their customers are located, etc. Not jsut sales tax, but income tax. Someone in CA clicking an email link on a site (say in NY) for a business in a third state? The business may be liable for sales and income tax in all THREE states (plus localities)! No more Quill protection, Wayfair ruling has opened a real can of worms.

Many things are at the end of the follow the money rainbow. Did not want to get a no politics message though.

Ease would mean less budget/employees at the tax agencies, so it will never happen.

I use a firewall for our internet connection. Interestingly, for one phone, I will not say whose, I have to add exceptions because some of the things which get used on said phone are in Singapore, China, and a few sketchy US server farms. The Singapore and China IP addresses are for a game someone p[lays, and if I block those localities, the game hangs when it offers to show ads for rewards. The sketchy server farm is used for part of the back end of our gym's app. Not every server farm is 100% bad, so this is not an unusual situation. Each device is isolated, so it poses no risk for the other devices. Point is, there is no 100% filter method for calls, SMS, or IP addresses. For email, I wash personal messages through a gmail account. Gmail has very good junk filters, and no longer (admits to) reads(ing) the messages. I used to use mailwasher, which is also good. For phone, my personal line does not ring or jump unless the caller is in my contacts. All others have to leave a message. Very few junk calls, or even junk SMS. For business, I get probably 30/40 junk calls/SMS per day. It was less when I washed the incoming items through a VOIP system. Not that I do not use the business voice line for support, I can simply not have it ring or vibrate for any caller (unless in my contacts). For business, while I filter emails pretty well, since it is business, I still scan the spam messages as once or twice a week a good message gets trapped. Usually from someone out of the US (vacation).

For payroll taxes, I, for years, have advised (for those that deposit too much for some reason), to always ask for a refund, never a credit. Credits often get applied to other taxes and cause issues later.

The KEY for CASA is the person is on the infant/child/teenager's side, and only on their side. They have a "cleaner" influence than the social worker, "parent(s)", and even cleaner than any foster parent. There is no "book" for getting the best result for the child, so their CASA worker is the one to speak for them and make sure they get all their needs met using whatever resources are available. Interestingly, none of our fosters had a CASA worker that I can recall. Lack of volunteers was the issue. In the case of our first adopted, we petitioned the court to be declared de-facto parents, and became precedent setting our naive selves. Somehow, the universe paired us up with an attorney who was looking for such a case! One minute in the foster system can (state dependent) open up a lifetime of access to benefits for the child. The child needs to learn these things too, as it may be up to only them some day. While we are no longer active foster parents (we do emergency respite only), we do participate by helping foster families, adoptive families, and families with special needs children/adult children navigate the "system".

I have/had an avocation which was much needed, and in my case, I was not only an active participant, I was teaching others. Unfortunately my participation was reflected to family in a negative way, and cost us some good friends, so after a couple of decades, I grew tired of burdening my family. This was after switching to out of town work only, which helped, but a physical confrontation (even though I wore a hidden audio recorder) was the last straw. So when I read about complaints about the poor quality or lack of people at all (no matter the quality) performing such a service, it is a sow/reap situation.

"To take one difficult area of tax law and apply that to the whole agency is an exaggeration" To me, this has nothing to do with the IRS or any other agency. It is another sign of the moral decay of our society - period. "Do the right thing" used to not be noticeable, because it was a matter of constant action, the expected action if you will. Now when someone "does the right thing" it is unique enough it becomes the closing bit on the evening news. Worse yet, the "right thing" often gets you chastised privately and publicly, so less and less will do the right thing when it can be seen, such as some/many? in politics, or even being a volunteer in a local service group (what, you are a member of X? So is a real red/blue person, so you musty be red/blue too). For those who have a desire to help, one place which usually does not bite politically is foster care / CASA. The bite is you do have to become a little more self aware about town as you may run into a "parent" who believes you helped take their child from them, but in most cases, those folks don't bother seeking revenge.

Perfect point. Rereading the OP, sounds like more than a preparer relationship is being expected.

Family deals are the ones to worry about the most - to me. Lack of usual practices seem to always come back for a big bite at some point. I guess I have seen the demise of too many family entities because of lack of planning and documentation. The old "if it is not written, it does not exist" line has a purpose. What if the partner acting as the bank passes and the remaining partners and heirs differ on the existence of any loan balance?

Salaried employees (same pay for no minutes a week or all of them) are not part of this "temporary" rule.

Nothing being distributed, which could be true if they are loaning money to the corp every year with no payoff> Could be true the business has yet to make money and the owners keep funding the loss. Could be a need to look for some sort "other" distribution, such as personal expenses or things which should have been personal expenses. Just the feelings from an old jaded hand... who has seen similar (and nuttier) before.

Shark Tank has taught all who watch that investors want to (usually)have the business acquired within a 5- 7 year period, so they can get theirs and move on. What one sees with big likely profitable family run entities (like Drake probably was, Adam Drake, unless the family wants to keep going, without cashing out, when there are no family members willing or able to buy out others, the entity gets sold. A great example is the recent sale of Tiffin Motorhomes. Tiffin was actually PERFECTLY timed as they got theirs right before the start of the during/after COVID lull in MH sales.

Those who receive comp time get you know what-ed. "Relating to gross income; to amend Section 40-18-14, Code of Alabama 1975; to exclude hours worked above 40 in any given week from gross income." This means any tax within AL, or anything else which uses AL "gross income" (as opposed to something like "remuneration") will be affected... and likely means the W2 will show less AL wages, with the exempted wages in box 14.

If I could wave a wand and go back 40 years, I would be charging a flat rate for my payroll software, and a separate fee by state, for the states with WH. (See the thread on the upcoming AL change. I will likely be spending many hours on a small percentage of customers this fall.) I may actually implement something along this in a few years, keeping the fee the same for the no hassle (no state WH states) and only the next increase for the rest of the states. Have to balance it though, as more prices means more complication, and zero chance of automated orders, so never mind .

The text of the bill implies all amounts paid for work over 40 hours. So it is really not an OT law, as some likely get "OT" via contract or agreement, such as is often done for someone working 3 12's. AL has no state OT rule, so it reverts to FLSA and only time after 40. I saw something about this being a political item to "help" employers compete with neighbors who have no state income tax. At least they are honest this is only 5% savings on the extra pay, hoping to get employees to stay and or more readily agree to work OT. Will be interesting to see how this washes out. Hopefully they are careful with the implementation and avoid removing the exempted amount from "remuneration" for other purposes (such as UI, WC, etc.). The implication - based on the suggestion to show the OT amount in W2 box 14 - is the state wages on the W2 will be regular pay only, Too soon to be sure though as this likely just got in the hands of those tasked to implement.

“Amounts received by a full-time hourly wage paid employee as compensation for work performed in excess of 40 hours in a week.“ Reading with my brain off, just the words, is all pay for work over 40 hours in a week.

I have the same question. Wording proves written by someone who never handled a payroll. I suspect on all wages after 40 hours. Even with that, the “benefit” to the employee still maxes as 5% of the exempted amount. If one believes rules come from someone willing to pay for the change, it is likely from employers claiming this will help them keep employees. The pre report for 2023 seems to be data collecting to see if ot is more or less in 2024. The sunset half way through 2025 smells extra fishy. Payroll folks who make money on complication win. Employers lose (explaining this one to employees). Tax preparers neutral, maybe revenue increase, maybe lost clients. Me? Probably lose. Cannot charge more for this. Likely lose some clients to payroll processors. Certainly a fair chunk of hours programming and later on, answering questions.

AL has decided OT premium (paid to employees) is NOT subject to AL withholding starting 1-1-24. There will need to be a report covering 2023 (likely data gathering), and reports going forward. Stubs and W2's will be affected as well. And for additional grins, it appears to apple for all of 2024, but only half of 2025! https://www.revenue.alabama.gov/aldor-provides-guidance-for-overtime-pay-exempt-from-income-tax/

Selfishness and perceived job protection is a factor. Commonality would reduce budget and staff. States sort of agreed to a common format for certain payroll data, but over time they all added tweaks, in some case, for no apparent reason. Some state programmers are better than others, or they think they are sneaky enough to make more work. What I mean is some cannot seem to trap carriage return characters at the end of a line (yet proclaim their format IS the same as SSA). This is just one of many sad examples. Frustrating at times, but awkwardly, also ensures life long work for those here.

I am (not really) amazed business owners neglected to claim ERC "on time". Those that did not, usually pay a fee for their inattentiveness, usually to some sort of forensic payroll "expert", and to their (likely new) tax preparer. I also wonder how they missed the timely ERC, self prepared payroll with pen and paper (software vendors were likely to have sent several reminders to check out ERC) and also self prepared tax returns? It would have been worse for me had I not informed/reminded ERC was available. I still get, maybe only weekly now, requests for creating 941x because of an "accountant" helping them claim ERC. As preparers, did you mention it at all to your business owner with employee clients? If not, why not at least as an FYI? As preparers have you revisited your client records and looked at clients missing ERC as an opportunity (some % of the ERC and some $ for amended return(s))? Tough one though, as the client may or is already asking why you did not point this out earlier. Or are your ERC amend clients mostly/all new? --- ERC still gripes me, the after the fact cancellation of the last quarter ERC so the numbers/$ could be shifted to another program. Many emplyoers had to scramble to come up with deposits when they thought the money would be covered by ERC.

Unless I can verify what I was told verbally, it is worth nothing to me. Just my opinion.