Medlin Software, Dennis

Several states actively "took" the perceived federal savings. At least one state, by doing nothing, also got a "raise". That's the rub, so many only look at one piece of the puzzle, and some think taxes can actually go down. Tax planning has to take all items into account, such as I am learning from a specialized group who live in their RV full time, and can domicile wherever they wish. The one caveat for the RV perspective is health care, especially if not yet on Medicare. The main states RV'ers use are the obvious, the ones with no income tax. Those states generally also have lower vehicle registration fees, among other things beneficial to those not worried about actually living in their domicile state.

Could be they were well taught by their former provider, either way, enjoy!

"You can bet it is not a decrease or the Kentucky State government would not have done it." That is always my point. There is no chance a government will ever approve anything which in some way does not give the government a raise. Just the reality, not a comment on any business (government is a business).

KY appears to be going to a flat 5% tax rate (instead of brackets). In addition, sales tax has been added to 17 prior exempt items, and cigarette tax nearly doubled, which most wonks have calculated will raise income for the state. Interestingly, one of my customers wanted to argue how I "bought the kool-aid of the liberals" because I too see it as an actual tax raise (overall) on all but the very highest earners. I foolishly tried to explain taxation NEVER goes down as government has a cost, and the cost never goes down, so taxes or debt (income) has to go up... Most reports show the result as a tax hike on all but the top 5% of KY earners. I found a few who claim it will reduce KY's income, but those are the ones I do not believe...

After quite some time, I figured out to just be very thankful for any successes. I generally do not discuss my work with anyone other than a few close friends, as my "discussion" tends to be either about horrible/awful situations, or terrific successes. Many do not have much success to discuss, and can find it uncomfortable to hear my successes, or to hear the corresponding lows. The part I have constantly work on is to "let go" is how rotten some people can be, and not to be the guy who is always talking about horror stories... After a few decades, I accept my preference for the high/low style, versus the ride the middle. My actual stress time has been compacted into Jan and Feb, but issues can pop up anytime. My family has adapted to my schedule, and supports me. I have also, finally, learned to be able to turn off if needed, and accept the reality is there are no accounting emergencies, all things can be dealt with later, in a calm manner. Maturing in both internal and external age is a great teacher... the older I get, the more I can take life as it comes, and to remember to live it while I have the ability.

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.

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.

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...

>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).

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.

Some percentage of software is licensed for use, and does not involve a transfer of ownership...

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.

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).

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

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).

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...

>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.

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...

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...

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...

An appeal was filed Feb 2018. The stay for the October ruling lasts until June 2018.

Was not following, but the first article talked about the ruling being based on preferential treatment. Seems to be an extension of the Oregon ruling where the amount is included for UI purposes, to avoid discrimination. If the WI case holds, coupled with the OR ruling, it seems like HA (not actual parsonage) will go away. Had not thought about it in the way the two cases did, but I cannot argue their arguments either. In locales where property does not lose value, the bene is a "triple-dip" win for the clergy person who has their own property. Tax free money, deductible interest on the loan they pay for with tax free income, and appreciation on (or at least use of) the property gained with tax free money.

There are certain times I insist on recording phone calls as well... if not acceptable to the other party, then the phone call ends.

"After checking your records, there is no retainer balance on file. Your retainer fee is ### per hour. Once there is sufficient balance, I will schedule a consultation."

#1 priority for any volunteer or quasi volunteer "job" is to make it easy to be replaced... unless you want to be a lifer. BTDT, and unless I can see myself completing priority 1, I will no longer accept that type of gig. Only took me three decades to figure it out (I took my first volunteer gig, to revive a dormant not for profit club, at age 21, and am enjoying my first "free" spring in two decades after letting another gig go).