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Medlin Software

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  1. If the unexpected (or the inevitable) happens, low SS numbers affects survivors, non-working spouses, disabled dependents, etc. Hugely complicated issue, but if one believes the eagle will never let SS founder, then it is a factor too often ignored. Personally, my area of worry and frequent discussion is not what happens to the wage earner, but to think about their dependents, especially disabled dependents. A child on SSI can switch to SSDI based on the parent, which if managed to optimize earnings (strive for SS limit each year) can be a life changing amount for the recipient.
  2. Contrarian as often the case? "I don't prepare their payroll" means "I do not handle audits based on data/figures/choices I had no control over". "This client uses a payroll program" They have taken on responsibility for their payroll, and should be doing so in all respects, audits, reports, etc. Any fair PR software will have the reports they need.
  3. If I am signing a payroll form, I do it because I have prepared or been responsible for every paycheck, and deposit, so I am comfortable it is accurate with no outstanding items to cause issues. The liability chain is too onerous for me to sign forms if I do not have full knowledge/control of the underlying information. Example. Business owner disappears (fraud, mental health, etc.) with outstanding payroll obligations. If I had the authority to sign forms, any access to banking process, etc., I am on the hook. Maybe I can defend, but defense is expensive in time and money. This is maybe a once a career situation, but it does happen.
  4. Just thinking. If you prepare even one payroll report (with your signature, not a ghost prep scenario) you likely have inserted yourself into the liability pool for the entire payroll. Personally, if I touch a payroll, I take it all (all or nothing) for this reason.
  5. 7h, and similar, for anyone new to the process, I always suggest making tax deposits with every payroll. There is nothing substantial to gain on using the trust funds, and it is much easier and cleaner to only be "off" by the fraction of cents when filing. If using a payroll service (legit, not one where you use someone to "prepare" your payroll but they do not handle funds or sign forms) they will likely pull the trust fund amounts anyway... Also for payroll, note the owner cannot pay to shift liability to a third party, so it makes sense for the owner to at least gain or have a working knowledge of payroll (and business accounting too) so they can either DIY, or be able to keep a watchful eye on their provider - so they do not end up in the situation of a couple years ago where a provider went out of business and left their customers paying trust funds twice.
  6. Disengage unless very profitable and paid in advance. Especially if this area of practice is not your norm. Your post shows the heirs are not cooperative, and that the estate is upside down already.
  7. The only change from the draft form was a slight lowering of the 11c line. I spent several days trying the different combinations to make sure the items are added/subtracted as needed. The instructions are much more complicated, more worksheets, etc. For those with a normal payroll, the changes are nothing to worry about. "Normal" even includes ERC. Complications can arise if any of the Q1 FFCRA amounts were not paid in a timely fashion. Form 7200 seems pointless, as it does not seem to be processed as soon as expected (I do not suggest bothering with 7200). There is a new field for certain COBRA assistance. The "refundable" vs "non refundable" items are more complicated, as how they are calculated changed for Q2, and will change again for Q3. Not a huge deal as the end result is still the same (same eventual credit amount), but will no doubt cause consternation among some employers as to whether or not they get the proper credit.
  8. I know of a form 7200 (the supposed quick payment of 941 credits) sent in early Feb was just processed a few days ago... 7200 was supposed to be processed and the money paid out in a matter of weeks, not months. This goes along with my personal belief never to rely on a form being processed, and with that in mind, if there is ever a credit on a form, always use the refund, never relying on the tax agency to timely or properly apply to a later return.
  9. The draft version was published about a month ago. The final version was published early this morning.
  10. "Them's" is us, except we are likely a bit smarter than to run for office in the sound bite and social media world we live in.
  11. Based on history here, I suspect the majority here would stay out of the client's "business" as far as something not related to processing their returns. IN other words, just as it seems most who specialize in tax prep do not want to help with W4 management, reviewing pay stubs a time or two during the year, etc., so however the client wants to handle (or not) any possible credit is not likely a concern until filing time. I like the position Sara's form has taken as it touches on the options and ramifications without providing an opinion or suggestion. Sometimes clients have to strap up and adult. On the other hand, if they want to pay for a few hours of consultation, there may be some who are willing to provide specific advice.
  12. Sometimes these "gifts" are really a "silent/undocumented" loan...
  13. I revisit our payment receiving options at least annually. Via a costco membership, I get a no monthly fee account (Visa, MC, Disc). All sales are online, which are the highest rates, so YMMV. Looking at the total fees vs the total collected for Dec, our overall rate (all fees included, such as auth entries) was 2.6%. This is actually excellent, beating paypal by a significant amount (paypal would have worked out to about 3.25%). The rub for us is what they call "non qualified" transactions, and ironically, "commercial" cards. Other than those two types, the bulk are at 1.99% plus ~.29 cents. (There are publicly available "tips" to ensure as many transactions as possible are "qualifying".) Amex is an entirely different and more expensive "animal" (at or near 2x compared to V/M/D transactions). Paypal, or other method where you are not acting as a direct merchant, would be more appealing to me if we had higher numbers of Amex transactions. Depending on volume, you could also run into dollar limits per the processor's time frame. The third party processors are pretty clear what their limits are. If you elect to be a merchant, make certain you check with your processing partner to monitor your limits. While it can be "fun" to reach your limit, it does cause frustration as you ask for (and hopefully receive) an increase. Venmo's social aspect was a turn off for me, so I did not consider learning more.
  14. Draft format came out last week. The instructions came out this week, which contain 1/3 more pages than before... This could be another year with three revisions of the 941. (Just skimming while holding granddaughter, there are FOUR worksheets this time!)
  15. Congrats from a ~3 month member of the club. One never knows where or when, but it can happen anytime. Personally, family is earned, not given by birth. Adoption and absorption abounds in my family lineage.
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