Join the 9 million people who found a smarter way to get Expert help

Recent tax questions

TAX ATTORNEY OR CPA QUESTION: If an advance is converted to

TAX ATTORNEY OR CPA QUESTION: If an advance is converted to salary how is this booked in Quickbooks Online? For instance, say an advance of $500 was paid to an employee as a draw on March 1. The company converts this to salary as of its May 1 payroll and grosses up the net, reports it to IRS et al with its regular payroll and pays all the taxes including on the advance.In QuickBooks there is the Advance/Draw of $500 with a Mar 1 date. There is now a new salary number (gross up of the $500 net advance paid to the employee Mar 1) which is included under Employee Payroll in QB dated May 1. I merely addressed this by changing the category of the Advance to Employee Payroll. But this wipes out the record of the advance while retaining the March 1 date. But the advance was not converted to salary until May 1 and we don't want to infer that the payroll taxes were late and get penalized. It occurs to me that the in and out need to be shown in QB. For instance, the advance stays in QB but is zeroed out when posted as salary May 1 with some sort of journal entry so anyone can follow the transaction. But I do not have a good grasp on journal entries or how best to address this on every side of the transaction so am hoping someone here can tell me steps.The dates and amounts are hypothetical and there is actually more than one advance converted to new hire salary from advances while in contractor status that needs to be addressed -- but I assume that the answer to the simpler question above would apply to each such advance converted to salary on the hire date.Can you tell me step by step how to address this in QB?

Read more

Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

 
8,900 satisfied customers
I have a scorp and probably did only one billing this year

I have a scorp and probably did only one billing this year for 10k few days . what would be right way to run payroll and the options i have if there is going to be no billing for the rest of the year.

Read more

emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

 
3,558 satisfied customers
We are investing in a start up company with a friend. It is

We are investing in a start up company with a friend. It is very promising at this time. It is anticipated that we will begin to produce income in a few months.We own shares so are self-employed. We are paid a salary but no SSI or taxes are taken out since we are owners.For this tax year it is highly unlikely that we will owe taxes. This year's investment is $60,000 and my husband will not reach that amount in his "pay." Since this will, in all likelihood be a loss year, are we obligated to pay into the IRS and state on a quarterly basis? We do not have the resources to do that, just to get a refund upon filing taxes next winter.Thank you,Judy Kovarik

Read more

Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,362 satisfied customers
An LLC is created. This LLC is purchasing a property

An LLC is created. This LLC is purchasing a property renovating it, using some of it as an office and then renting the rest out. The owner is considering having his single member S-Corp own the LLC. I know the LLC is a disregarded entity and the income and expenses of the LLC will be on the 1120-S of the S-Corp. Is it still required to keep separate books for the LLC and have the income and expenses listed separately on the 1120-S? If neither the S-Corp or the sole member are real estate professionals will any losses resulting from the LLC rental property business be deductible on the member;s individual return or is it the same passive income limitations that apply as if it where owned directly by the individual?

Read more

Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,362 satisfied customers
I just started a new business and I have a few questions. I

Hello,I just started a new business and I have a few questions. I currently work as a contractor (1099) at a company in NYC, Mckinsey and Company. Mck will be paying me directly to the new company i recently formed. My company name is ***** ***** Ive been working with Mck for the past year and have been getting paid directly to my personal bank account, they also do not take out taxes for me, i withhold them myself and pay at the end of the year. But now they will be paying Slash Codes. I live in NJ and work in NYC. My company was also formed and based in NJ.My questions are:1. How much do i pay myself? I currently make $70/hr and im trying to understand the bigger picture here of how I'm, me as an individual, will get taxed and my company will get taxed.2. Are there any benefits of having them pay my company directly and what kind of tax benefits can i expect?3. I'm not sure if im registered as S-Corp, but i've been seeing there's a difference in taxation with something call S corp?

Read more

emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

 
3,558 satisfied customers
I have W-2's and 2015. My earnings over 160K. Same

I have W-2's for 2014 and 2015. My earnings over 160K. Same employer since 2013.My Social Security Statement does not reflect my income for both years. I was recently laid off 4/2016. I do not financially qualify for AZ unemployment since my income was not recorded. I was not aware that Social Security Statement was not accurate. My employer Interra LLC. has hired Icon Employer Services as a payroll company.I have let Social Security Admin. know and Dept of Econ Security I have informed by a wage protest. Dept of Labor trying to contact Employer.My question: How do I find out if SS wages and my taxes were paid etc. if the employer does not want to be contacted? But claimed to be my employer with ID numbers on W-2.

Read more

Barbara

Enrolled Agent, Paralegal

 
4,712 satisfied customers
In addition to trying to figure out how not to have my K-1

in addition to trying to figure out how not to have my K-1 reflect a big amount that I did not actually take, this is from 2013 (not 14) so I'm wondering what scenario creates the least amount of penalties. Like, if we make it 1099 income, we are late on the 1099s. If we call it wages, we have to amend our payroll tax returns and W2s.... etc.

Read more

PDtax

Owner

Master's Degree

 
6,684 satisfied customers
We are a tax exempt non-profit church. We employ "called

We are a tax exempt non-profit church. We employ "called workers". We just called a new pastor and are advancing him roughly $15,000 of future years pay to be used as a down payment on a home. He will repair this amount (no interest) over a four year period beginning in four years. We are not charging any interest. Since we are not charging any interest I'm assuming that the IRS would view this as a "gift" The Bank making the home loan is having us fill our a "Request for Verification of Gift" form.Questions are:Is there any way to handle this without our pastor paying taxes and social security on it now?Are we correct in our assumption that the IRS would treat this as a gift subject to taxes and social security?Assuming the pastor must pay payroll taxes and social security how do we handle that?Richard YerkeyPresidentEmanuel Lutheran Congregation

Read more

Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,362 satisfied customers
I received a notice from the IRS saying that I owe them

I received a notice from the IRS saying that I owe them money--that I don't understand.It may be a LTR 99C-----(there are many codes in the upper right of the page)In essence the says 'the totals you reported on the following statements don't agree with the amounts you reported on your tax returns.'It references Forms W-2 & W-3 & Form 941.What is this?

Read more

Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,362 satisfied customers
View more tax questions

How JustAnswer Works

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Pay nothing to your Expert if you're not satisfied.

In The News