Posts by David Green642

Brenda Chase3 said:Is anyone else seeing these massive delays with the 2015 tax filings regarding those bottom-tier contributions? It’s a total mess. For some people I know, the payments for social security and unemployment insurance haven't even been posted yet. Then you have others where the paperwork is technically correct and has just been sitting in the queue waiting for processing for five days—so they’ve actually made the payment, but the system hasn't cleared the filing yet. Honestly, it seems like almost everyone is running into some kind of glitch with their tax records. Are they still dragging their feet over there, or what is going on?
What cracks me up most is how inconsistent this is; half the payments were posted instantly—literally the same day—while the other half are nowhere to be found. I’m stuck wondering if I should just sit tight and wait or start blowing up their customer service line.

Don't sweat it too much—just stay patient. 🙂

Robin Cook4 said:Do they issue R-2 invoices?

Yeah, they do.

Brenda Chase3 said:Their official response was basically: "If your business volume has increased, then hire someone on a permanent contract. If things slow down later, you can just lay them off due to downsizing."
Can you believe that? Honestly, it feels like every inspector in the US just makes up their own rules as they go. Because if you look at audits for other companies, nothing is ever questioned, even when the documentation is identical to what these people were penalized for.
These guys were hit with a fine of $1667, but the court actually reduced it to $533 because it was a first-time offense, they're a major corporation, they've always been compliant, and they pay everything on time. So, the court showed some leniency.
I totally get where you're coming from, but in the real world, things work a bit differently.

I’d ask them then: what does an increased workload have to do with hiring someone permanently? The whole point of a temporary contract is that the workload increases for a specific, time-limited period. And once that's over, it might decrease—or it might not.

If I were in court, I’d absolutely tear them apart using objective data to prove the workload increase—there shouldn't even be room for debate. If the regulations actually stated this clearly, everything would be crystal clear.

Inspectors are honestly just incompetent. A total disaster.

Brenda Chase3 said:That’s exactly where her logic was heading—thinking there has to be an objective justification for extending the term. Essentially, you can't just say "we have more work to do," because if that's the case, the law expects you to transition that role into a permanent position. It has to be something situational. For instance, you might need extra coverage because someone is out on maternity leave, or perhaps you're scaling up for a seasonal rush, like needing extra hands at a beachfront restaurant during the summer peak, and you only need them until the season winds down. I actually saw some of my own clients get hit with a massive fine from the Department of Labor because they extended a contract citing "increased workload" as the excuse. They refused to admit they were wrong, but the regulators weren't having it.

I've had audits based on increased workload before, and nobody ever gave me grief about it. It's a gray area, honestly. In my view, you just need to back up that reason with actual accounting docs—something showing a spike in revenue or even just expenses, you know?

Otherwise, how is an inspector supposed to dispute anything just because they have a hunch? That's just pointless...

Jose Turner57 said:Robert Sanchez6, you really nailed the explanation there. Thanks so much for breaking it all down.

I was scrolling through some IRS guidelines last night regarding independent contractor agreements, and I stumbled upon exactly what you mentioned. You can't just claim an "increased workload" as a catch-all excuse to justify those types of contracts or extensions anymore; there actually has to be a solid, well-documented reason behind it. It looks like we've officially moved into a whole different area of complexity.

The reason has to be stated within the contract itself, but I couldn't find anything explicitly saying that specific reasoning *must* be detailed. Got a link?

Jose Turner57 said:How’s the employee registration process looking lately? I haven’t had to onboard or offboard anyone in about six months.
I see that filing with NOAA is sufficient.
But for Medicare, do I just need to have a registered application on file?

1. One of my employees had a contract expire on September 30th, 2014. Since the new labor laws just kicked in, I’m not sure if I can re-register them for a fixed-term contract, or if I even need to report that to NOAA.
2. What’s the standard procedure now when we’re enrolling someone on a fixed-term basis for the first time under the updated IRS guidelines?
3. When we extend an existing fixed-term agreement, do we need to notify NOAA, and do we have to provide a reason for the extension?

Sorry to be a nuisance; you guys have probably already covered this in previous threads...

😛

Can anyone confirm if I'm getting this right;

1. For an incoming invoice where the tax liability is transferred, do I book that into a specific account for foreign accounts payable?

2. An incoming invoice from abroad—say, Canada—where no tax was charged, the currency is convertible marks, and there’s no customs declaration involved. Does this go into a specific account for non-resident deliveries? Since the invoice amount is in foreign currency without tax, I'd use the mid-market exchange rate on the date of issuance or payment, then calculate the tax based on the standard US rate for whatever was purchased, right?

3. An incoming invoice from Canada, but this one has a customs declaration and is in Euros. Does this get booked under a specific account for import VAT, using accounts like 6 or 4 /221 and 2470 for customs liabilities?

4. An incoming invoice from a US state—let's say a vendor in a neighboring state—where the currency is USD, obviously. I check their status via the IRS; if they're legit, does it go into a special account for interstate goods or services? If tax is shown on the invoice, do I just book the invoice amount at the current exchange rate, apply the local US tax rate, and then try to claim a refund through some sort of VAT refund system?

5. An incoming invoice from a US state, currency is USD, I check with the IRS, they're legit, so it goes into the special account for interstate goods/services—but this time, NO tax is shown on the invoice. Do I just book the invoice amount at the exchange rate and categorize it as non-taxable?

And what happens if those US invoices don't mention a transfer of tax liability, no tax is charged, but the company is definitely registered with the IRS?

🙏🙏

Richard Howard55 said:Thanks, unknown 🙂

🎉🎉

Richard Howard55 said:Diagnosis:
I reported this to NOAA within 24 hours.
The form was processed at NOAA.
It’s been five days, and I haven’t heard anything from Medicare.
I have access to the online health portal.
This is my first time filing under these "new" regulations.

Questions:
1. Am I supposed to get a response within 8 days, since that's legally the deadline for Medicare to process the filing?
2. Will I be able to see the individual's status in SuperJ Client after using these "new" methods, or is that email just a confirmation? In other words, will someone at Medicare manually enter the data into SuperJ on my behalf?
3. What happens if those eight days pass and I have no idea what happened with the Medicare filing? If things got stuck somewhere and the deadline passes, is that on me? Should I have done something else by now?

Why am I asking:
I logged into SuperJ Client intending to register an employee.
After entering their name and SSN, a message popped up: "Person currently holds insured status and must be deregistered first!" 😵

Now I’m stuck wondering—is that message because the social security processing is still ongoing at Medicare, or is the person actually still registered somewhere, meaning the NOAA report hasn't "cleared" them yet?

Help!

😛

silverbadger said:Actually, you won't find that info in the Secretary of State's records; you'd need to look at the GE filings on the Fidelity website instead.

Correction:
They don't actually make public disclosures, they just submit statistical data, so even on the Fidelity site, you won't find anything regarding sole proprietors paying corporate tax.

My bad—I misspoke about the Secretary of State filings. I meant the Finin site.

You can pull records for sole proprietors too, but expect to pay a fee!

Sole proprietorships don't have to deal with this—since they aren't required to file public financial reports. But if you're looking at corporations or LLCs, they definitely do, because they're legally obligated to make their numbers public.

Maybe try tracking down who you actually need? If you're looking for a corporation, they might be the ones. Just head over to the Secretary of State website and run a search.

cosmictinker24 said:I’m stuck on this one... The price for the RN is sitting at 142.50, and from there... $38 It’s just... well, you have to factor in the sales tax. That's an extra 25% on top of the $90 base price. I guess that brings the total up quite a bit. Maybe? It certainly feels like more than I expected. $10 It’s an exempt fee, so there's no sales tax involved. Now I’m sitting here wondering how I'm even supposed to invoice this... whether I just mirror exactly what's on the receipt or if there's some other way to handle it. I guess we'll see. $30 First you've got the whole signature verification headache... and then there's the VAT. It’s just one thing after another, I guess. Maybe it'll settle down, but probably not. $10 Should I list these separately since they’re just fees without any sales tax applied? I suppose I'll just book them as expenses for now, but I definitely need to invoice the client properly if we want to get that money back...

Yeah, you can—and honestly, you should—just do exactly what was on the receiving report. Everything stays the same.

cosmictinker24 said:Hey there.

I'm trying to figure out how a foreign entity can invoice us for an amount we already covered on their behalf. We paid a local notary $48 for some services, but it’s a bit of a mess—some of the service is subject to a 25% sales tax, while the stamps used were tax-exempt. I guess I'll just be booking the notary's receipt as a business expense.
Thanks.

Just take a look at this sample invoice and follow the breakdown. You just need to address it to whichever client you're targeting—assuming I actually understood what you were asking...🙂

Jose Turner57 said:I’ve just set up a new LLC that isn't registered for sales tax.

1. Is this same kind of security key required for registering with Medicare?
2. Is the Finin key a universal standard for all these types of applications?
Thanks.

Yeah, but the permissions are separate—social security, healthcare, IRS, you get the idea.

Kyle Mendoza said:Hi there!
Could I get a little bit of advice here, please?
Once an LLC is officially registered, the corporation needs to register with both Medicare and the Social Security Administration.

If the business isn't going to have any employees for a while, should they go ahead and register with health and retirement services right away (and I'm talking about the corporation itself!), or should they just wait until they actually hire someone?

Generally speaking, you register the legal entity—your company—with the retirement system, and then you register your employees separately if you have them; the same goes for the director. The company is one entity, the director is another, and both get filed individually.

In my experience, they wouldn't let me register the firm without at least one employee on file—specifically the person in charge, which is obviously the director.

So, I ended up having to register both the director and the company, which naturally meant signing up for health insurance as well.

I suspect if you aren't registering a director yet, you might not need to register the company either. But honestly, I'm not entirely sure. 🙂

Brenda Chase3 said:I assume we’re talking about expenses like payroll taxes or contributions, because you’ve already accounted for standard business expenses by closing everything out against the final day of operations, just like you did with the revenue from outgoing invoices... Personally, I didn't book those kinds of expenses (like tax contributions) after the official closing date because once the small business is shuttered, it can't legally recognize any further outflows. Anything happening after the closing date simply cannot be attributed to the business's books, since all income and expenses must strictly pertain to the entity itself. It’s much like if a business owner decided to pay off a debt to the IRS a year after their LLC was dissolved... they’re paying it as a private citizen, not through the business, so you don't record it under the company's ledger. Besides, how could they even make a payment through a business checking account after the closing date? They would need a corporate seal, and a seal isn't valid for a defunct entity once the business is closed, so... That’s exactly what the agent at the IRS told me, and honestly, it makes perfect sense.

He could still pay, because the bank account stayed open. Nobody at the IRS is checking if a seal is technically valid for a transaction like that. He had some late interest penalties on his taxes, but then a refund eventually came through from the government.

Thanks so much for the reply.

frozenangler12 said:True, but you should probably give them about 10 to 15 days to process everything...

I was thinking along those lines too—thanks a lot

Brenda Chase3 said:Technically, they shouldn't be recorded, which is precisely why everything needs to be finalized by the official closing date. If there are outstanding invoices that were paid, you would settle those against the closing date of the business. The bank account itself can remain open specifically to handle any subsequent payments that you've already accounted for in your previous closing.

And what if there’s an actual deposit or withdrawal showing up on the statements? Do we just ignore those too?

Brenda Chase3 said:Since there's a three-month window for the final sales tax filings during a shutdown (which I assume is why you're grinding through all this right now), I had access to my bank statements even after everything was officially closed. So, I checked to see what had actually been settled via wire transfer; if it was paid, I marked it as a bank transfer, and if it remained unpaid, I listed it as an in-kind settlement. I used the closing date for all of them. I wonder if I should have just labeled everything as in-kind, but honestly, I don't think it's a huge deal since I could still verify the bank activity after the business ceased operations.

Makes sense to me. Thanks a lot.

I processed an employee's termination through the Social Security Administration yesterday, and it went through successfully.

Do I just sit tight now and wait for Medicare to process everything via email?