Posts by Brenda Chase3

Brandon Jackson4 said:My last post didn't go through, so I'm trying this again.
To reiterate: this whole payroll system is going to drive me insane.
Anyway, I finally figured out where everything goes in the portal, so I went ahead and tried to run a "test" entry today.

I filled out the header correctly, handled the 😳second filer signature, and moved on to Page A.

But then, on Page A, all those boxes meant for contribution amounts are grayed out... like they're locked, so you can't type anything in at all.
For example, VI1.7, VI2.6...

Basically, every box on Page A related to the contributions we calculate and pay ourselves is blocked.
The rest of the boxes seem fine.
Page B is working just fine too.
It occurred to me that maybe these specific fields were just rolled out today—like it's their first day in existence—so perhaps the IRS is just slow to unblock them.
If anyone could check if they're seeing this same lockout, it would give me some peace of mind... I just need to know if it's a system-wide thing and not just my mistake.
Thanks,

It isn't you; it's definitely them. I sent them a screenshot showing that the system is glitching because before you run the validation, all the data on Page A is entered perfectly, but as soon as you hit submit to check it, an error pops up and all those business contribution fields on Page A just vanish. They told me to try submitting via Chrome to see if that worked, but it won't work in Chrome or even in Explorer. They haven't gotten back to me since; it looks like they're just tinkering with it. Of course, they never get things done on schedule—it's always nothing but complications with them. We'll have to see tomorrow, because their website stated that submissions would be open starting at 4:00 PM, so maybe they finally fixed it.

I actually reached out to them regarding that digital interface and told them they might want to consider providing some clear, step-by-step guidance on their website on how to even fill out a form that’s essentially useless. It’s a bit of a headache because we are required to follow the letter of the law—everything has to balance perfectly from a financial standpoint—yet the form itself isn't even designed to comply with those legal requirements.

Jessica Gonzalez30 said:If a Small Business Owner receives a one-time grant from the State Employment Agency, that money should technically be treated as earmarked funds that have to be reinvested back into the business. If you can justify those expenditures to the agency within three months, it effectively counts as a business expense. Which means it lowers the taxable base—🤔 unless I've completely lost my marbles here. 😵

Here’s the catch: imagine a Small Business Owner gets an incentive for hiring someone, and that money hits their account in November. That grant is intended to cover the new employee for the following year. You can't exactly burn through all that cash in two months when the credit is meant to span a full twelve-month cycle—especially since you have to submit proof of payroll and tax contributions every quarter. But the reality is, the entire lump sum of $9.25 lands in the bank account all at once. The moment it arrives, it artificially inflates the owner's income for the current year, even though they haven't actually incurred any of the expenses yet to offset it.

I’ve got some firsthand intel here, straight from two different IRS representatives:

Regarding prepayments, they aren't being submitted manually anymore. Instead, the prepayment amount will be calculated based on the 2015 figures within the new tax form. The IRS will then bill for those prepayments, much like how they handle corporations. They can't give a specific start date because, frankly, things are a total mess over there right now—at least, that's what they told me. Regardless, all taxes and surcharges for 2015 must be settled by February 29, 2016, upon filing the tax return. Further prepayments will kick in once their system is actually up and running and processing data again.

For anyone who received various subsidies that caused their prepayment amounts to spike artificially, you can file a request to reduce those prepayments. You'll just need to provide a written explanation along with an updated summary showing that your actual income doesn't justify such high prepayment amounts. Once processed, the IRS will issue a new determination with adjusted prepayment totals.

Regarding future tax prepayments... when a Small Business Owner receives a one-time subsidy (take >'s situation for example), their income for that specific year looks significantly higher on paper. However, it feels completely illogical to be forced into massive upfront prepayments based on a windfall that won't be repeated in 2025. This isn't even standard business revenue; it’s pure support. I suspect—and I plan to double-check this—that it's possible to submit a formal explanation to calculate the prepayment based solely on regular business operations rather than including that one-off grant. They've added a new line item in the updated income section specifically for entering the prepayment amount.

stormybadger8 said:Do I still need to pay the income tax and payroll tax prepayments for January and February based on my old paperwork, or is that off the table?
Also, am I still using the same payment code, 1430, or did they change things up on me? And do I actually need to file the JOPPD for those first two months?

I took a look, and it doesn't seem like they've automatically charged the estimates for December or January yet. From what I understand, we don't actually file the monthly reports until March, once we've completed the annual tax return and have all the finalized figures for the monthly assessments.
According to rif, the 1430 code remains the same.

Brenda Chase3 said:I have a small business owner who back in 2015 collected some income from his family farm. Since the farm isn't registered for sales tax, he doesn't keep formal books for it. What I’m trying to figure out is whether I should list that farm income separately under section 4.2.1 (for instance, right underneath the sole proprietorship income), or if I should just bundle everything together, provide a total sum alongside the business recap, and then include a note explaining that the farm income was included in that total.
I read somewhere that for a family farm, you basically just subtract expenses from receipts and report that net amount on the tax return, but I’m stuck on whether it needs its own line item or if it can be lumped in with the main business earnings. Thanks!

In case anyone else is wondering about this, I can weigh in. Tax advisors suggest that if the annual farm income stays below $27, there is actually no need to report it anywhere at all, because you aren't liable for income tax on farm earnings up to that threshold.

"Income tax is due if the total value of taxable goods delivered and services performed in the previous year exceeded $76667 (for those subject to sales tax); if the total annual income from agricultural and forestry activities in the previous calendar year exceeded $26833, which is 35% of the threshold for mandatory sales tax registration; if subsidies are received according to the terms set forth in the Farm Bill; or if the individual performing the agricultural or forestry activity chooses to voluntarily register as an income tax payer."

I have a small business owner who back in 2015 collected some income from his family farm. Since the farm isn't registered for sales tax, he doesn't keep formal books for it. What I’m trying to figure out is whether I should list that farm income separately under section 4.2.1 (for instance, right underneath the sole proprietorship income), or if I should just bundle everything together, provide a total sum alongside the business recap, and then include a note explaining that the farm income was included in that total.
I read somewhere that for a family farm, you basically just subtract expenses from receipts and report that net amount on the tax return, but I’m stuck on whether it needs its own line item or if it can be lumped in with the main business earnings. Thanks!

Sam Foster7 said:It doesn't make sense to me either—he mentioned he was tracking the bank statements instead of the actual invoices... 🤦 He closed it out in both the KPI and the IRA, which then trickled down into the sales tax return.

Look, if this somehow got processed through the IRA and the KPI twice, your best bet is to just record a reversal entry in your books during December. You don't need to send a credit memo to the client since they didn't actually issue two separate invoices; you just need to correct the double-entry in your own accounting software.
It's hard for me to walk you through the technical specifics because I'm not sure how your specific software handles these workflows. In my setup, for instance, the system won't even let you close out an IRA a second time once it's finalized, unless someone accidentally generates a duplicate invoice by mistake.

Sam Foster7 said:My bad, I definitely phrased that poorly—what I meant was there’s just one single invoice that ended up being paid twice, even though only one was ever issued. And yeah, he went ahead and recorded both those incoming payments against that one lone invoice. Hopefully, that clears things up a bit better...

If he counted it twice for sales tax purposes, then you should just reduce the liability for the December 2015 period by that one extra payment. Honestly, though, I’m still struggling to wrap my head around how he logged two separate payments if there was only one invoice to begin with. How can you close out the exact same invoice twice if it was only generated once? Is this being handled within the KPI, the IRA, or just via the sales tax return during the calculation phase...

Sam Foster7 said:Could someone walk me through how that would actually look? I mean... how am I supposed to void an invoice that wasn't even officially issued yet? I'm honestly a bit stumped on the execution part... My only thought was to just reduce the total sales tax liability for the December 2015 filing by that amount. But then I wonder—would I need to send some kind of explanation to the IRS since it’ll create a discrepancy in my total annual turnover figures?...

Wait, let's clear this up... did you end up recording both invoices in May, or did you skip them entirely? You mentioned that both were booked, which implies that the same invoice was issued twice and recorded as such. If that's the case, one of them definitely needs to be voided, assuming the money has already been refunded to the client. It sounds like the actual sequence of events wasn't quite explained clearly enough.

Sam Foster7 said:So, I’ve got this small business client who realized they accidentally paid the exact same invoice twice back in May 2015. They just caught the error and sent the overpayment back today... which obviously creates a bit of a headache because, well, they already booked both payments as separate transactions back in May. Now I'm trying to figure out the cleanest way to show this in the books—how should I handle the adjustment? Is there a way to fix this through the final sales tax return, or am I looking at something more complicated?...

Just void that invoice in the December 2015 period and adjust everything through the December 2015 sales tax return.

Robin Cook4 said:Hey, can anyone help me out? How do I book a prepaid tax correction so it actually shows up in the prepaid tax adjustments section? I'm using Synesis.

The final sales tax return—specifically the adjustment filing—isn't submitted as a standalone thing anymore. Instead, you just include any necessary corrections within that final period's filing, like the 12/2015 report, to ensure everything reconciles perfectly for the entire fiscal year.

stormybadger8 said:1.) If I'm reading this right, these new codes don't kick in until month two, and they'll be tied to the FBI filing... right?
2.) For December 2015, we just use the old payment code like usual, without the FBI filing. 🤔

3.) What's the deal with tax withholdings?
Does that go straight onto the FBI filing next month, or what? And if it does, how do we fill out the FBI form—did the payment codes change for that too, or is it business as usual? 🤷
Or does the FBI filing only happen after the tax return is filed and the new assessment hits three months later? 🤔

P.S. I hope they haven't cooked up some plan to include sales tax in the FBI filing too. Haven't heard anything about it, but honestly, given the nonsense they've been pulling lately, I wouldn't put it past them. 😬

1. Yes, that's correct.
2. Yes, that's right.
3. It happens after the tax return is filed, because you won't actually know your total withholding amount until you finish that return.

P.S. They haven't done that yet, but hey, why would we be surprised if they eventually do?

Keith Martinez5 said:Hey everyone! Quick question—could someone clarify which label I should use for "recipient" versus "income" when dealing with a sole proprietor's earnings? I'm trying to get everything squared away while setting up a Sole Proprietorship file in the new module over at Sinesys LLC. Thanks so much!

We're all still waiting on updates; we will post as soon as we hear anything. 😉

Ronald Adams7 said:I’m processing the final payroll for December 2015 tomorrow. I know everything for the employees is straightforward on the tax forms, but how does it work for the employer side—specifically for a sole proprietor? The tax contributions.
Are we sticking to the old 2015 rates and using the same accounts? For instance, am I looking at $43 $23 for account 8591, or is it going to be more than that?
Do these figures also get entered into the electronic tax filings (since I'm still handing in paper forms)?

Also, how will the contribution calculations change for 2016, and when exactly does that kick in?
Will it be based on the tax return, and what's the effective date for reporting this on the digital forms?
I’m completely lost here. Someone please help! 😢

Will the account numbers, like 8214 where we’ve been paying contributions, stay the same this month? Does the change only take effect with the January 2016 payments made in February?
That’s my best guess from reading through this.

The answers were provided three posts up.
For December 2015, you stick to the old rules, and the electronic filings for January 2016 won't be submitted until February 2016. We should have more specifics regarding the filing details and the payment reference numbers within a few days, so we can discuss them here once they're clear.
Contributions will be slightly higher than they were in 2015 because the base rate increased to $1741, so the total will go up by roughly $23. You'll handle the electronic filing for those contributions just like you did for the income tax; the main difference is that we are now taking over their role, meaning we'll submit the electronic filing for taxes and withholdings on the day of the payment.

says:
I have a few questions regarding self-employment tax contributions for December 2015: am I supposed to file those right now this month via the standard payroll tax forms, or does that only apply to the January 2016 contributions due by February 15th? Also, regarding those new numeric codes for self-employment contributions... do they apply to the January 2016 payments as well?

Last year, the State Department of Labor reimbursed me for an employee's professional training. Should I record that as a receipt in my cash receipts and disbursements journal?

I haven't seen the new annual tax return through the IRS e-file system yet—has anyone else? I also haven't seen any specific payroll filings for the self-employed contributors... so I'm assuming nothing needs to be sent this month, but... if anyone knows for sure...👍🙂

The new numeric codes and the updated payroll tax filings for self-employed individuals apply to the January 2016 period, which we pay in February 2016.

You should record any funds received from the Bureau of Labor Statistics as receipts.

I haven't seen the new tax return on the IRS e-file portal either. To be honest, with everything changing so fast, I didn't even realize that the supplemental filings were moving over to the electronic system. 🐔

It’s quite a situation... honestly, the moment you even suggest raising your rates because of all this new red tape and the extra workload it brings, people just freeze up. It's like they can't handle the reality of it. I have to wonder, are any of you planning to adjust your fees for small business clients to account for these new regulatory requirements? For instance, I haven't touched my pricing in years, despite the fact that everything has shifted under our feet. The sheer volume of work has essentially doubled; my entire desk is covered in spreadsheets just to make sure I don't miss a single filing requirement. My rates are still stuck where they were five years ago, back when half of this stuff wasn't even on the books. How are you all navigating this dilemma when it comes to setting your prices?

Aaron Young85 said:So, if I’ve got my own car registered under my sole proprietorship, I’m assuming I don't have to deal with that whole "payment in kind" salary headache, right? But then I guess I'm wondering how I should actually handle the registration fees... do I just write off the whole thing, or am I stuck with that weird 70:30 split rule?
I was also thinking about fuel costs for the same vehicle—does that follow the same 70:30 logic where I can't claim the full input tax?

Thanks a bunch 🙂

Take a look at this article; it breaks down which vehicle-related expenses are 100% deductible and which ones fall under that 70/30 split.

steelfalcon60 said:Hello,
I’ve finally decided to take the plunge and start my own small business, so I have a few questions I'm hoping someone can help me clear up.
Is running a sole proprietorship essentially the same as forming an LLC in terms of scope? Specifically, am I allowed to list various services under my business umbrella regardless of my specific educational background?
I fully understand that to actually perform certain specialized tasks, I need to have a qualified professional on staff. For instance, I am trained as a civil engineering technician, whereas my wife is a licensed hairstylist. Would it be possible for me to register her profession as part of my business right from the start, even if I don't personally hold those certifications myself?

Regarding the monthly overhead and tax obligations, they seem to be around $643? At least, that is what I’ve managed to gather from the discussions here on the forum.

As for my business address, I plan to use my current residence, but I don't actually own the apartment. Is showing my ID sufficient for registration, or will I need to provide a formal lease agreement?

Also, is it actually possible to qualify for any kind of small business grants or government incentives?
Everyone seems to be talking about them, but unfortunately, I haven't been able to find any concrete information or actual applications...

One last thing—will I run into any legal or administrative hurdles when trying to set up the business if I currently have a freeze on my personal bank account?

I'll answer based on what I know, and hopefully, someone else can jump in or you can check with the local Small Business Administration office for the rest.
As for registering service categories that you won't be performing immediately (like for your wife), your best bet is to ask at the local Chamber of Commerce; they can give you a definitive answer on the spot.

Monthly contributions usually hover around $643. Once you close out your fiscal year, if your business code falls under certain industry assessments, your accountant will calculate those fees, and the IRS will bill you via monthly prepayments.
You also have to pay some minor environmental fees, but we're talking tiny amounts here—about 0.0265% of your total annual gross receipts.

You definitely need a lease agreement, regardless of whether you own the property or not. You don't necessarily need to have it notarized, but you do need to submit it to the local tax authorities so the landlord can properly account for their taxes.

Grants are definitely an option. If you are currently unemployed and registered with the unemployment office, go see them before you officially launch. Ask to speak with a caseworker and have them walk you through the specifics. That is your safest route because they will know exactly what you qualify for based on your specific status.

Having a frozen personal bank account won't affect your ability to open the business.