Carol Price4 said:The W-2 for payroll tax and health insurance contributions uses the actual payment date if you pay by the 15th—but if the filing happens after the 15th, the date defaults to the 15th since that's when the contributions actually become due... I think I read that somewhere, let me try to dig it up...
I was honestly pretty surprised by what Milivoj wrote regarding those advance payments... it seems like total nonsense! Based on the logic above, it should be the payment date if settled by month-end, or the last day of the month if filed later 🤔🤔 ...that’s just my take on it, though, so don't hold me to it...
I'll do some digging, and if I find anything useful, I'll post it here, 🙂
Small business owners are going to be in such a mess now. They're used to having a bit of wiggle room, and now they're being squeezed tight—again, and once again, it's us taking the hit. Honestly, we should be asking for early retirement benefits after all this crap they've piled on our shoulders!
Man, if the proposed amendments actually strip out non-taxable income under section 39—meaning the W-2 will only cover per diems and travel reimbursements moving forward—then woohoo! At least there's one decent thing happening!
Devilgirl, what happens with those small contractors who only bother paying their taxes and prepayments once a year? Are they supposed to file a payroll report and account for contributions and prepayments every single month?
So, all those mandatory insurance premiums an independent contractor has to cover for themselves (based on whatever P&G decides) count as business expenses, right? But I was wondering about the actual taxes and surcharges paid by the contractor... Does anyone know if we're actually required to file a Form 941 now just to account for those specific contributions?
Brenda Chase3 said: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.
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?
So, I’ve already gone ahead and paid the payroll taxes based on an IRS ruling regarding a Small Business owner who isn't actually an employee of the company. I was just wondering, would these tax payments count as standard business expenses, similar to how we handle regular employee payroll taxes, or am I looking at something else entirely?
I could really use some help if anyone’s been through this before.
So, I've got this supplier over in Germany asking me for our specific legal structure. See, we operate as a sole proprietorship here in the States, but their VAT identification system doesn't seem to have a category for a simple sole proprietor. Instead, their system just lists a million different options like corporations, LLCs, partnerships, public companies, joint ventures, and who knows what else... I'm honestly kind of lost on what to tell them or how we should even be categorized in their eyes. :/ Anyone have any ideas?
Could use some advice or maybe just a gut check on this one, 🙂
So, I’ve got these shipments heading out to Germany. I worked out this specific deal with the client where we offer them a discount, but only if they settle the invoice within two weeks.
The thing is, do I actually need to send over a formal approval document for them to sign off on, or is it enough to just put a little note right there on the invoice itself? 😁 Thanks 👍
hey, I could really use some help here... do interest payments on taxes and payroll contributions count as a business expense? Like, do they actually get factored into the KPI? Thanks
Is shipping goods over to Norway actually exempt from VAT? Like, where am I supposed to log that on the tax return—under export deliveries or somewhere else?
Ethan Bailey18 said:Look... I have no clue what the former accountant was doing. But... If those goods aren't actually leaving the US, they don't meet the requirements under Section 41, so you have to charge sales tax.. Whether they decide to register or not isn't your problem.. You are handling a domestic US sale where you bill the customer.. The responsibility to collect the tax lies with you.. If they want a refund, they can register themselves.. That's their call based on their own math.. Honestly, I have no idea why invoices for goods that stayed within the US were being issued without sales tax in the first place Our state laws might vary slightly, but we still follow the standard federal guidelines and general principles
Regarding your second point... just cite the specific code that allows for the non-taxable status.. We list it as reverse charge.. citing Section But if they cited an exemption clause, then it's treated as an interstate acquisition Not sure if that helps, but that's how my auditors handled it.. Maybe some other American accountants can weigh in
Ethan Bailey18 said:That’s irrelevant... the invoice goes to the buyer regardless. I'm not sure if your software even allows that, but I used to "adjust" my base figures from 12,000 to 12,100 all the time.
Alright, thanks a ton. So, basically, this is a taxable transaction at the 25% sales tax rate and it doesn't go into the zero-rated category. But here’s the kicker—after their accountant practically bled me dry insisting that sales tax had to be on the invoices, now the procurement team is breathing down my neck asking how the hell there's sales tax on them in the first place. Their big question is whether they actually need to register for some kind of VAT refund process here in the US??? We don't really deal with any of that stuff, right?
On top of all that, since I'm still pretty much the rookie accountant here, I noticed the previous guy was entering these exact same invoices (the ones with the sales tax included) into the system as tax-free exports to other US states. So, what am I supposed to do with that mess?
Ethan Bailey18 said:'taxable transactions in the EU?' In my view, it’s just a standard delivery of goods within the USA, except you're invoicing an international client. It doesn't go in the ZP because the buyer isn't paying the tax—you are.🤔
But what happens if they don't even have a registered headquarters here in the States? 🤔🙂
ruggedmaker2 said:The Swedes actually have a point here. The goods aren't even leaving the US, so you've gotta charge sales tax. It doesn't matter where the buyer's headquarters are located; what matters is where the delivery actually happens.
When you're trying to figure out if sales tax applies, the whole thing hinges on what counts as the place of delivery—and in your situation, that’s right here in the States. Sure, you're sending an invoice to Sweden, but since you aren't actually shipping anything there, you still owe the tax.
thanks a ton 🙂 just one more thing. When I'm filling out the tax forms, does this count toward taxable transactions within the USA? And should it be included in the aggregate filings?
So, we’re shipping goods to a customer over in Sweden, who’s actually manufacturing components for another American company. Basically, we’re delivering directly to this American firm where everything just gets integrated into what the Swedes are making. My big question is: how am I supposed to handle the sales tax on these invoices? Or, honestly, should I even be charging it at all? I’m leaning towards thinking it shouldn't be applied, but our contacts in Sweden keep insisting on it. They’re arguing that since the goods we’re invoicing never actually leave the US, it's gotta be taxed, even though the buyer is sitting right there in Sweden. Thanks for any insight you guys can give me🙂
Charles Stewart69 said:Man, reading this gave me a good laugh because I was absolutely livid last year when I went to my local Chase branch to withdraw some cash and they slapped me with this massive fee just for wanting physical bills. I ended up hanging out on forums like this trying to figure out the legal way to move funds into checking first. So, look, you don't *have* to transfer it to checking, but it’s a smart move because the bank's fee for cash withdrawals is at least 0.19% plus a flat fee of at least $1.75, whereas if you just pull it from your checking account, it doesn't cost you a dime. Of course, you’ll still have to pay the bank a tiny bit for the online transfer to move that advance into checking (just a buck or two, whatever the fee is for domestic wire transfers).
p.s. I actually wanted to deposit a big stack of hundreds via my checking account too, since my bank hits me with the same ridiculous fees for cash deposits, but people on here convinced me it was probably better not to. 😁
Bottom line? Why would you even give those white-collar banking thieves a single cent of your hard-earned money? If the high fees piss you off as much as they do me, you might as well donate it to the Red Cross or hand it to a guy on the street corner.
p.p.s. I’m seriously considering unsubscribing from email statements altogether, especially since they charge $0.03 per item—honestly, what a total scam. They need to be taught a lesson. 😠
I was totally stunned when this elderly lady, who I'm pretty sure has been running her own bookkeeping business for like a century, told me something exactly like that. I know I'm still a newbie at this, but I was genuinely shocked at myself for even thinking I could make such a rookie mistake. Turns out, she was just giving me bad info. 😁 😁
So, I’m thinking an owner's draw from their own small business doesn't actually count as taxable income, right? Or am I totally off base here? Also, what's the deal with filing quarterly sales tax returns instead of monthly? 😁
I’m honestly having mini panic attacks just staring at this IRS portal, especially since I’m such a newbie at all this tax stuff. So, here’s the deal—I uploaded my sales tax data, thinking everything was smooth sailing, but when I go to check under the submitted forms section later, there’s absolutely nothing there. I’m pretty sure I signed off on it and everything looked fine, but now I'm second-guessing my entire existence. Does the system, like, need some kind of buffer period before the form actually shows up in the sent folder? Or maybe I somehow uploaded it to some random corner of the site I didn't notice? Or, god forbid, I didn't even actually hit upload in the first place... who knows? 🙂