IRS today

Discussion in 'Business Operations' started by 65hoss, Jun 16, 2003.

  1. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    Don't forget about quarterly tax payments. Today is the day.:cry:
     
  2. leadarrows

    leadarrows LawnSite Senior Member
    from N/A
    Posts: 925

    Thanks you saved me.:D
     
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    And I was having such a great day so far:angry:
     
  4. Jimbo

    Jimbo LawnSite Bronze Member
    Posts: 1,093

    Im confused. My accountant is a worthless piece of poo.

    I called him and informed him that he had my quarterly tax forms in his files, and i thought I was late so we better get them filled out and mailed. He asked if I was talking about corporate or personal returns? Hell I dont know I thought it was personal but maybe since its handled throught the corporation its corporate?????????????????????????????????????????????????????????????????????????????? I can handle everything but the payroll and taxes, and my accountant is too incompetent to help or call me back.

    Can anyone clarify as i am really stressing out that I could be overdue. FYI-I have not taken any money out as payroll this quarter...if that has any bearing.

    Jimbo
     
  5. NCSULandscaper

    NCSULandscaper Banned
    Posts: 1,557

    My next payment is due on July 15th. So i still got a while.
     
  6. Jimbo

    Jimbo LawnSite Bronze Member
    Posts: 1,093

    Finally got a VM message from my accountants secretary (wife). She said nothing was due until July 31st. Man I hate relying on other people.

    Jimbo
     
  7. Green in Idaho

    Green in Idaho LawnSite Senior Member
    from Idaho
    Posts: 833

    The July 31 due date is for payroll withholding returns. Form 941
    The June 15th is for individual (personal) estimated tax payments. Form 1040ES

    If you are an employee of the company and take ALL of your compensation as wages = no worry.

    If you get some wages and some 'dividend' income (profit flow-through) from your company then you may have to consider the estimated tax payments....

    If you are a sole prop, partnership, LLC, or S-corp you need to consider estimated payments.
     
  8. smburgess

    smburgess LawnSite Senior Member
    Posts: 469

    Don't deal with them, thank God.
     
  9. Jimbo

    Jimbo LawnSite Bronze Member
    Posts: 1,093

    Thanks Green in Idaho-

    I have an LLC corporation and take all payment through the company as payroll, but my accountant appearantly has stopped doing the estimated payments. Does this make sense? You had stated that LLC's should consider estimated payments.
    Please elaborate, because I thought that since taxes were taken out through payroll estimated payments were not needed.

    Jimbo
     
  10. Green in Idaho

    Green in Idaho LawnSite Senior Member
    from Idaho
    Posts: 833

    As the owner of an LLC you can either be

    1) an employee (payroll with withholding) to suck all the money out in the form of wages= no estimated payments since tax withholding occurs with each paycheck.

    Or
    2) taxes as a sole proprietor. All your profit is taxed on the schedule C and most likely estimated payments are required (if you earn a taxable profit for the year). Note: some states do not allow this method.

    There are exceptions to estimated payments like having a Net Operating Loss from prior years, or taking heavy depreciation expenses to wipe out the taxable profit.

    *********************
    So as you are on payroll with the LLC estimates are most likely not necessary. At the end of the year, you look and see "hey there is still $4,000 there as a profit." Boom! Christmas bonus check. 100% goes to payroll = no need for estimated payments provided you don't have other sources of large income and the payroll withholding is accurate.

    A situation where an LLC employee needs to make estimated payments. Salary is $36,000 in payroll. but the LLC will have net taxable profit of $XXX even after deducting your payroll. For example if there's $20,000 left over, that would 'flow-through' to you and be subject to S.E. tax of 2,869= should have estimated payments in ADDITION to payroll withholding.

    There are two possible streams of income_ the wages (withholding) and _ flow-through (estimated payments). If you play only in one stream do pay that way. If you use both streams you have to pay both ways for an LLC.

    *********************
    If your total take is more than$50,000 in wages, you may want to consider S-corp over LLC to save taxes. Saves a little in employment taxes.
     

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