Do you have all the W-9's you need from subcontractors?

This is an exercise I run every Nov/Dec with my clients to prepare them for the upcoming 1099 filings.  All too often we forget to request a W-9 and certificate of insurance from a new subcontractor.  If you don't get their tax ID# and mailing address you may never hear from them again and can be responsible for paying income tax on what should be a tax write-off.  On top of that, your workers compensation may cost more if you don't have the certificates of insurance at your annual Workers Comp Audit.

Get your blank W-9 with this link.

You need to issue a 1099 NEC (Non-Employee Compensation) for every subcontractor you paid $600 or more to during the year.  

You need to issue a 1099 Misc. most commonly for rent paid if you are renting commercial space.  Instructions and requirements in the link.

If you don't know how to determine if you've met the threshold, please schedule an appointment with The Bottom Line Bookkeeping & Consulting before the end of the year.

Happy Holidays!

Is Intuit starving the hand that feeds it?

I cannot tell you how beyond irritated I am right now with Intuit and QuickBooks. They routinely over-sell products that are beyond what a small start-up company needs and make it nearly impossible for them to purchase the QBDT Pro. They try instead to sell them the Enterprise Solution for Desktop which will run over $3k/yr.

I just got off the phone with a new startup who was talked into buying the most expensive QBO product with full payroll and the data is so screwed up I don't think even the most proficient QBO accountant can fix what's happening. He's spend over $2k in three months on QBO, when the QBDT Pro should be $549/yr., and enhanced payroll $649/yr.

SaaS = Software as a Subscription is the model most software companies are using, why... greed! Not everyone has stable broadband internet, it's coming, but it's not here yet. Even with a great connection the software is lagging, you must use it in a browser and continually wait for the screen to refresh. It requires a lot of mouse clicks rather than faster keyboard strokes.

Mac users are screwed, parallels that allows Mac to run PC software doesn't work any longer, so Mac users must either use QBO or buy a PC. I actually had a new client this year who didn't own a computer at all and was under the impression he could do everything he needed from the QBO phone app! Shame on Intuit! Can you imagine, phones break and get lost all the time and if that's your only recourse for small business accounting, you're in big trouble!

I am so tempted to revert new start ups back to using a spreadsheet!

30 Years of Service!

This month has 3 major milestones.

#1 It was 30 years ago I registered my first DBA and began this business. It's been a pleasure working with so many business owners in the 5 county area, helping them to succeed, grow and eventually to sell their successful businesses and retire.

#2 My baby boy turns 40 this month! Yikes!

#3 For the very first time, I'm taking a week off for spring break. I figure that's my perk for this anniversay. So, if you're not yet ready for your accountant, schedule your appointment ASAP, the airline ticket is already paid for! https://thebottomlinebookkeepingconsulting.fullslate.com/

I look forward to continuing to serve the 5 county area in the years to come... this IS what I'm doing in my retirement.

Thank you everyone!

PPP Forgiveness

15 minutes into a 2 hour webinar about PPP forgiveness... they just don't know yet. The one big difference is the amount you must spend on payroll was 75%, that's now down to 60%. We have 24 weeks from the date of the loan to calculate that amount in order to get 100% forgiveness. Right now, that date is Thanksgiving day.

Keep good records people! If you need help please don't hesitate to call. We may not know how this is exactly going to wash out at the end of the forgiveness period, but what's not forgiven, the repayment period has changed, it's now 5 years. Your goal now should be to spend on payroll!
If you need help with your record keeping, please schedule an appointment.

https://thebottomlinebookkeepingconsulting.fullslate.com/

Social Distancing Bookkeeping continued....

I will continue working remotely until we reach stage 5 of this pandemic. I'm not afraid for myself, I believe I have a strong immune system because I work in many offices on different keyboards. And because of that, I could be a carrier. I want to keep YOU safe!

Please continue to practice safe distancing, wear face masks and wash your hands! The faster we get to phases 5-6 the happier we will all be!

Social Distancing Bookkeeping

Remote desktop Bookkeeping for QBK Desktop and QB Online.

I've long used remote desktop to help my clients.  We get to see the same thing at the same time and can pass control of they mouse and keyboard back & forth... OK I'll be honest, I sometimes get a little grabby here. 

I'm only connected to your computer during our session, with your permission.  I cannot connect without you giving me your ID # and password that the program generates.  Two years ago I was injured and couldn't drive and I used this method to service my clients, making sure their 941 deposits were paid on time and took care of whatever else they needed at that time.  I expect to do the same next month when 1st. Qtr payroll taxes need to be processed.

Please use my online scheduler to book your appointment, April fills up quickly!

https://thebottomlinebookkeepingconsulting.fullslate.com/

Changes with Federal W-4 and Tax Withholding

Recent changes in the Federal withholding tables are causing concern.  Changes with the new W-4 are causing confusion.  I'm here to help.

Even if you do NOT file a new W-4 you will be affected by the new Federal Income Tax Withholding tables for 2020.  So even if you keep Married with 0 dependants you may see a decrease in your federal withholding, at times $20 - $60 less that last year with the same gross wages.

The IRS has given us the following information:

FAQs on the 2020 Form W-4

Federal form W-4 2020

Normally I suggest to employees that they update their W-4's after having their income taxes done.  Income tax preparers and most software have projections and can suggest and most times print a new updated W-4 for you to give to your employer.

Because the changes have been at times so dramatic, people are growing concerned that they may be stuck with a large tax bill next year, so I've found the following help:

Tax Withholding Estimator

You will need last year's W-2 and your most recent pay stub with year-to-date totals before you begin using this estimator.  When complete it will print an updated W-4 for you to give to your employer.

There is no limit on the number of times a year you can submit an updated W-4 and should always remember to do so whenever you have major life events, such as:

• Tax Planning
• Moving
• Marriage/divorce
• Birth or death of dependant or spouse
• Adoption of a child

Please ask your income tax professional for additional income tax planning advice.