What is the sequence of events?

  • Thread starter I can't do that, Dave
  • Start date

I

I can't do that, Dave

I asked this in another group too.

Due to some drunk kids and an auto accident, my small home
based business is earning 1/10 of what it did. This year I
need to try and do my own taxes since my gross intake is
around $10.5K and I cannot afford a tax professional to do
both S-Corp and personal returns for Fed and AZ State.

I have been doing the 940 forms and the other State
quarterly stuff OK. I got the W2 etc from the IRS a few days
back but am wondering what sequence I need to follow.

I recall having to provide the accountant with stuff before
the end of January, but typically when I didn't need to know
about such things, I never paid much attention.

Can someone please point me at where I might find a "how to"
on doing this. It is a pretty simple tax as there are only a
few depreciating items and few deductions for raw materials.
I am thinking I can compare the last two year's returns as a
guide to what goes where.

Thanks in advance.

Dave
 
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G

Gary Goodman

(e-mail address removed) says...
I asked this in another group too.

Due to some drunk kids and an auto accident, my small home
based business is earning 1/10 of what it did. This year I
need to try and do my own taxes since my gross intake is
around $10.5K and I cannot afford a tax professional to do
both S-Corp and personal returns for Fed and AZ State.

I have been doing the 940 forms and the other State
quarterly stuff OK. I got the W2 etc from the IRS a few days
back but am wondering what sequence I need to follow.

I recall having to provide the accountant with stuff before
the end of January, but typically when I didn't need to know
about such things, I never paid much attention.

Can someone please point me at where I might find a "how to"
on doing this. It is a pretty simple tax as there are only a
few depreciating items and few deductions for raw materials.
I am thinking I can compare the last two year's returns as a
guide to what goes where.
I realize that it's been a while since you posted your
query, but since nobody else has answered I thought that I
would try to help.

Payroll taxes are dangerous. If you withhold anything from
an employee's pay (such as Social Security, Medicare, income
taxes) this money is not yours. Payroll taxes are called
"trust fund" taxes. The IRS (or the state, if you withheld
any state taxes) can shut down your business, take your
home, etc. if you fail to pay. Years ago, a client had
fallen behind on making payroll deposits. My boss was having
trouble getting her to understand that she needed to pay the
current taxes, then pay what she could toward the delinquent
taxes. When he realized that she didn't understand the
trouble she was in, he asked her "Do you like your house?"
She replied "Yes." Then he asked her "Do you want to keep
it?" Having gotten her attention, it took only a few minutes
for her to understand the situation.

You don't necessarily need to hire a CPA, but you should
find somebody with a working knowledge (and experience) to
handle your payroll issue.

Gary
 
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I

I can't do that, Dave

Thanks Gary,

I don't have a payroll issue as it is just me working and
there is no witholding tax for AZ at this income level.

Thanks for the reply though.

Dave
 
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Gary Goodman

(e-mail address removed) says...
I don't have a payroll issue as it is just me working and
there is no witholding tax for AZ at this income level.
You do have a payroll issue. I can't stress enough how a
seemingly minor mistake on payroll can cause major problems.
If you pay only yourself and just once a month, a payroll
service such as Paychex doesn't charge much. Ask about the
full-tax service (I forget the various titles that each
company gives it.) The payroll service will pay all taxes
and present you with one bill. Unemployment taxes to the
state (SUTA), the federal unemployment tax (FUTA), Social
security, etc. are all calculated as you go.

The way to look at this type of service is that it's like
insurance. You pay for it a little at a time so that you
don't get hit with a huge bill in the future. Also, a good
payroll service lets you concentrate on running your
business.

Gary
 
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