Medlin Software, Dennis

I have a long time customer whose email address starts with 'lady38dd'. I have pondered if that is a personal only address, or one she uses for professional non personal messages as well. I use speech to text and to email every day. For me, I find spelling out words which may be confusing to the software save me a few correcting messages. Even with the spelling out words, reviewing and correcting, and sounding out punctuation, speech processing is usually faster than my typing, if the message is longer than a sentence or two. Using auto signatures also saves some time.

This is a hot item for my customers. Given the totality of the liabilities and credits, it may be the IRS is simply looking at Q liability vs Q deposits, for timeliness. There is likely no reasonable way to come up with perfect daily liability numbers until the quarter has ended (for the IRS, and for all but the most skilled employers). Some of the issues are when to apply qualified health care expenses, and when and if there is an advance from a 7200 form received. For the average employer, paying the usual deposit amount (no credits) is a safe course, then taking credits with the 941. For the skilled payroll person, taking some or all of the credits, by reducing deposits, can work if documented well, but it is a manual calculation for the most part. Since the non refundable credits can be retroactively applied starting with the first payroll of the quarter, the 941b shows one set of figures, while paycheck register type reports show other figures. Another case of those in charge wonking it up for those that do.

Ugh, but these situations provide for lifetime income opportunities...

A few years ago, for tracking reasons, as well as sanity, I require all customer contact to be in written form. I do not want to get into any more conflicts over who said what and who heard what, with written being much more efficient for me (I can reply anytime, not just office hours). I can also offload the easier replies on nearly any family member... Something to be said (thank you to my wife for the impetus!) to using the no phone calls as a gatekeeping method. Yes, a very small number complain and ask for phone calls, but I have a pre written reply about how it is not fair to allow a phone call to jump the line, and how not offering phone calls means I still do not have to charge for support.

Starting with Q2 2020, a 941 can easily have different figures than paycheck reports. FFCRA, ERC, SS deferral are examples. I had a similar issue yesterday. Someone complained their deposit record for first payroll of the year was too much, because, retroactively, they had a "non refundable" credit which should have applied. Their position also matches the completely goofy IRS instructions. Problem is, they are a semiweekly depositor, and they had to make their first deposit weeks before the nest payroll, when they "earned" the credit. It all comes out "in the wash" at EOQ, no penalty, no differences, just a refund. The customer still could not grasp how anyone could claw back a deposit already made (for no good reason), but did grasp the EOQ worked out perfectly. --- I am so thankful to have new distractions. We have the gift of our first grand baby to put things in perspective.

No such thing as an accounting emergency. As long as no one is being penalized, you are right on time. IMO, proper tax accounting has all tax payers having deposited within a few hundred dollars of their liability (not in a penalty scenario for those who choose to have a balance due) so there is not even a financial reason (large refund) for rushing. Ever more so this year as the game changed during the filing period.

Starting to see this amount hit bank accounts. I have not yet seen any reference as to how it may affect 2021 taxable income. Might be something to keep a note of for those with CA clients. https://www.ftb.ca.gov/about-ftb/newsroom/golden-state-stimulus/index.html

I did not notice any such exclusion set for 2021, did I miss it? Working with someone to finish 2020, and to make plans for 2021 (likely legit on UI through Sept 2021).

ABLE accounts are another good tool for savings without causing means test issues. I am glad to hear about a trust, as it is also likely they setup end of life scenarios. Have to be careful not to cause means test issues if appropriate...

SSI may make then non dependents, especially if receiving AAP or other cash aid. Personally, SSI application (and keep at it until approved) now, before age 18, is paramount. Opens doors. If receiving SSI, plan for and calculate switching to SSDI when eligible (for the kids' sake, do not take SS retirement before the benefit amount the kids will use for SSDI is maxed).

Some possibilities: Adoption assistance (AAP), IHSS, State sponsored aid (CA has programs to cover medical items not covered elsewhere, for example), succession issues (special needs trusts, etc.). Not so much as to alter tax prep in strange ways, but understanding the items which do not affect tax prep in case the client gives you items which can be ignored.

It has been a decade since we last had official foster kids, so ymmv. Back then, the amount of funding simply was not enough to be more than 1/2 of the support (iow, we spent more than the basic rate, out of pocket, especially for short term placements - getting clothes, toys, hair cuts, etc.). The amount was not countable income for the foster parents, unless it was an actual business (such as a group home). The two caveats: Certain placements can come with additional funding (over the basic state rate), which could be enough to make 1/2 support come into play, if it counts. Usually comes with medical coverage paid for, so the value of that could play into the calculation (if required).

Best to you and yours Judy! I may just let one go myself. Another result of how the manipulation of withholding starting with 2020 has someone blaming me for the employee not having enough withheld... An employee who was claiming M/0 prior to 2020 wanted to add 250 in FWH, and submitted a new W4. The FWH only went up ~130 because of the new W4 (the new W4 is similar to M/3 the "old" way). My customer is furious, and cannot understand why "I" have altered the withholding incorrectly. I have tried rewording the situation via several messages this morning, but I am out of ideas and patience, so the next message will be a refund notice.

Daily question for me. If the person has no experience or training, they should use a service, not self prepare. In time, payroll is absolutely something which can be self learned, with responsible research, and a year or more of "history" to compare to. Very similar to preparing one's own taxes

My advice would be to treat as a business in all aspects. Representation, insurance, succession (no sale without permission of others, buy out, set price, etc.), personal protection (corporate veil?), etc. Sibs will be happy receiving checks, but not if something comes up requiring defense, or if one or more wants out. In my case, there are three sibs (not me) who will inherit, and the current thought is to keep and rent. There is management in place. Problem is, the three sibs are in much different financial places in their lives, and common sense says the one in a tougher position will likely want to sell (and likely should) their interest, and only one of the other sibs can afford the buyout, and does not want to carry the other sib. Having multiple sibs agree on things is not always smooth, but neither is deferring to one (without protection in place, such as corp responsibility).

Personally, the issue is moot, as the business owner, should they be receptive to common sense advice, would have some sort of cooperation or other entity for liability reasons, especially with the mini golf aspect.

The important thing is to not click on links in emails, unless you are certain it is legitimate. For me, even for legitimate emails, I still manually open the web site and navigate to what I need. In many/most email readers, you can set up the incoming messages to be shown only in text (not html), which makes it tougher to click something bad in the message (also prevents the tracking gif's from working). Something to also consider when sending emails, even if a link seems appropriate to send, provide plain text instructions on how to navigate manually. Added: Sending in plain text (only) is never a bad idea, as some recipients may have settings or systems in place which more heavily filter html messages.

The tax agencies prefer one report per EIN, but they have no problem accepting/accumulating multiple reports per EIN (W2/W3 included). When asked, I suggest if the owner(s) want to keep separate books, there must be a reason, and that reason likely should be expanded to make them entirely separate for potential liability, succession, sale, etc. A good recent example is PPP and ERC. Separate entities would likely open eligibility to both, maybe more optimally than as one EIN.

If this were simple, we would be in another line of work. Sad, but it is the reality of the business, those who make the laws/rules/reporting requirements are unlikely to ever had to deal with the consequences of their actions, and there is an entire industry which profits from complication. No different than any other trade though, some learn to do, some pay t get it done. When I was coming up, it was easy for someone to learn to fix their own auto, now, nearly impossible (and one city in CA is attempting to ban things like torque wrenches, air tools, and other things I have had for decades, from being used at home).

I just noticed a new IRS draft form 5884-A. Not my area of expertise, but this may be important. https://www.irs.gov/pub/irs-dft/f5884a--dft.pdf

Hoping for the best for all affected. If it makes sense, after consultations, ask for any open trials (if the drugs of choice are not available otherwise). Not only may the drug be available only in trials, it likely is free during trials.

The employer only has to withhold for the nexus state(s). Employee "asks", unless they are already required by statue, are meaningless, and should not be honored, lest their "kindness" creates nexus. This sort of issue will be very common going forward as employers will have to deal with creating new nexus issues if allowing remote working in a new jurisdiction.

Does the W2 show the correct state, or just the incorrect one?

Conceivably good if the TP can document the hours actually worked were low enough and the work would have a similar profit if someone else was doing the same job. On another point, if this is the only income source, the TP could be harming themselves and their family by having such a low SSA income, depending on their need to factor SS benefits if any injury, death, retirement need, etc.

And while I do not have a specific reference, if the employer somehow does not collect the deferred amount from the employee, that itself becomes an addition to wages, requiring additional paperwork (and liability for both parties). The perfect example of how playing with withholding is a lose/lose for employer and employees. My customers are just now starting to deal with the effects of the no allowance W4 forms as employees are finally cleaning up their withholding (wanting more withheld) and submitting new W4 forms. Those employees who were claiming 0 or 1 allowance complain their new W4 gives LESS WH, then the employer tells me my calculations are wrong, and I have to spend time educating the employer to be able to explain to the employee. At the same time, I try to teach the employer the calculation "is" the calculation, and the employee has the ability to provide new W4 forms until they get the result they are after.