nynjtaxman Posted March 21, 2008 Report Posted March 21, 2008 I have a new client that's a Husb & wife partnership. They were paid wages ( W-2) instead of Gurr payments. In fact this has been going on for several years. I've told them to stop the wages, and draw gurr payments from now on. Any thought on handling the wages. Just report as wages as in the past? In the end it's the same tax wise except for employment taxes. Quote
jainen Posted March 21, 2008 Report Posted March 21, 2008 >>report as wages as in the past<< Right or wrong, they have established an accounting system for their compensation, and can't change it without permission from IRS. Quote
nynjtaxman Posted March 21, 2008 Author Report Posted March 21, 2008 Since they also take some Gurr payments for health ins and a simple IRA, they could reduce there wages to $1 and increase their Gurr payments. ??? Quote
jainen Posted March 21, 2008 Report Posted March 21, 2008 >>they could reduce there wages to $1<< Don't fall for goofy ideas. Ask your clients if they seriously want to be in compliance; they will say no. Quote
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