Comments for Ask CPA Sam http://askcpasam.com/blog Making Payroll, Tax, Finance, Accounting Understandable Mon, 16 Jan 2012 19:30:21 +0000 hourly 1 http://wordpress.org/?v=3.3.1 Comment on Did You Tell Your Payroll Department? by CPA Sam http://askcpasam.com/blog/2011/05/31/tell-payroll-department/comment-page-1/#comment-849 CPA Sam Mon, 16 Jan 2012 19:30:21 +0000 http://askcpasam.com/blog/?p=662#comment-849 In example number 1, tax liability begins after the employee has been in a state for a minimum number of days or earns a minimum amount of income in that state. Each state has its own laws defining when liability begins and tax filing is required. Check with your state's department of revenue for laws relevant to your situation. Because each state is different, it becomes a nightmare for employers in multiple states with mobile employees to keep track of days in a particular state by employee. In example number 2, telecommuters are considered to be working in the location of the home office. Crossing state boundaries is actually irrelevant. The location of the work creates business nexus for the employer and opens it to property, sales and income taxes as well. Withholding and tax liability for the employee would be in the state of the physical location of the home office. In example number 1, tax liability begins after the employee has been in a state for a minimum number of days or earns a minimum amount of income in that state. Each state has its own laws defining when liability begins and tax filing is required. Check with your state’s department of revenue for laws relevant to your situation. Because each state is different, it becomes a nightmare for employers in multiple states with mobile employees to keep track of days in a particular state by employee.

In example number 2, telecommuters are considered to be working in the location of the home office. Crossing state boundaries is actually irrelevant. The location of the work creates business nexus for the employer and opens it to property, sales and income taxes as well. Withholding and tax liability for the employee would be in the state of the physical location of the home office.

]]> Comment on Did You Tell Your Payroll Department? by tonyK http://askcpasam.com/blog/2011/05/31/tell-payroll-department/comment-page-1/#comment-848 tonyK Mon, 16 Jan 2012 14:16:21 +0000 http://askcpasam.com/blog/?p=662#comment-848 Withholding is required in the state where you work is not always easy to nail down. Examples: (1) if you travel for your work, would you need to pay taxes to each of the states where you conducted the work? (2) you telework across state boundaries. Employer state is Texas with no state or local taxes and telework location is in a sate where there are both state and local taxes. Withholding is required in the state where you work is not always easy to nail down. Examples:
(1) if you travel for your work, would you need to pay taxes to each of the states where you conducted the work?
(2) you telework across state boundaries. Employer state is Texas with no state or local taxes and telework location is in a sate where there are both state and local taxes.

]]> Comment on You Mean Gift Cards Are Taxable? by patty_eitel http://askcpasam.com/blog/2009/01/19/you-mean-gift-cards-are-taxable/comment-page-1/#comment-82 patty_eitel Tue, 17 May 2011 16:40:04 +0000 http://askcpasam.com/blog/?p=249#comment-82 Who comes up with this stuff? If I buy the gift it's not taxable but if they use my money to buy it (in the form of a card), it is taxable. So, either way it's my cash that purchased it. If I buy them a gift, they could sell it, take the cash and buy something with the cash so what is the difference? Either way, I was taxed when I bought it, they get tax added on at the store when they spend it. How many times do they need to tax us!! No need to reply. This just shows that common sense is never used when it comes to the government and taxes. Who comes up with this stuff? If I buy the gift it’s not taxable but if they use my money to buy it (in the form of a card), it is taxable. So, either way it’s my cash that purchased it. If I buy them a gift, they could sell it, take the cash and buy something with the cash so what is the difference? Either way, I was taxed when I bought it, they get tax added on at the store when they spend it. How many times do they need to tax us!! No need to reply. This just shows that common sense is never used when it comes to the government and taxes.

]]> Comment on Making Work Pay Credit…Doesn’t It by Ask CPA Sam » 2011 Paycheck Changes http://askcpasam.com/blog/2009/03/25/making-work-pay/comment-page-1/#comment-73 Ask CPA Sam » 2011 Paycheck Changes Fri, 21 Jan 2011 13:39:27 +0000 http://askcpasam.com/blog/?p=299#comment-73 [...]  There was an upper limit to allowable income.  The credit itself was described in detail in a blog post almost two years ago.  In the tax cut bill that Congress finally passed in mid December, the [...] [...]  There was an upper limit to allowable income.  The credit itself was described in detail in a blog post almost two years ago.  In the tax cut bill that Congress finally passed in mid December, the [...]

]]> Comment on You Mean Gift Cards Are Taxable? by CPA Sam http://askcpasam.com/blog/2009/01/19/you-mean-gift-cards-are-taxable/comment-page-1/#comment-68 CPA Sam Fri, 03 Sep 2010 19:34:38 +0000 http://askcpasam.com/blog/?p=249#comment-68 The employer giving the cards to the employees is by definition taxable because of the relationship. It does not matter how the employer comes by the gift cards. If there is an employee/employer relationship, anything with value provided to an employee by an employer is taxable and should be withheld upon. The employer giving the cards to the employees is by definition taxable because of the relationship. It does not matter how the employer comes by the gift cards. If there is an employee/employer relationship, anything with value provided to an employee by an employer is taxable and should be withheld upon.

]]> Comment on You Mean Gift Cards Are Taxable? by hammerbl http://askcpasam.com/blog/2009/01/19/you-mean-gift-cards-are-taxable/comment-page-1/#comment-66 hammerbl Thu, 26 Aug 2010 17:29:16 +0000 http://askcpasam.com/blog/?p=249#comment-66 What if the gift cards are donated from local business to the employer and then the employer gives them to employees? Would this still be a taxable to the employee? What if the gift cards are donated from local business to the employer and then the employer gives them to employees? Would this still be a taxable to the employee?

]]> Comment on Employee or Independent contractor by Taxes Cause Fireworks Too? - Ask CPA Sam http://askcpasam.com/blog/2008/05/21/employee-or-independent-contractor/comment-page-1/#comment-65 Taxes Cause Fireworks Too? - Ask CPA Sam Fri, 20 Aug 2010 17:06:09 +0000 http://askcpasam.com/blog/?p=21#comment-65 [...] A. Taxes, Taxes, Taxes.  Everyone seems to want to avoid paying taxes on their income for some reason.  Actually, it is your legal right to only pay the taxes you actually owe.  You should be taking advantage of all possible legal deduction opportunities that are available in the tax code.  In your case, yes, you will receive a 1099 for the amount you earned running the stand.  The arrangement described almost sounds like a franchising opportunity. I wonder whether you are actually “self-employed” as you are being classified or if you are indeed an employee.  I wrote an article about that one awhile back that you can read here. [...] [...] A. Taxes, Taxes, Taxes.  Everyone seems to want to avoid paying taxes on their income for some reason.  Actually, it is your legal right to only pay the taxes you actually owe.  You should be taking advantage of all possible legal deduction opportunities that are available in the tax code.  In your case, yes, you will receive a 1099 for the amount you earned running the stand.  The arrangement described almost sounds like a franchising opportunity. I wonder whether you are actually “self-employed” as you are being classified or if you are indeed an employee.  I wrote an article about that one awhile back that you can read here. [...]

]]> Comment on Social Security Tax on Everything? by Social Security Started Over - Ask CPA Sam http://askcpasam.com/blog/2010/07/14/social-security-tax-on-everything/comment-page-1/#comment-64 Social Security Started Over - Ask CPA Sam Wed, 04 Aug 2010 13:41:08 +0000 http://askcpasam.com/blog/?p=522#comment-64 [...] Aug.04, 2010 in Employee, Employer, Payroll, Taxation Q. I have a unique variation of your “Social Security Tax on Everything” post… My wife’s small company decided to change their paycheck provider in [...] [...] Aug.04, 2010 in Employee, Employer, Payroll, Taxation Q. I have a unique variation of your “Social Security Tax on Everything” post… My wife’s small company decided to change their paycheck provider in [...]

]]> Comment on You Mean Gift Cards Are Taxable? by Ask CPA Sam » Teacher Gifts From Students http://askcpasam.com/blog/2009/01/19/you-mean-gift-cards-are-taxable/comment-page-1/#comment-58 Ask CPA Sam » Teacher Gifts From Students Fri, 25 Jun 2010 14:44:08 +0000 http://askcpasam.com/blog/?p=249#comment-58 [...] Let’s say the same class of students decided to be very efficient.  Instead of donating 25 or 30 different gifts cards or cash items to a teacher, they instead collected money and donated to the school.  The school was instructed to pay this to the teacher as a lump sum.  In this scenario, the gift idea is thrown out the window.  Now the money transfers as part of an employee/employer relationship and must be considered income because the school is the employer.  The employer will either need to withhold on the payment or “gross up” the payment and pay the taxes on behalf of the employee.  This is the same as providing gift cards to teachers in lieu of cash.  I wrote about that topic in another blog article here. [...] [...] Let’s say the same class of students decided to be very efficient.  Instead of donating 25 or 30 different gifts cards or cash items to a teacher, they instead collected money and donated to the school.  The school was instructed to pay this to the teacher as a lump sum.  In this scenario, the gift idea is thrown out the window.  Now the money transfers as part of an employee/employer relationship and must be considered income because the school is the employer.  The employer will either need to withhold on the payment or “gross up” the payment and pay the taxes on behalf of the employee.  This is the same as providing gift cards to teachers in lieu of cash.  I wrote about that topic in another blog article here. [...]

]]> Comment on A Job Hunting Secret by Ask CPA Sam A Job Hunting Secret | Executive Search Talk http://askcpasam.com/blog/2010/06/11/a-job-hunting-secret/comment-page-1/#comment-54 Ask CPA Sam A Job Hunting Secret | Executive Search Talk Mon, 14 Jun 2010 05:11:20 +0000 http://askcpasam.com/blog/?p=507#comment-54 [...] here: Ask CPA Sam A Job Hunting Secret Read [...] [...] here: Ask CPA Sam A Job Hunting Secret Read [...]

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