So taxes due at the end of the year for the year,
Deadline up here is april 30, so IME they don't really get on your case until after 2 yrs, even if they owe you money they want you to file those taxes
Printable View
So taxes due at the end of the year for the year,
Deadline up here is april 30, so IME they don't really get on your case until after 2 yrs, even if they owe you money they want you to file those taxes
Well, TIL. That's an objectively insane quirk of the English language. Semimonthly payroll is also the stupidest shit ever, "Hey, let's set up a system where payday is always on a different day of the week and sometimes on weekends."Quote:
Originally Posted by singlesline
You need to be *close* to the right amount by the end of the year (or maybe you get some leeway into early January since income could have been earned on Dec 31). You don't have to actually file taxes and pay the difference until April 15th, but if you aren't close you will owe a penalty.Quote:
Originally Posted by XXX-er
Rules are you don't pay a penalty in April as long as one of these is true:
- You owe less than $1000 extra.
- You paid at least 90% of what you owe.
- You paid at least 100% (110% for high income) of what you owed last year.
That last one is your safety net if you really want to play games with not paying your taxes until December. You can wait until the end of the year and then pay what you owed last year...that provides you protection from any potential penalty.
As opposed to...lets set up a system where you either get paid 26 or 27 times per year (so salaried employees check sizes change)...you also have some months where you get paid 3 times instead of two.Quote:
Originally Posted by Dantheman
There's no really perfect solution, but semimonthly has some advantages:
- Most people's bills happen per month--mortgage, car, and internet bills are the same in February as in December--so there's some value in stability of monthly earnings.
- Taxes and things like health insurance plans operate on a calendar year basis so your 24 pay periods always nicely nest into the calendar year the same way.
- Reduces HR/Payroll processing overhead and eliminates any questions about when payday is (is it this week? next week?...no, it is always the same day). Heck, I know some people who only get paid once a month.
But it can be a bit more awkward for hourly/overtime depending on when you count the pay period closing dates. On a biweekly with a one-week lag you always know which check your OT pay is going to land in.
Economically it should make zero difference. You still earn the exact same amount each year and almost the same amount in each month...but we know that's not how people actually act (see how many people get excited when it is a 3-check month!).
IME with a good bookeeper ( AKA the computer) witholding tax on my steady paycheck I would be within < 100 $ either way, it was claiming car expenses or buying RRSP or not paying any taxes at all that make for large amounts of money to be owed or recieved at the end of tax year
I was told CRA really want you to file your income tax, which at its simplest is signing the T-1 and sending it in
you will still owe ( or not) taxes but technicaly you did file
my tennant asked to pay rent on the 22nd cuz thats when her welfare check arrives ... well why not ?
I'm under-withheld on my pension but I can make up the shortfall by withholding extra from my 401K mandatory distribution any time by the end of the year. Apparently withholding, unlike estimated taxes, count as timely as long as it takes place sometime during the calendar year. (The last estimated tax payment is due Jan 15 of next year.)
So far.Quote:
Originally Posted by XXX-er
well I do live in the bible belt, but the liberals are outlawing all kinds of grandfathered guns every yearQuote:
Originally Posted by BCMtnHound
What's up with this scenario where a client can send you a 1099 by snail mail, and you're responsible for reporting it. What if one goes missing, or you forget about one?
I don't know if it's the same scenario, but we hold the mortgage on our son's house. Per our accountant, we just report the mortgage interest on our 1040 with the address and his ssn, he does the same, and the IRS has been happy with that for years. Neither of us files a 1098 or 1099.
In a way yes. A client could spend $60k on goods or services from my company. Some of them choose to not send a 1099. A different company can spend whatever tiny amount the current reporting threshold is, and voluntarily chose to send me a 1099. Which I'm responsible for showing in my return.
The revenue gets reported either way, but I'd I don't have their 1099 doc in my return I presume that's a red flag.
^^^ It isn't, and FWIW if you are billing as a 1099 they are not obligated to send you anything. They are obligated to report those payments to the IRS.
I won't do business with subs that aren't corps because I hate paying my accountant to produce 1099s.
Your income. Your problem.
Streamline your process so your bookkeeping is easy. "Email a COI and I'll get you paid". Done. The rest is on you.
Sent from my Turbo 850 Flatbrimed Highhorse
I'm an LLC and the clients are sending me 1099's (without prior notice)
C or S Corp select?
If so, my understanding is that you are except from receiving 1099 misc
But there are entities out there that 1099 everyone. So yeah, fuck those companies but there is nothing you can do about it.
If they have your EIN/TIN they can kick out the 1099. So yes, the tax code in onerous and sometimes you have to pay to defend yourself due to no fault of your own.
I think that CPAs with access to the IRS system can see on the 1099s that were issued to you.
That probably exceeds my knowledge a bit. I just have 25+ years as an S Corp contractor with my head on a swivel watching to try and not get fucked too hard.
Sent from my Turbo 850 Flatbrimed Highhorse
They don’t know the document isn’t in your return just what is reported. If you report it as income you’re all good. You have a legal obligation to track and report all income whether you get documentation on the income or not. I know someone who got in pretty big financial consequences because a client messed up and didn’t send him a 1099. He then thought he could get away without reporting it. 2 years later the client company got a competent accountant who filed their back taxes and also filed 1099s. He owed the taxes, underpayment penalty, and interest.Quote:
Originally Posted by Rideski