Business. Money. Life.
You can get Social Security credits as a W2 Employee! When you are an active shareholder with a W2 wage through your company you can obtain qualifying Social Security Credits! The salary needs to be at least $4880 per calendar year, (this changes each year) you can build up your Social Security credits for retirement. […]
Business is about making money or is it? Business is about image or is it? Business is about selling more or is it? Business is my life or is it? Business is about the product or is it? If your why doesn’t matter then neither does your business. Your business should serve you and your […]
Income and Expense through W2 wage When you are an active shareholder with a W2 wage through your S-Corp it becomes personal income and a business expense. Your salary must be reasonable compensation, you can utilize then benefit of being an employee through your corporation or LLC. “How does this work” you ask? It’s actually very […]
The answer is very simple, you need a CPA whenever you need to convince someone else; like a banker, investor group, or the government that your accounting system produces accurate, reliable information in the opinion of an independent expert who is not your regular accountant or accounting department. Did you catch that? You need a […]
1099 Your Subcontractors When hiring a subcontractor to do a job for you, you will need to issue them a 1099 for all services over $600. Some people hire a construction contractor, plumber, landscaper, and electricians. All of these professionals should be issued a 1099-Misc for services completed and paid. Each new contractor must fill out […]
You can get reimbursed for Medical Expenses! This is an expense to the business which brings down the taxable income for the company. The payroll that is issued is not subject to Social Security and Medicare tax so the company saves on payroll taxes each year. In turn, you get reimbursed for your medical expenses through your […]
If you use your vehicle for business purposes you can either deduct the actual cost (gas receipts) or you can deduct the miles. The IRS does not allow you to do both, using both methods could result in an audit. In both cases you will need to figure out the percentage of use for business […]
Owning an S-Corp can seem confusing as to how you get paid. Properly utilizing the benefits of your corporation could potentially save you thousands of dollars in taxes. There are steps to take in order to be properly compliant with the IRS. These steps are: Become a W2 employee with reasonable compensation (Read our previous […]
You’ve been in business several years now and you’re somewhat successful. Sales keep rising, profits keep rising, and you are thinking about adding on additional services. Why? Too make more money! Is that really the way to go? What is your mission, what is your focus? Too make money? What is really important is to […]
Sometimes it can be difficult to know what forms are needed when hiring a new person for your business. You must use either one of two forms, a W-4 or a W-9, depending on whether you are hiring a new employee or an independent contractor. If you are hiring a new employee, you must have […]