Changes to the montly 941 Reporting and Taxes deposits.

[crazy^millman]

So I get this nice letter from the IRS stating we were notified last November than any taxes are now due Bi-weekly verse Monthly as we have done for years. I get paid one a month to help lessen the Payroll expense of being paid Bi weekly. It works out to 12 pay checks a years, but have lived this way for years so not been a problem. Now I have to pay our accountant twice what I was paying them to run Bi-Weekly Payroll. I was reading this wonderful letter and if your company has Payroll taxes exceeding $100k they are due the next day. There is no grace period and failure to pay the next day can result in a much as a10% penalty for not doing so. I also read they must be done electronically and failure to do so can also result in a 10% penalty of the taxes do if mailed in by check.

Here is the light reading of this wonderful stuff business are running into coming into 2021.    

https://www.irs.gov/pub/irs-pdf/n931.pdf">https://www.irs.gov/pub/irs-pdf/n931.pdf

[crazy^millman]

Here is the 941 to read.

https://www.irs.gov/pub/irs-pdf/i941.pdf">https://www.irs.gov/pub/irs-pdf/i941.pdf

Yeah all the free money isn't free folks.

Changes to Form 941 (Rev. July 2020) for coronavirus (COVID-19) related tax relief. The July 2020 revision of Form 941 will be used to report employment taxes beginning with the third quarter of 2020. Form 941 has been revised to allow employers that defer the withholding and payment of the employee share of social security tax on wages paid on or after September 1, 2020, to include the deferral on line 13b. Employers will now report on line 13b the total deferred amount of the employer and employee share of social security tax. Employers will also separately report on line 24 the deferred amount of the employee share of social security tax that is included on line 13b. See the instructions for line 13b for more information about the deferral of the employer and employee share of social security tax.

   

[neurosis]

Wow

[CNCAppsJames]

That seriously sucks.

[Zoober]

Welcome to centrist Democrap America.

[Leehound]

So I get this nice letter from the IRS stating we were notified last November than any taxes are now due Bi-weekly verse Monthly as we have done for years. I get paid one a month to help lessen the Payroll expense of being paid Bi weekly. It works out to 12 pay checks a years, but have lived this way for years so not been a problem. Now I have to pay our accountant twice what I was paying them to run Bi-Weekly Payroll. I was reading this wonderful letter and if your company has Payroll taxes exceeding $100k they are due the next day. There is no grace period and failure to pay the next day can result in a much as a10% penalty for not doing so. I also read they must be done electronically and failure to do so can also result in a 10% penalty of the taxes do if mailed in by check.

Here is the light reading of this wonderful stuff business are running into coming into 2021.    

https://www.irs.gov/pub/irs-pdf/n931.pdf">https://www.irs.gov/pub/irs-pdf/n931.pdf

It takes me about 15 minutes to make my 941 deposit every month and another 15 minutes for a quarterly report. So I would never use an accountant for something that I can easily do myself. I spend about $150.00 a year on software that keeps track of my payroll. I only pay for professional help at the end of the year for my taxes. If your a small business, you should be doing your own accounting. My 2 cents

[crazy^millman]

So I get this nice letter from the IRS stating we were notified last November than any taxes are now due Bi-weekly verse Monthly as we have done for years. I get paid one a month to help lessen the Payroll expense of being paid Bi weekly. It works out to 12 pay checks a years, but have lived this way for years so not been a problem. Now I have to pay our accountant twice what I was paying them to run Bi-Weekly Payroll. I was reading this wonderful letter and if your company has Payroll taxes exceeding $100k they are due the next day. There is no grace period and failure to pay the next day can result in a much as a10% penalty for not doing so. I also read they must be done electronically and failure to do so can also result in a 10% penalty of the taxes do if mailed in by check.

Here is the light reading of this wonderful stuff business are running into coming into 2021.    

https://www.irs.gov/pub/irs-pdf/n931.pdf">https://www.irs.gov/pub/irs-pdf/n931.pdf

It takes me about 15 minutes to make my 941 deposit every month and another 15 minutes for a quarterly report. So I would never use an accountant for something that I can easily do myself. I spend about $150.00 a year on software that keeps track of my payroll. I only pay for professional help at the end of the year for my taxes. If your a small business, you should be doing your own accounting. My 2 cents

For $90 a month to do it all and be accountable for anything on that side of the equation. I am totally good with that. They throw in the Business taxes as part of that $90 a month charge. One less thing for me to worry about and deal with. California makes it no fun to have a business where as where you are i can imagine things are much easier .

[JParis]

Hey, you're a "business guy" you've got it falling out of your pockets...

or so they think...

[gcode]

Hey, you're a "business guy" you've got it falling out of your pockets...

... because they cut the bottom out of your pocket

[Surface]

Wait an minute! You get paid?
I must be doing this 'business thing' wrong.

In seriousness, yeah, I feel for you.
I use a payroll company to take care of that aspect of my business.

Payroll withholdings and filings must be done to exacting standards. Failure to fully comply can result in fines larger than any savings of trying to do this stuff by oneself. For me, it just wasn't worth the risk of forgetting to file something.

[crazy^millman]

Wait an minute! You get paid?
I must be doing this 'business thing' wrong.

In seriousness, yeah, I feel for you.
I use a payroll company to take care of that aspect of my business.

Payroll withholdings and filings must be done to exacting standards. Failure to fully comply can result in fines larger than any savings of trying to do this stuff by oneself. For me, it just wasn't worth the risk of forgetting to file something.

Exactly. One year the EDD put liens on our Customers for Failure to pay them their slave money. No letter to us about the the issue just sent them all Liens to their business for failure to pay the EDD. The customers were pissed at me for not paying what had been paid. After 3 days of phone tag finally got a hold of the correct person and they looked and said oh yeah we see you did pay us we just forgot to collect it. That was another reason I got away from 1099 work. As a 1099 person in this state they could go after the company that hired you if you didn't pay them their part. By being a C Corporation no 1099 and no worries about EDD/FTB/IRS going back to customers trying to strong arm them for money. One mis file one mis step and fees and fines start compounding real quick. I have to pay $180 a month for Workers Comp and General Liability insurance that is required by many customers. To pay half of that and pass any issue related to this to a register CPA money well spent.

[gcode]

Years ago I showed up for work one morning and there were Federal padlocks on the door.
The Fed's had seized the business for failure to pay SS withholding and  Federal/State taxes  taken from employee paychecks.
Everyone's tool boxes were locked up and there was no getting them out.
It took me about 3 months to get my tool box.
2 years out of the USMC trying to get a job as a machinist with no toolbox didn't work too well.
Finally a small shop owner took me at my word and gave me a job.
30 years later that year still shows up on the report Social Security mails me on a yearly basis.
According to their records I did not work that year and paid $0 into my SS account.

[TylerBeer]

Aren't accounting fees deductible for C Corp?

[crazy^millman]

Aren't accounting fees deductible for C Corp?

Yes sir, but that is still money that has to be paid out and comes out of your profits.  

[CNCAppsJames]

What the vast majority of people don't realize is that a deduction doesn't produce a 1:1 benefit. A $100 deduction doesn't mean you're going to get refunded $100 more. It doesn't even knock $100 off the actual amount you owe. It only knocks off $100 from the gross income. It's probably $100 spent for a 1$ benefit. I haven't done the math in a while but it's not what as generous as "rich guys are evil" crowd thinks it is.