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Showing posts from 2009

Do’s and don’ts for paying part-time employees

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Do’s and don’ts for paying part-time employees

Source:  The American Institute of Professional Bookkeepers; Bookkeeping Tips Newsletter


Do withhold FICA on part-timers, including retirees.

Even if someone who works for you part-time also has a full-time job where they have had 100% of their FICA withheld for the year, you must withhold the full amount of FICA from their pay. These individuals can obtain a refund of any overpaid FICA on their 1040. Similarly, if a retiree receiving Social Security benefits works for you, say, one day a week, you must withhold FICA.

Don’tassume former employees who return part-time are Independent Contractors.

If they do the same job they did before they left, especially in the same tax year, they are employees, not independent contractors.

Don't base worker status on length of service.

A worker who fits the definition of “employee” is an employee and all employment taxes apply—even if he or she works for you only for a few hours on only one …

Installing QuickBooks R9 - Update to New Version Window

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If you haven't installed the New Update R9 for QuickBooks 2009 yet, please note that you may get a window that reminds you that you are upgrading the product and asks for your acceptance before proceeding.  Just check the box next to the "I understand......" statement and follow the onscreen instructions. 

Note:  If you have multiple company files in QuickBooks, you will have to do this the first time you open each company file. 

Additionally, once your update is installed on one computer, you must do this on all computers that have that company file if you wish to work in the file from a different computer...office/home office, client/accountant, for example.


For more information about this update, I've reprinted my recent blog below.

Major QuickBooks 2009 Update

QuickBooks 2009 Release 9 (R9) Won’t Be Backwards Compatible with Earlier Releases of the 2009 Software

Intuit QuickBooks 2009 R9, going out live as an Automatic Update on December 1, has important improvement…

Free Tax Calendar From IRS

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Did you know you can get a Free Tax Calendar from the IRS? 

When you visit the IRS site, you can click on the tab below the picture to order the wall calendar. You can order up to 5 copies!
This is GREAT TOOL for bookkeepers and small business owners!

Check Social Security Numbers Online

Now you can verify current and future employee Social Security numbers online. Enroll online, then you can access the SSA site to verify employee social security numbers.  Save time, eliminate hassle, verify online!

EFTPS - Sign up to pay your payroll taxes online
Easy to sign up, easy to pay!  Great for managing cash flow....you can schedule future payments and pay online.




QuickBooksGal Tip:

Open a dedicated checking account and keep a minimum balance of $100 in the account.  Then a day or so before your scheduled tax payment, transfer the funds to cover that payment into the "Payroll Tax Checking Account". 

I prefer not to have outside entities accessing my primary business account.  I use a sep…

Major QuickBooks 2009 Update - Compatiblity Issues

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Major QuickBooks 2009 Update

QuickBooks 2009 Release 9 (R9) Won’t Be Backwards Compatible with Earlier Releases of the 2009 Software

Intuit QuickBooks 2009 R9, going out live as an Automatic Update on December 1, has important improvements for both Accountants and their clients. It is strongly recommend that both users apply the update.
However, unlike other updates in recent history, this update will not be backwards compatible with earlier releases of QuickBooks 2009.

This update includes recent changes to tax tables and forms for many states. QuickBooks 2009 R9 includes a patch to the underlying QuickBooks database that further improves data stability in significant ways.

Specifically, QuickBooks 2009 R9 will take advantage of a new Sybase SA10 patch.

While QuickBooks is already remarkably stable, Intuit estimates this patch will remove many remaining data issues in whole or in part.

The update will also improve speed of execution for heavy users, as well as improve performance…

Payroll Updates - Update or Manually Download

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Intuit QuickBooks Payroll has released Payroll Update 20922.

This update includes recent changes to tax tables and forms for many states.

Even if there are no updates to forms or tax tables for your state, Intuit is  always making improvements to your payroll product, so it's important to keep your software updated!

If you have Automatic Updates turned on and have selected all the updates to download automatically, your QuickBooks software should download and install the update for you.

If you do not have Automatic Updates turned on, you can still get this payroll update manually.

Thanks to the folks at Intuit for this timely "Heads Up"!






Got a QuickBooks Mess?  
Call The QuickBooks Gal!
775-348-9225
jayne@qbgal.com


Got Point of Sale?  Want Point of Sale?
Call Us
775-348-9200
qbdoc@qbdoc.com

New Printer Won't Print in QuickBooks?

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Have you recently purchased a new printer and found that it works in every program on your computer except QuickBooks?

You're not alone.  The fix is easy...simply follow these steps:

Go to the printer (under control panel)Right click on the printerSelect propertiesSelect the advanced tabCheck print directly to printer option
Voilayou can print!





Got a QuickBooks Mess?  
Call The QuickBooks Gal!
775-348-9225
jayne@qbgal.com


Got Point of Sale?  Want Point of Sale?
Call Us
775-348-9200
qbdoc@qbdoc.com


IRS & States Team up to Find Independent Contractors

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The IRS and the states know how tempting it is to classify workers as Independent Contractors because of saved employment taxes. 
That’s why Delaware and Wisconsin are targeting the construction industry with penalties of $1,000-$5,000 per violation. 
Other states such as Indiana and Nevada and Ohio are starting to share information on misclassified workers and similar violations. 
Expect your state to be watching you for misclassifying employees as Independent Contractors.
Determining a workers’s status depends on the facts that define both the entity and relationship of the entity to the worker at the time that the services are rendered. 
Here are the two categories of workers that the IRS and states are focusing on:
Common Law Employee - Works for and performs services under the control of the entity that pays for the services.
Independent Contractor - An individual in business for him-/herself whose services are free of control from the entity paying for the services.
Employment taxes app…

Changing Bank Accounts after You've Written Checks

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“I opened a new checking account, but ran payroll checks through the old checking account in QuickBooks.  
How do I fix them?”

 This is so easy to do....and the answer is simple...here's how.
Go to Reports->Banking->Check DetailIn the upper left hand corner of the report, select MODIFYSelect the date range and filter for the the bank account that you incorrectly posted the checks toReturn to the reportDouble-click on each check in the report to bring it up on your screenChange the bank account in the upper portion of the check form to the desired bank accountPress SAVE & CLOSE to complete the correction and return the to modified report
When the report is empty, you will have moved all the checks to the correct account.

Finally, double-check each bank account register to be sure that you have properly reassigned the transactions you wanted to correct.

Got Questions?  Call Us!

775-348-9225 Call The QuickBooks Gal!

775-348-9200 Point of Sale, 
Enterprise Solutions, QuickBase
jayne…

QuickBooks Scan and Deposit

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Have you heard about the new feature from QuickBooks called Check Solutions?

Save time and hassle: Skip the bank lines and start processing checks electronically.  Scan, Deposit, Done!

Features

Scan your checks with Intuit Check Solution for QuickBooks and eliminate almost all the time you spend depositing and accounting for check payments
Intuit Check Solution for QuickBooks provides two ways to process electronic checks depending on how your business takes check payments
Scan checks - if you receive paper check payments in the mail or in a drop off box, you can scan the paper check into QuickBooks. You can also take check payments over the phone with this option.Checks over the phone - take check payments over the phone and key the check information directly into QuickBooks.Save time depositing check payments
Scan up to 30 checks per minute, or accept checks over the phone and manually enter check info(no scanner required)Skip the bank: send your check payment transaction electronically,…

What IRS Auditors Look for When Examining a Business

Recently, a client asked me about the IRS and what they might look for in an audit.

* He keeps great records and is very careful not to "co-mingle" funds.
* All cash received is deposited to the company business checking account.
* And, in an effort to better control cash purchases, he has opened a separate bank account that he funds periodically from the business operating account.
* He then carries the ATM debit card for that account and makes "cash" purchases with that card.
* Additionally, all workers are either employees or licensed contractors.


I found a great article from Wells Fargo that I think provides a great check list for some of the most common issues the IRS may consider when reviewing a business file in an audit. Here is an excerpt from that article:

In the case of audit, be aware that the IRS training manual tells its auditors that they are examining you, not just your tax return.

The auditor wants to see how you match up with the income reported o…

Payroll - Getting Ready for End Of Year

It's time to start thinking about end of year procedures. One of those for me is verifying payroll to assure that there won't be any problems when it comes time to prepare W-2 forms.

There is a great tool in QuickBooks called the Payroll Summary Report.

You can find that in the Report drop down menu at the top of the main window in QuickBooks. From there, select Employees & Payroll and then select the Payroll summary.

You can use this report to review totals by employee and for your company. Additionally, you can review payroll-related liabilities & expenses by employee and grand totals for the company by date range or for the year to date.

I generally print this report every time I create a payroll and keep that report in my Payroll Book and I always keep a final year-end copy with my payroll records and employer copies of quarterly reports & W-2's.

I hope this tip is useful. Please tune in again for another QuickBooks Gal Minute.

Got a QuickBooks Mess? Call T…

Recording Foreigh Transactions & Foreign Currency Conversion

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Accounting for foreign transactions and foreign currency translation*

If your firm agrees to receive payment in a foreign currency, you record two transactions. 


Assume that your firm signs a sales contract with Toronto Co and will be paid $1,000 (Canadian) 30 days after it receives the merchandise. On the transaction (sales) date, the exchange rate is $1 (Canadian) = $1.15 (U.S.), so you record the following general journal entry: 

Accounts Receivable
1,150
            Sales
            1,150

To record foreign sales transaction (1,000 x $1.15) 

However, 30 days later the Canadian currency has weakened, and the exchange rate is now $1 (Canadian) = $1.10 (U.S.). That 1,000 Canadian dollars can purchase only 1,100 U.S. dollars, not the 1,150 U.S. dollars your firm budgeted to receive. Thus, your firm incurs a loss. On the settlement date, you must record two journal entries. 

Record the payment received and the $50 loss.

 Position in Canadian Dollars
1,100
Loss on Exchange
      50
      …