Posts

Showing posts from December, 2009

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

Image
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

Image
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

Image
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…