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Fields Bookkeeping Services Newsletter |
Greetings!
Welcome to the May 2010 newsletter for Fields Bookkeeping Services. After that fantastic winter, spring has finally arrived. Are you taking care of any spring cleaning chores for your business? As you can see, I have started e-mail marketing with Constant Contact. If this is something you might like to try, let me know and I can help get you started. Are are doing anything new and exciting? Drop me an e-mail and I'll share it with the group. Thanks. |
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How Important is S Corp Payroll?
 If you have a business that is a S Corp, now is the time to start payroll for yourself and your employees. Some advantages of S Corp payroll are: 1. Not having to pay self-emloyment tax 2. Employer side of payroll taxes is an expense to the corporation 3. 401K individual plans can easily be run through payroll, as can medical plans in the business name 4. There is always a question of what is a "reasonable wage" for a S Corp owner. Check with your CPA to confirm your thoughts on what the "reasonable wage" should be. HINT: It's not minimum wage nor is it excessively high. |
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QuickBooks Tip 
Question:
I have just hired my first subcontractor and I need a way to track her fees in QuickBooks for 1099 purposes. How can I do that?
A question I get fairly often. First you will have to enter the subcontractor name and address in the vendor card. In the vendor card under additional info, check the box "Vendor Eligible for 1099" and enter her social security number or tax ID. Next you will have to edit, preferences, 1099-tax, company preferences and click on the account down arrow next to box 7 and make sure the account where the subcontractors fees are is included here. At the end of the year run the Report, Vendor 1099 Detail and confirm all your payments to her are captured on this report. Call if you have any set up or reporting problems. |
