Jun 30, 2017
Which is better for you, Employees or 1099 Contractors? In the
world of the State and Federal Agencies. Someone who works for you
is either an Employee (on W-2) or a Subcontractor. You need to be
issued 1099 at the end of the year, and you need be able to prove
they are legitimate Subcontractors!
What we sometimes forget is the personal side of our life and do
not realize we have employees. Nanny tax is for any household
employees that you have for yourself, the obvious is the Nanny who
provides childcare. It also
includes a Housekeeper (unless using a licensed maid
service).
Reminder from Tax Accountants is the Elder Care market. If you have an individual who is caring for an elderly parent (they are subject to Nanny tax unless you are using a licensed service.)
Do you have support people? Are they making your life easier or
are they a risk to you and your Contracting Company?
Next step is what may seem like a nosy question. Does this
person have multiple clients? If anyone is working for Just You;
then the State Agency is going to say they are your employee.Once
the State Agency determines you have employees – Payroll taxes are
due.
Just a friendly reminder – State Agencies talk to the
IRS.
States across the country are explaining to Construction Contractor
that the person they hired as a 1099 Contractor is actually an
employee.
If neither of you wants to have them be an employee – then they
must have a business license, business cards, website, using an
outside bookkeeping service and anything else that shows they are
in business.
Each state is different regarding Contractors Bond, License, and
Liability Insurance. Some states want Contractors to start out with
a Handyman license (which restricts work based on dollar amount of
the invoice) and then moves up to a full contractor’s license.
In Washington State – Contractors are either a Home Builder,
General Contractor or a Specialty Contractor (Trade Contractor
which is limited to individual trades). Some occupations do not
require a contractor’s license. Another difference is whether a
Contractor must take a test to be licensed. Since Washington State
is a sales tax driven state (no income tax), Who is required to
collect sales tax?
Plumbing, Electrical require individual licenses which depending on
the state maybe receptacle with other states.
Temporary Labor. If you only need someone for a few days, it might
be better to use a Temp Agency.
The rule is that Casual Labor is $600 or less per YEAR. Sometimes
contractors think it is $600 per quarter.
If someone is paid more than $600.00, they need to be a W-2
employee on payroll or a subcontractor.
More states are adding more and more company paid benefits to
employees. The name of the benefit, definitions and each state’s
requirements vary. Smaller companies may be exempt from providing
some benefits. It is necessary to “Understand” which Paid Off
benefits are mandatory; the exact benefit name.
Paid Time Off may include one or more of these:
Detailed reports can help with Job Costing, billing. GPS feature can help properly route calls to save time and fuel. (Verify employee is where they are supposed to be)
Most employees have a Smart Phone and a data plan which allows
texting.
With an electronic timecard, employees can log in, clock in, change
jobs, tasks, clock out easily, quickly and efficiently. Get It Done
Now! Receipts can be uploaded immediately and turned into the
office later.
Better yet – No one has to read scribbled handwriting and
misspelled words will be reduced as spell check, or auto correct
software is an easily available and affordable app
everywhere.
With paper timecards “Buddy System” for clocking in and clocking
out may be a problem.
In restaurants going on break and forgetting to return can be an
additional issue.
Even the most productive employee needs processes and procedures to
feel secure.
Great Employees want to do a good job, want to be paid what they
are worth. It is unfair to the “Great Employee” when a “Bad
Employee” is abusing the system. Remember to do written coaching
reports.
In the most simple terms, a Paper timecard is all about trust that
the employee is where they are supposed to be when they are
supposed to be and the office can receive the timecard in a timely
fashion, be able to read the timecard, process the timecard and pay
the employee. Easy Right?
Summer time is here and hiring part time help is easy. Remember if
your part time help is Under 18-Year-Olds you need to register with
your state. The Under 18-Year-Olds have special Child
Labor Laws. Hours Worked Pay Rate
Types Of Worked that can be performed.
For every employee even for the Under 18-Year-Olds need to be on
payroll with taxes being withheld.
Contractors are so busy doing the work that regular paperwork is a
challenge. Keeping track of all of the HR (Human Resources)
functions is just another burden. Recommend using a 3rd Party
Payroll Service. Why? It’s Clean and Tidy. (One stop shopping for a
whole group of HR and Tax Services)
Many of 3rd Party Payroll Services have a built-in HR component. By
adding HR component, you may be able to add additional services
such as Medical, Dental, 401K. Depending on the level of service
the 3rd Party Payroll Service has electronic timecards, job
costing, prevailing wage reports.
The automatic items:
More states are requiring PTO (Personal Time off) Sick Pay
Vacation Pay Family Leave Time
Do you know what the individual rules are?
Do you know what minimum wage is?
Seattle has a higher minimum wage that the State of Washington.
Seattle requires PTO for employees traveling into Seattle on a
limited basis (example delivery drivers)
Across the country, other individual cities can be just as
challenging.
The Labor Laws when you were a new employee on that first job is
not what the rules are now.
Do you want to guess what the Payroll and Payroll Tax Rules
are?
The 3rd Party Payroll Services – know the employment and tax rules
for your state.
Why? State and Federal Agencies must talk to the 3rd Party Payroll
Services. You or me as individuals it is much easier to be given
the runaround. If you need help – they are there to help
you.
Depending on your situation Fast Easy Accounting provides payroll
services using Intuit’s Online Payroll
If you have more than a couple of employees; recommend working with
3rd Party Payroll Companies who knows “What To Do” when you
“Explain Your Situation.”
Our Favorite Payroll Processors:
Everyone is embracing Cloud Services. We are looking to improve
our services and processes every day.
Adding internal software to help us be more efficient and are
looking for a cloud-based software to help you be more efficient
and same time every day. What do 10 minutes cost you?
We Support QuickBooks Desktop Version In The Cloud.
Sometimes people get confused about our services of using
QuickBooks Desktop in the cloud and QuickBooks Online. The two
versions are not the same software.
Yes, In QuickBooks Premier Only - It has remote access feature as part of the software; however, only one user at a time may take control over one remote computer. A user must be physically present at each computer to set up a session. This is O.K. for training demos or financial presentations when speed is not important due to the lag time between pressing a key on the keyboard and waiting for the result to appear on the remote computer. Finally, it is very expensive in labor cost to use it for remote bookkeeping.
Some Missing QuickBooks Desktop Features - Are available through plug-ins if you have the time, skill and desire to maintain and update them; however many of them are not available.
None, No Difference - Because QuickBooks is hosted on a secure server, you will be using the same version of QuickBooks no matter where you log in. And in some cases, since you may see an increase in performance in your local computer since all the "heavy lifting" of QuickBooks is being done on a powerful server. Learn More...
Yes! You can absolutely use your Mac Computer! There is a simple download, and we have technical support available to assist you with getting it setup if you need help
You can print and email from QuickBooks just like you are doing now. The remote server will detect whatever printer you are using on your computer now, local or network printer, and it will print to it. You can change printers inside QuickBooks remote just like you are doing now and the remote server will print there. Everything is Fast and Easy!
Yes! You can download your company file anytime to create a backup copy on your local computer. QuickBooks Online does not offer this service.
With QuickBooks Hosting - You do not need to install or run QuickBooks on your desktop or notebook. QuickBooks, Word, Excel 2010 are all running in a web-browser, and the hosting company manages all software maintenance and upgrades, automatically.
The Hosting Company - Backs up the servers every night and that includes all your QuickBooks files and any Word, Excel, PDF documents you are storing in your account
We Use Whichever Company Best Fits Our Client's Needs:
QuickBooks Hosting Company Must Haves:
QuickBooks backup daily
Fast, reliable network equipment
Provides English speaking tech support
Provides results not reasons or excuses
Provides superior service and tech support
Technical support issues are addressed promptly
On approved list of Authorized Commercial Host providers
Paperless Hosting Company Must Haves:
Paperless documents backup
Fast, reliable network equipment
Provides English speaking tech support
Provides results not reasons or excuses
Provides superior service and tech support
Technical support issues are addressed promptly
This system removes the need to move the QuickBooks file back
and forth between the Contractor and the Accounting Office. All
transactions are in the “Live” QuickBooks Data File where everyone
has access to the information.
We move QuickBooks Online data file to QuickBooks Desktop. Once
QuickBooks Online Data File (QBO) is moved into a current copy of
QuickBooks Desktop, we can evaluate, update and cleanup the data
file.
We Do “A Little or A Lot”
depending on your needs.
Let us help you. By following
the system and providing documents to us, you are helping us help
you:
#1 EZ Step Interview inside QuickBooks Setup
#2 Asked Their Tax Accountant To Setup QuickBooks
#3 They Attended A How To Setup QuickBooks Class Or Seminar
Products that are “IIF file” work with other QuickBooks Desktop
Versions. All products are ready to use.
QuickBooks Files, Chart of Accounts and Item Lists are Instant
Downloads after your order is received.
Support available if needed to install on your computer or merge
into your existing QuickBooks File.
Every day being a Contractor is stressful trying to get everything
done that needs to be done.
Sharie
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com
When You Become A Client - Then we can tap into our resources of knowledge and strategy banks. We use the reports hidden in your QuickBooks in order to diagnose and understand your construction business and develop plans and help you implement a path to success for you and you alone because every contractor has unique Strengths, Weaknesses, Opportunities and Threats (S.W.O.T. Analysis) that when understood can lead to a Strategic Roadmap which cannot help but make a lot of money.
About The Author:
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com
#1 EZ Step Interview inside QuickBooks Setup
#2 Asked Their Tax Accountant To Setup QuickBooks
#3 They Attended A How To Setup QuickBooks Class Or Seminar
We understand the good, bad and the ugly about owning and operating construction companies because we have had several of them and we sincerely care about you and your construction company!
That is all I have for now, and if you have listened to this far please do me the honor of commenting and rating podcast www.FastEasyAccounting.com/podcast Tell me what you liked, did not like, tell it as you see it because your feedback is crucial and I thank you in advance.
I trust this will be of value to you and your feedback is always welcome at www.FastEasyAccounting.com/podcast
One more example of how Fast Easy Accounting is helping construction company owners across the USA including Alaska and Hawaii put more money in the bank to operate and grow your construction company. Construction accounting is not rocket science; it is a lot harder than that, and a lot more valuable to construction contractors like you so stop missing out and call Sharie 206-361-3950 or email sharie@fasteasyaccounting.com
Thinking About Outsourcing Your Contractors Bookkeeping Services?
Click On The Link Below:
This guide will help you learn what to look for in outsourced construction accounting.
Need Help Now?
Call Sharie 206-361-3950
Thank you very much, and I hope you understand we do care about
you and all contractors regardless of whether or not you ever hire
our services.
Bye for now until our next episode here on the Contractors Success
MAP Podcast.
Enjoy your day.
Sharie
About The
Author:
https://www.fasteasyaccounting.com/free-one-hour-consultation-bookkeeping
Sharie DeHart, QPA is the co-founder of Business Consulting And Accounting in Lynnwood Washington. She is the leading expert in managing outsourced construction bookkeeping and accounting services companies and cash management accounting for small construction companies across the USA. She encourages Contractors and Construction Company Owners to stay current on their tax obligations and offers insights on how to manage the remaining cash flow to operate and grow their construction company sales and profits so they can put more money in the bank. http://www.fasteasyaccounting.com/sharie-dehart/ 206-361-3950 or sharie@fasteasyaccounting.com
#1 EZ Step Interview inside QuickBooks Setup
#2 Asked Their Tax Accountant To Setup QuickBooks
#3 They Attended A How To Setup QuickBooks Class Or Seminar
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