Tag: Payroll Taxes
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Bookkeeping – Auto Costs Related to Owners and Family Members (Lesson 62)
The Internal Revenue Service scrutinizes expenses that can and often are benefits to owners. The most common benefit is the use of a company owned car for personal travel including using the car to get to and from work.
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Bookkeeping – Quarterly and Annual Payroll Reports (Lesson 34)
Federal and state compliance requires the filing of several different reports by certain deadlines. In this lesson I explain the various reports, filing deadlines and best practices to comply with the law. I’ll explain the quarterly set of reports first then the respective annual requirements.
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Bookkeeping – Payroll Compliance and Documentation (Lesson 33)
The key to success with payroll accounting is properly documenting all aspects of payroll thus complying with the various legal requirements.
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Bookkeeping – Payroll Cycles (Lesson 32)
Similar to the bookkeeping cycles, payroll cycles have many frequent activities, fewer incremental requirements and one important end of the year report. This lesson explains these respective cycles and how they tie together for the final year-end report. Other lessons in this section of the website go into some details about various functions of payroll…
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Bookkeeping – A Simple Payroll (Lesson 31)
In Lesson 30 I explained the payroll account structure using parent-child accounts. This lesson is a part of the daily operations section of bookkeeping illustrating an actual payroll entry. If you haven’t done so yet, please read: Payroll – An Introduction.
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Bookkeeping – Payroll Structure (Lesson 30)
Every bookkeeper needs to understand how to process a payroll. This is one of the many regular tasks in the bookkeeping cycle. In this lesson I’m going to illustrate a payroll structure as it pertains to the chart of accounts.
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Bookkeeping – Accounting Cycles (Lesson 29)
The bookkeeping cycle is like a huge giant clock with several dozen gears from a multiple cog gear rotating the most frequently turning cog cascading into the one large gear that once turned changes the timer one year forward. The bookkeeper’s job is to make all the gears click and keep the system lubricated. At the…
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Owner Compensation in an S-Corporation
One of the tax attributes of an S-Corporation over other forms of tax entities is the ability to reduce the overall tax obligation. Naturally the lower the overall tax requirement the more profit generated for the owner(s). The S-Corporation allows an owner to reduce their tax responsibility via the compensation package assigned to the owner.
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Booth Rental – Legal and IRS Compliance
A long standing custom in the hair salon industry is owners of salons leasing out booths to hair stylists. If not properly documented and exercised appropriately, the owner opens the door for many legal issues. Booth rental has both legal and IRS compliance issues that need to be addressed. Booth rental is legal in many states but…
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Payroll – Introduction to Basic Concepts
Payroll is envisioned as the simple employer employee agreement related to compensation for services. I often think of this as the simple handshake whereby the employer agrees to pay the employee a set rate per hour of work. This was true a hundred or more years ago, but over time; history and governmental regulations complicated this…