Author Topic: any accountants out there that i can ask a question?  (Read 490590 times)

Offline Bh101

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Re: any accountants out there that i can ask a question?
« Reply #1100 on: September 01, 2016, 01:20:27 PM »
Regarding Insurance requirements, if one was denied Medicaid, but got approved for Medically Needy... (Kind of like a high deductible) is that considered having insurance?
will they provide a 1095? if yes its not a  problem.

Offline yoohoo

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Re: any accountants out there that i can ask a question?
« Reply #1101 on: September 06, 2016, 01:17:35 PM »
In regards to tax exemption for childcare cost, does it make a diff whether the payment comes directly from my payroll co. or if i write out checks myself and claim it after?  (in NJ)

Offline yitzf

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Re: any accountants out there that i can ask a question?
« Reply #1102 on: September 06, 2016, 03:35:17 PM »
In regards to tax exemption for childcare cost, does it make a diff whether the payment comes directly from my payroll co. or if i write out checks myself and claim it after?  (in NJ)

If it comes out of your paycheck you save on Social Security tax.

What do you mean by claim it later? I'm not sure how your payroll works but usually they withhold the amount and when you show them that you paid for childcare they release it to you, but you're the one who writes the check to the babysitter. If that's the case then you'll get all the benefits, but if you just pay the babysitter and claim it on your tax return then you'll only save on the Income Tax and not Social Security.

Offline yoohoo

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Re: any accountants out there that i can ask a question?
« Reply #1103 on: September 06, 2016, 04:06:08 PM »
If it comes out of your paycheck you save on Social Security tax.

What do you mean by claim it later? I'm not sure how your payroll works but usually they withhold the amount and when you show them that you paid for childcare they release it to you, but you're the one who writes the check to the babysitter. If that's the case then you'll get all the benefits, but if you just pay the babysitter and claim it on your tax return then you'll only save on the Income Tax and not Social Security.
tx. So the difference is ss tax. What i meant was the amount will be deducted from paycheck and a separate check will be made out to daycare directly from my work, so it never my income therefore not taxed at all

Offline yitzf

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Re: any accountants out there that i can ask a question?
« Reply #1104 on: September 06, 2016, 04:25:07 PM »
tx. So the difference is ss tax. What i meant was the amount will be deducted from paycheck and a separate check will be made out to daycare directly from my work, so it never my income therefore not taxed at all

If it's not hitting your paycheck at all then presumably you'll save on all payroll taxes (SS etc, Fed and State).

Offline yoohoo

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Re: any accountants out there that i can ask a question?
« Reply #1105 on: September 06, 2016, 04:39:02 PM »
If it's not hitting your paycheck at all then presumably you'll save on all payroll taxes (SS etc, Fed and State).
got u. Tx alot

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #1106 on: September 06, 2016, 06:04:22 PM »
got u. Tx alot
If processed as a benefit it will be pretax for federal purposes and taxed to NJ
If the company issues check to Daycare they may treat it as an expense and issue the daycare a 1099. then it wouldn;t be taxable to you at all

Offline yoohoo

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Re: any accountants out there that i can ask a question?
« Reply #1107 on: September 06, 2016, 06:26:15 PM »
If processed as a benefit it will be pretax for federal purposes and taxed to NJ
If the company issues check to Daycare they may treat it as an expense and issue the daycare a 1099. then it wouldn;t be taxable to you at all
isnt there an allowance for child care, Not having anything to do with it being a business expense for my employer?

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #1108 on: September 07, 2016, 10:28:13 AM »
isnt there an allowance for child care, Not having anything to do with it being a business expense for my employer?
$5k if it's a benefit (per employee)

Offline AnonymousUser

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Re: any accountants out there that i can ask a question?
« Reply #1109 on: September 12, 2016, 09:28:10 PM »
The IRS 1040-ES has an exemption that if the previous year's tax liability was 0, you don't need to file quarterly 1040-ES for 2016.
Does NJ-1040-ES have the same exemption? I don't see it anywhere (NJ-1040-ES, GIT-8).

Offline Buruch

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Re: any accountants out there that i can ask a question?
« Reply #1110 on: September 16, 2016, 04:58:41 PM »
If it is set up as a small group plan, the employer can either pay for the premiums, or set up a Section 125 cafeteria plan and allow employees to pay the premiums with pre-tax dollars. This can be done regardless of whether the employee selects "employee only" "employee+spouse" "employee+children" or "family" coverage.

If the employees purchase the coverage on their own, outside of the business setting, there MIGHT be a way to legally reimburse them for it as a business expense, but it would probably require setup of an HRA (Healthcare Reimbursement Account) which would be specifically set up to allow health premium reimbursement, or some kind of other setup that might allow it (I don't know, and doubt whether it's worth the hassle and expense for just one or two employees).

In NY, unless you want to take subsidies (which many people don't) whenever you have a choice you are much better off doing it as a small business group.

So, to continue an old conversation..
I looked into it some more, and it seems an HRA is the way to go, and it can be pretty simple to set up. I found a company online coredocuments.com that sets it up for you for $150. It can save me 2-3k per year. in fact, iiuc, it's only really feasible if you have only 1 employee (or more if they're all family).

Anyone have experience with an HRA?

Also, I'd like to do an FSA for dependent care in an scorp where my father is the owner, and I'm the sole employee. Anything I need to be aware of, or just simply set it up, and do I get to avoid FICA?
« Last Edit: September 16, 2016, 05:57:03 PM by Buruch »

Offline Yehuda25

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Re: any accountants out there that i can ask a question?
« Reply #1111 on: September 22, 2016, 04:57:31 PM »
Someone owes me a decent sum of money. He would like to sell some points, then have the broker pay me direct vs him giving me a check.

This is not a loan that's recorded anywhere kinda thing.


Is it better for tax purposes to have the borrower give me a check directly?


TIA!
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Offline Yehuda25

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Re: any accountants out there that i can ask a question?
« Reply #1112 on: September 23, 2016, 12:22:28 PM »
BUMP?
“To avoid criticism say nothing, do nothing, be nothing.”


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Offline ckmk47

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Re: any accountants out there that i can ask a question?
« Reply #1113 on: September 23, 2016, 03:40:39 PM »
BUMP?
Since it's not recorded officially, does it matter where you get the check from?  Either way you're getting in a lot of money for no apparent reason.   
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Offline Bh101

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Re: any accountants out there that i can ask a question?
« Reply #1114 on: September 23, 2016, 03:55:39 PM »
BUMP?

can u trace the money going from u to him?

Offline Yehuda25

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Re: any accountants out there that i can ask a question?
« Reply #1115 on: September 23, 2016, 04:02:05 PM »
can u trace the money going from u to him?
not really, I paid his CC bill for him.
“To avoid criticism say nothing, do nothing, be nothing.”


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Offline Bh101

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Re: any accountants out there that i can ask a question?
« Reply #1116 on: September 23, 2016, 04:05:11 PM »
not really, I paid his CC bill for him.
bad move, but u are allowed to receive gifts totaling 14k per year

Offline Yehuda25

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Re: any accountants out there that i can ask a question?
« Reply #1117 on: September 23, 2016, 05:10:48 PM »
bad move, but u are allowed to receive gifts totaling 14k per year
it's family, but ok, I guess I can always say its a gift.
“To avoid criticism say nothing, do nothing, be nothing.”


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Offline ckmk47

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Re: any accountants out there that i can ask a question?
« Reply #1118 on: September 24, 2016, 11:01:55 PM »
not really, I paid his CC bill for him.
That's traceable in  my book. (I'm not an accountant.) If (ch"v) you get audited, you can show why you got the money from him. So I don't think it matters where the check to you is from.
« Last Edit: September 25, 2016, 12:21:47 AM by ckmk47 »
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Offline A3

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Re: any accountants out there that i can ask a question?
« Reply #1119 on: September 24, 2016, 11:06:40 PM »
Just make sure they put his name in the memo.