Account Sense PLLC can provide you with the accountant you need to do your regular accounting, such as invoicing, paying bills, bank reconciliations, monthly reports, and more. We are your part-time, internal accountants. Whether you need help on a weekly, monthly, or quarterly basis, we’re here to serve your bookkeeping and accounting needs.
Whether you’ve started a new business, or need help organizing your existing business, Account Sense has Certified QuickBooks ProAdvisors available to help your business stay up to date on it’s financial reporting requirements.
Our bookkeepers are Certified QuickBooks ProAdvisors. We have several years of experience with QuickBooks software and can help your business get started on the right foot. We can set up your chart of accounts, help with QuickBooks invoicing and help design an invoice template, and help populate your vendor and customer lists. We can also help you setup your QuickBooks payroll.
Do you want to do your own bookkeeping, but don’t know where to start? Give us a call, we’ll help you get setup and show you how to use the QuickBooks features you need. We can even turn off the features that aren’t applicable to your business. As always, our Certified QuickBooks ProAdvisors are only a phone call away and we may be able to help you with your questions with a quick phone call.
Account Sense PLLC can assist with most small business payroll needs. We can help you setup payroll within the QuickBooks payroll module. We can also prepare your monthly and quarterly payroll tax forms, including: Federal Forms 941, 944, and 940, Labor & Industries Worker’s Compensation Report, Employment Securities State Unemployment Report. We can also assist with end-of year Forms W-2 and W-3.
Independent Contractor or Employee? There are many differences between independent contractors and employees. And, they are treated very differently for income tax purposes. Click here to find out the differences.
The State of Washington has two types of taxes that must be reported on a monthly/quarterly/annual basis to the Washington Department of Revenue. The one that most people are familiar with is the sales tax. As a business owner, you may be required to collect sales tax from your customers and remit those taxes to the state. The other tax is a tax on the gross receipts of your business. It is called the Business & Occupation tax and is required of all businesses. There are several categories with different tax rates, depending on your business activities.
Account Sense PLLC can complete your B&O and Sales Tax Report for you. This can be done with paper forms, or by e-filing.
If you have a business, you are responsible for reporting and paying taxes on the personal property that you own. Most of you are familiar with the property taxes we pay on our real property, but few are familiar with the tax on personal property.
These taxes are assessed by the county where the property is located. If you have started a new business, you may need to contact the county where you’re property is located so that they can provide you with the initial Personal Property Tax Return.
What is personal property? This can vary by county. But, basically it is the furniture and equipment you use in your business. It is not the inventory that you sell, but the items used in your business.
Account Sense PLLC can prepare your Personal Property Tax Return. We’ll just need to discuss the items of personal property used in your business. Often it is easiest to do this while preparing your income tax return because they report similar information.
According to IRS rules, every person engaged in a trade or business, including nonprofit organizations, must file 1099 forms for certain payments made during the year in the course of the payer’s trade or business. Here are some of the most common forms and their filing requirements.
Required to report interest payments of $10 or more by financial entities; $600 or more by your trade or business.
Required to report dividend payments of $10 or more; $600 or more for liquidations.
Required to report any proceeds from broker and barter transactions.
Required to report distributions of $10 or more from retirement or profit-sharing plans, IRAs, SEPs, annuities, or insurance contracts.
Required to report proceeds generally of $600 or more from real estate transactions.
Required to report cancellation of debt of $600 or more.
Required to report miscellaneous payments generally of $600 or more; $10 or more for royalties; any amount for fishing crews.
Form 1099-MISC is the form most frequently used by small businesses to report a wide variety of payments, and it is probably the 1099 that causes the most confusion. Here’s what you need to know.
A Form 1099-MISC is used to report payments for services provided to your business by unincorporated vendors when those payments total $600 or more for the year. Typical payments include rents, royalties, and compensation to independent contractors, such as consultants, web designers, accountants, lawyers, and cleaning services.
The IRS has set out five conditions for payments that must be reported using Form 1099-MISC. All of the following five conditions must be met:
1. The payment was made to a nonemployee.
2. The payment was made for services provided to the trade or business.
3. The payment was made to an unincorporated entity (except for payments to attorneys and medical and health care payments).
4. The payment or payments generally totaled $600 or more for the year.
5. The payment was not made electronically (e.g., with a credit or debit card or with PayPal).
January 31 – One copy of the Form 1099 must be given to the recipient of the payment by this date of the year following payment.
February 28 – One copy of the Form 1099 must be sent to the IRS by this date of the following year unless the filing is done electronically.
March 31 – If filing is done electronically, this is the deadline for providing the IRS copy.
NOTE: Though all businesses are encouraged to file electronically, it is required for businesses filing 250 or more returns.
The penalties for failing to file Forms 1099 range from $30 to $100 per form, depending on how late your filing is and whether or not the failure to file was intentional. Total penalties can go as high as $500,000 for businesses with gross receipts under $5 million or $1.5 million for those with gross receipts over $5 million.
The IRS has increased its scrutiny of 1099 filings. In its efforts to increase 1099 filing compliance, it now asks the following two questions on business tax returns:
1. Did your business make any payments during the year that would require it to file Form(s) 1099?
2. If “yes,” did the business file or will it file required Forms 1099?
1. The Affordable Care Act of 2010 (ACA) included expanded reporting requirements that, although they have since been repealed, still lead to a lot of confusion. The ACA provision would have required Form 1099 reporting for payments made to corporations, as well as those to unincorporated entities. It also would have required landlords to file 1099s for rental-related payments to any provider for services totaling $600 or more for the year. Both of these requirements were repealed in 2011, which leaves 1099-MISC filing required only for payments to unincorporated vendors and no expanded filing required of landlords. (See #4 below.)
2. If you receive a 1099 with an incorrect dollar amount, request a corrected copy from the payer before tax filing time.
3. Only trades and businesses are required to report payments made in the course of the business on Form 1099. Personal payments are not required to be reported. (For example, a business owner who pays a dentist $1,500 for dental work on his daughter does not need to report that on a Form 1099.)
4. Payments of $600 or more to attorneys must be reported on a 1099-MISC, whether they are incorporated or not. Also medical and health care payments made to corporations must be reported.
5. Payments to vendors by credit or debit card, or by services like PayPal should not be reported on a 1099. The bank or third-party payment provider is required to report those transactions on Form 1099-K.
6. Nonprofit organizations are considered to be “engaged in a trade or business” even when they don’t operate to generate a profit. They are, therefore, subject to the Form 1099 filing requirements.
7. The fact that payments may not have to be reported on a 1099 does not mean that the payments are exempt from income tax. The recipient of the income must still report it on his or her income tax return.
8. To issue 1099s, a business needs the recipient’s “taxpayer identification number” and a mailing address. Generally, this information is obtained by sending the recipient a Form W-9 requesting what is needed. If the recipient fails to provide the necessary information, the business may have to withhold taxes from payments and remit these amounts to the IRS.
For additional information about the 1099 filing requirements that apply to your business, contact our office.