Talking with TaxSpeaker: Video 109
1. You mentioned dropbox as a server in the class. In an office with 4-5 computers, do you install dropbox on each computer/workstation, or do you have one computer with dropbox on it and the other computers pointed at the one?
2. We have a client that hasn’t used any credits. The client is eligible to claim the employee retention credit but since they didn’t use any credits they have the refundable and nonrefundable available. They paid in all of their required 941 tax deposits. How do we fill out the 941 with this? How do we claim a refund on the total amount if a portion of it is “non-refundable”?
3. I am looking at purchasing software for DMS. Have been looking at a product called FileCenterDMS. Any negative comments? It appears to do all that I need to do. Was using the Lacerte DMS but need to replace. Thank you
4. One of our clients is a dentist and was required to close his office due to COVID. He was not required to pay his employees sick leave, but did so anyways. Would he still be eligible for the sick leave credit?
5. Regarding your first question about filing protective refund claims for Medicare and NIIT tax if ACA ruled unconstitutional, you mentioned 2016 was gone. However, if you didn’t file your 2016 return until extended due date of 10/15/17, wouldn’t 2016 still be in play?
6. What software do you recommend to file Payroll taxes? I am currently referring my clients to ADP for their payroll needs and it's not working out for the small s corp clients so I"m considering doing it on my own.
7. 3508EZ Form…My question was on the part where you list pay period. What happens if you pay your employees on a weekly basis and you pay the S-Corp. officers on a monthly Salary. Can we mark both boxes ?
8. What would the effect on forgiveness be if a business that received a significant PPP loan ( $1Mil) had mush higher income during the same period in 2020 as 2019?
9. I do not understand how a borrower can apply for foregiveness before the covered period closes. This may be possible in some cases, but in most cases, wouldn’t be necessary for the covered period to close before determination of FTE count and also the calculation of whether salary has declined by 25%.
10. IRS has announced that expenses which qualify for foregiveness are not an allowable deduction. How are the expenses allocated when some of those qualifying costs are attributable to owner or partner earnings? For example, loan foregiveness is $100,000, and over 24 weeks, there are two partners that are paid qualifying earnings of $20,000 each; salaried employees are paid $160,000. What is my nondeductible expense. Any reason not to allocate $40,000 to the partners(that is not a deduction but it is a qualifying expense?) and then allocate $60,000 as nondeductible wages? Any idea how this is supposed to work?
11. I just finished watching the Webinar on the 3508EZ. Bob said that you can only opt for the alternative covered period if you had Weekly or Biweekly payroll. However, one of our clients has Biweekly payroll for 5 employees and monthly for 3 employees. Can one use the Alternative Payroll Covered Period?
12. PPP Forgiveness: Short form 3508EZ. I have an S corp shareholder(the only shareholder) whose W-2 was $20000 in 2019. Are they limited to $4,167 in forgiveness. That is what appears to be the case on page 2 of the 3508EZ instructions regardless of whether they select 8 or 24 weeks. ($20000/12*2.5)
13. In the “Completing New SBA Form 3508EZ” seminar Bob presented, one of the conditions stated in the seminar and manual to use the EZ Form is that the employer did not reduce salaries, hours or number of employees by more than 25%. Isn’t that condition actually that the salary or wage rates were not reduced by 25%, but the condition for number of employees or hours reduction is that there was not a reduction from January 1, 2020 through the end of the covered period, and not a 25% threshold?
14. With the proposed changes for Health Sharing Ministries do you believe that if the deductible is high enough would they be able to contribute to Health Savings accounts? Also do the payments qualify as self-employed insurance deductions or is this change only for Schedule A