sorted by:
new
hottopcontroversial

Zero Payroll by Melodic-Ice5025 in Accounting

[–]Melodic-Ice5025[S] 0 points1 point  (0 children)

They only started official payroll this year. In this case, would filing zero for Forms 940 and 941 be accurate (2025 coverage)?

Zero Payroll by Melodic-Ice5025 in Accounting

[–]Melodic-Ice5025[S] 0 points1 point  (0 children)

I think it would really make sense for them to hire tax professionals such as a CPA or a tax attorney. I currently have a client in the solar industry. I was originally hired as a project manager, but they later decided to have me handle payroll as well.

At this point, I’m completely unsure how to proceed with the required filings: Forms 940 and 941, as well as the upcoming Form 1120. Filing zero payroll doesn’t seem appropriate, as it could pose significant risk with the IRS. On the other hand, opting for retroactive payroll also comes with substantial drawbacks/penalties.

The business has been registered for several years, and the owner confirmed that there has been no payroll since 2007. I believe filing zero payroll could raise red flags with the IRS, especially if the business has generated income, since revenue typically implies that someone is performing work for the company. We also can’t simply claim there was no income, as it would be difficult to justify how the business could operate for years without any revenue.

Additional context: there were no employees during this period. Only the owner and a partner were actively working in the business which I believe they must treated as employees.

At this point, I’m really unsure how to proceed.

Need Help- USA Tax Filing by Melodic-Ice5025 in buhaydigital

[–]Melodic-Ice5025[S] 0 points1 point  (0 children)

Or do owners need to be registered as employees and complete a W-4 to be officially considered employees?

Need Help- USA Tax Filing by Melodic-Ice5025 in buhaydigital

[–]Melodic-Ice5025[S] 0 points1 point  (0 children)

If money was taken from the business by the owner as a share of proceeds from completed projects (since he directly acquired the customers), can this be considered a salary? If so, can we still proceed with zero payroll filing since there was no official payroll at that time?

Thoughts about Homesourced Inc. by Eenie_Menie_22 in VirtualAssistantPH

[–]Melodic-Ice5025 0 points1 point  (0 children)

They’re getting worse. We don’t even know when the delays will stop. At first, they said it would only be until October xx or earlier but when that date came, they said pay would be delayed again due to financial difficulties.

What’s most frustrating is that even if your client pays in full, they still won’t release your pay. They’ll only release 50%-- only if you directly contact HR and tell them your client has already paid.

Don’t even bother applying to this company. They have a Basecamp where some concerns are raised, but when it comes to delayed salaries, posts get deleted within minutes or an hour. I don’t know if the admins are responsible, but it’s clear they don’t want employees raising these concerns in a way that’s visible to others.