JohnnyD

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Posts posted by JohnnyD

  7. Quote


    It sounds like they hoped small business would not keep up and then they would be fined, for the revenue!

    Matt



    Income reporting (or lack thereof) in small businesses is on the IRS hit list for 2010. The 1099 reporting requirement was supposed to be a way to match up revenue.

  8. Quote

    Dude, you need to change your attitude. If you behave anything in real life like you behave on here, you have a lot of growing to do. Take a break from dating and see a therapist for some self improvement. Get to like who you are, and someone who likes you will find you.

    Of course, what do I know, I'm just a psychiatrist.



    edit: pass

  9. Quote

    I set up a sub-S corporation a few years ago to protect myself when teaching Scuba. It cost about $100 bucks to do in Ohio. The down side is in order to be protected by the 'corporate veil' you must follow strict procedures or the veil can be easily pierced. Any funds received from the DZ would have to be paid to the corp. Income from the corp would transfer through via K1. If you are a Doctor, all of this is probably pretty familiar to you.
    I kept the corporation alive for 8 years, then realized the chances were slim enough that I wouldn't be successfully sued in an assumed risk sport if I taught correctly.


    Of course with an S-Corp you also have the added burden of W-2 wages and payroll tax returns.
    LLC is the way to go.

  10. Quote

    I think tower climbers would make for a kick ass tv show. Way better than "Ice Road Truckers".


    Been done - don't remember the name of it, but it was about the owner of the company. Pretty interesting from the aspect of being the employer.

  13. Quote

    Quote

    Two words - coach rating



    Are you noting it's the problem or the solution?

    Problem - giving away an "instructor" status at such a potentially infantile time in the sport shores up egos for those that haven't earned it?

    Solution - provide a organized means of training via the newbie coaches that "should" be trained to help or at least find the right kind of help for even newer jumpers


    More often than not, Problem.

  15. Quote


    I don't care. I just like engaging in discussions when I feel I have a vaild point. Yes what he did was wrong and now he's paying the price. End of story. Hopefully he doesn't do it again.


    I think the discussion is at least reasonably important to the community as a whole because we do deal with the rules of independent contractors all the time (although not in this case) and specifically to the employees/contractors/jumpers at Start who may be directly affected by it.

    By the way: I'm right.:P

  16. Quote

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    Or Hart could have issued a check to the employee for $1500 instead of their net amount of $1000. In essence not withholding. That is the part that is not clear. I don't know what the tax code says in regards to that but I do know I've seem some even more obviously incorrect accounting practices with surprising results.


    That would be a case of improperly classifying employees as independent contractors. According to the newspaper articles, that is not what was happening.

    ETA: Your profile says you are a CPA. How in the world you you need this to be explained to you?


    Yes I am a CPA. I'm also right and you are wrong. Read the court document I posted.;)

    Ask yourself these questions:
    1. What is the company's date of inception?
    2. What is the period under examination?
    3. In the period under examination, was positive cash flow attained by criminal means?
    4. If it was, how and what was it used for?
    5. What was the end result for the employees?
    6. What was the end result for the employer?

  17. Quote

    Ok, I take that back! Here is a summarized court doc. It states he failed to "WITHHOLD money form employees' checks." So his employees were getting paid more than they should have. Hart also used corporate funds to fund skydiving, which is a separate issue not related to the taxes. He didn't withold taxes so none were used to pay for skydiving.

    The interesting part is the last quote "As a result of these actions, SMS employees were not credited with the taxes that were supposed to have been applied". That seems to imply witholding but not crediting. But the document clearly says he failed to WITHHOLD. Interesting.



    The employees weren't credited because the PRT returns weren't filed.

  18. Quote

    So we have a lot of theories but little real data -- we really need court documents etc and not short media articles.

    We've seen it argued that he might have "collected" no taxes and passed everything on to the employees, or he might have collected all the taxes and not passed them on to the government.

    Another theory is one in between:
    He collected some taxes etc (so employees would see deductions on their paychecks and think all is OK), but wasn't collecting enough, and passed that too small amount to the gov't. All the rules on taxes & deductions at federal and state level can't be simple, and maybe even misinterpreted, so one could envision a company making a mistake.

    I have no idea which theory is right, whether the errors were inadvertent or deliberate, but I think that's another possibility to consider.


    This is definitive and a direct quote.
    http://www.middletownjournal.com/news/middletown-news/team-fastrax-owner-accused-of-failing-to-pay-taxes-583379.html

  19. Quote


    Or Hart could have issued a check to the employee for $1500 instead of their net amount of $1000. In essence not withholding. That is the part that is not clear. I don't know what the tax code says in regards to that but I do know I've seem some even more obviously incorrect accounting practices with surprising results.


    That would be a case of improperly classifying employees as independent contractors. According to the newspaper articles, that is not what was happening.

    ETA: Your profile says you are a CPA. How in the world you you need this to be explained to you?

  20. Quote

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    Did a quick search of the newspaper stories to see which scenario was at play - either improperly classifying employees as independent contractors or failing to remit payroll taxes.

    It's pretty clear that there was a failure to remit payroll taxes.

    For the employees, it's highly unlikely that they would have had any idea what was going on. As far as they know they cash their paychecks, file their tax forms and go on with their lives. They will not be penalized in any way for the crimes of their boss.



    I understand that part, his failure to remit taxes. However, it is not clear on whether he actually collected those taxes from his employees. The articles say he did not, that he failed to collect as well. But then again it may just be sematics on that part. I would just like some evidence that he either did not collect and the employees knew he was not collecting or Hart messed with their paychecks so the employees thought taxes were being withheld. That is the part that is not clear from the articles.


    It's just semantics. The employer doesn't actually "collect" payroll withholdings from employees. The employee gets a paycheck for $1,000 (using very round numbers here), which is a net amount. The employee's gross pay is $1,500. $500 is withheld for FICA/Medicare/Federal Withholding/State Withholding by the employer, who issues a check for $1,000. The employer has the responsibility to remit those withholdings. In this case, the employer just kept the money and now he will go to prison for that.

  21. Did a quick search of the newspaper stories to see which scenario was at play - either improperly classifying employees as independent contractors or failing to remit payroll taxes.

    It's pretty clear that there was a failure to remit payroll taxes.

    For the employees, it's highly unlikely that they would have had any idea what was going on. As far as they know they cash their paychecks, file their tax forms and go on with their lives. They will not be penalized in any way for the crimes of their boss.

  25. Quote

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    You've got to be kidding. Letting him get back on his reigns? It's a chore? I don't even know how to respond to that.

    When your dude is old and crushing Viagra like it's candy maybe you can look over and say - remember when my friend wanted to come over and fuck us both all weekend and you were too much of pussy? Bet you wish you could have that one back.



    1+ (BTW, what is wrong with my friend Viagra?):D

    Nothing at all. Just pointing out that youth is often wasted on the young.