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Accounting, Payroll & Pension Issues/Questions Answered by Expert Arthur Naman
| Subject | Date Asked |
| which career? | 12/22/2011 |
| Q: I am a student a Acca. (Association of chartered certified Accountants) What are the career options ... A: I encourage you to seek advice from a career counselor. This is not a good forum for this question. ... | |
| Building Improvements | 11/16/2011 |
| Q: I work for an S-Corp where the owner is buying a building (he is setting up an LLC for that) and he ... A: The answer is not clear because normally there would be an agreement as to what improvements are to ... | |
| How to Classify | 11/14/2011 |
| Q: The company owner gives his elderly mother a weekly gift of $125 and I want to be sure that I am ... A: This is an owner's expense and should be recorded as such. This is not an expense of the company. ... | |
| accounting Q. | 10/22/2011 |
| Q: I have a question on journal enteries. I work with invoice processing and we are told to tell our ... A: Accounting transactions are categorized and summarized by use of a general ledger code. A journal ... | |
| mandatory direct deposit for independent contractors working for a company in MN | 9/4/2011 |
| Q: I work as an independent contractor for a medical transcription company located in MN. I live in a ... A: I am not aware of any rules pertaining to your situation. Since you not an employee you may not be ... | |
| LLC accounting question | 8/18/2011 |
| Q: How should an LLC's preferred units buy-back discount be accounted for? The company I work for is ... A: The P&L generally is not affected by transactions involving stock. By "discount" I presume you mean ... | |
| studio write off | 7/2/2011 |
| Q: I am a professional artist presently working out of my home and selling through galleries. I am ... A: I cannot see any reason why you should not be able to do as you intend -- to treat a residence as ... | |
| LLC Accounting | 7/1/2011 |
| Q: I am working with an owner of LLC (temporary employment agency)that has been in business for 2+ ... A: Regarding reporting on the balance sheet, please consider an accrual to cash entry. That will take ... | |
| LLC Accounting | 6/17/2011 |
| Q: I am working with an owner of LLC (temporary employment agency)that has been in business for 2+ ... A: My apologies; I thought I had answered this, but I obviously have not. You mentioned he is a sole ... | |
| profit sharing. | 5/17/2011 |
| Q: I am 71 years old, I went to my fomer employer to ask for my profit sharing. I am told that my ... A: The withholding at the time you receive the distribution is 20% default. I believe you can request a ... | |
| Asset written off | 4/28/2011 |
| Q: Our office had throw away the furnitures, may I know that a/c entry below correct or not : -- Dr. ... A: I am confused by several things you have written. * What is "RM" as in "RM 2289.41"? * What does ... | |
| Asset written off | 4/25/2011 |
| Q: Our office had throw away the furnitures, may I know that a/c entry below correct or not : -- Dr. ... A: You are correct, when as asset is written off which has been depreciated, the transaction is: Asset ... | |
| Independent Contractor | 4/21/2011 |
| Q: I am an independent contractor who up to this year was paid by a client for labor on a 1099 and was ... A: It makes no difference how the labor and expense reimbursement is reported to you. Both are reported ... | |
| New hire bonus | 4/8/2011 |
| Q: We made an offer in March that included a sign on bonus, that is material. Can I accrue the sign on ... A: I expect that the bonus cannot be accrued before the event upon which it is based takes place. Thus ... | |
| Employee or Self-Employed? CDN working for US company | 4/4/2011 |
| Q: I reside in Ontario, and I have been self-employed doing sales work for over 10 years. A few months ... A: If you are hired as an employee, the company will pay employment taxes such as federal unemployment ... | |
| Tax filling | 3/28/2011 |
| Q: I have a question regarding tax for small firm. My firm is registered for LLC in Oklahoma. Our firm ... A: The corporate tax laws normally required filing tax returns based on when a federal ID number and ... | |
| Net income vs Cash Flow | 3/9/2011 |
| Q: I know this is an easy question but for the life of me I can not figure it out. I have an increase ... A: This is generally more of a problem if the business is on the accrual basis; as opposed to the cash ... | |
| Excel Formula | 3/9/2011 |
| Q: I need a formula to compute the interest that should be received on tax certificates when the ... A: I need to respond this way due to the limits of the AllExperts forum. I need some extra time to work ... | |
| Benefits for Partners | 2/26/2011 |
| Q: I have a business partner. Each of our cars are paid for out of our business account. My car ... A: This is really a legal question rather than a tax or accounting question. The division of ... | |
| Chart of Accounts | 2/17/2011 |
| Q: We have a number of program areas that have both income (event registrations and restricted ... A: You probably want to setup departments in QB; QB calls departments "classes". This will allow you to ... | |
| Debits & Credits | 2/15/2011 |
| Q: We made a credit card purchase last June. It has never appeared on our credit card statements. ... A: I apologize for taking so long to answer this. I had to take the time to get to a computer with ... | |
| Simple IRA Conributions | 2/11/2011 |
| Q: In New Jersey, does Simple IRA contributions deducted from my gross wages earned, reduce my NJ ... A: Normally gross wages on a from W-2 do not reflect any reduction for IRA contributions. If IRA ... | |
| Income taxes on recoverable draw | 2/9/2011 |
| Q: I am a 1099 contractor working with a firm, and I receive a monthly draw that is recoverable by the ... A: I believe that you have income after your receipts from the company you are working for are no ... | |
| credit card rewards | 1/6/2011 |
| Q: I am not sure if you are the one who can answer this question. I am running a business, and I have ... A: From what I have read, rewards from credit cards (and frequent flyer mileage rewards) are not ... | |
| payroll | 12/30/2010 |
| Q: I am trying to understand 15 th and 30 th pay dates. There are some months that I have to wait 3 ... A: Consider the difference between the pay period and pay date. Also consider when weekends fall as ... | |
| Budgeting Systems | 12/17/2010 |
| Q: 1) What is Budgeting Systems and Budgetary? 2) What are the between Budgeting Systems and ... A: Budgeting is the process of providing expected amounts for income and expenses for future accounting ... | |
| Inventory accounting | 11/18/2010 |
| Q: can you tell me how FIFO is generally recorded for all inventories in a manufacturing company? I ... A: End of year adjustments are normally made based on actual inventory: raw materials, WIP and finished ... | |
| Inventory accounting | 11/14/2010 |
| Q: can you tell me how FIFO is generally recorded for all inventories in a manufacturing company? I ... A: So, the term "FIFO" means first-in-first-out. That means as inventory is sold, the purchase cost is ... | |
| Tax forms when downsizing | 11/14/2010 |
| Q: We own a very small LLC that had only two employees and my husband, the owner. Recently we had to ... A: An LLC is a creature of state law, the first question is what are your for federal tax purposes: ... | |
| purchasing cards | 11/12/2010 |
| Q: I had a hard time finding the right expert. If you are unable to answer my question will you please ... A: I did not know what a purchasing card was, so I googled the term. It is basically a credit card ... | |
| Partner Contributions | 10/4/2010 |
| Q: We are sole owners of a corporation. We have deposited our own money into the corporate account to ... A: First, since this is a corporation, please do not show any partner contribution. If the two (or ... | |
| Business records from 20 years | 9/12/2010 |
| Q: We have all the records from our 20 years in business. How long must we keep them? They are ... A: Generally records should be kept 7 years. That is the general rule for ordinary income and expenses. ... | |
| looking for experience. | 8/28/2010 |
| Q: i have finished my first year in accounting diploma and i have one more year to graduate.Would you ... A: It has been decades since I had to look for an entry level accounting position. Not being in the job ... | |
| pension question | 7/10/2010 |
| Q: My employer is dissolving - I have enough in my pension and profit sharing funds to put a ... A: Generally, an employee cannot withdraw from his or her pension pension plan without incurring ... | |
| Benefits of 26 pay periods | 7/9/2010 |
| Q: I've always wondered why companies use 26 annual pay periods. Personally, I'm a salaried employee ... A: I have often wondered about the answer to that question. I also like semi-monthly rather than ... | |
| Profit margins | 7/2/2010 |
| Q: Sometimes the net profit margin of a business remains the same from one year to another. Can this ... A: If income and expenses move such that the percentages remain the same then the net profit percentage ... | |
| Payroll change to 15th and 30th | 5/26/2010 |
| Q: The school district I currently work for is considering changing our pay period from every other ... A: If the 15th or end of month does not fall on a business day, then normally payday is the following ... | |
| accounting software choice | 5/22/2010 |
| Q: my husband is an over-the-road company truck driver. He will soon be an owner/operator because he ... A: I apologize for not having responded to your request sooner. Quickbooks will work, but it is ... | |
| Need some suggestion | 4/30/2010 |
| Q: We at Numia, provide free online accounting service for small business. This Free Online Service ... A: Small business owners are reluctant to do business with someone they cannot meet in person. Even ... | |
| Pay periods... | 4/16/2010 |
| Q: I am a salaried employee. My employer mistakenly dated all its employees final paycheck of 2009 as ... A: I do not know if there is an "answer" to this question. I would presume that the total wages for ... | |
| biweekly pay | 4/15/2010 |
| Q: hi my boss pays biweekly but im not getting as much hours on that i work i think its because he ... A: My understanding is that the question of overtime is to be determined on a weekly basis regardless ... | |
| Depreciation & Amortization | 4/4/2010 |
| Q: Capital assets of purchase of franchise, automobile were incurred, but no revenue was made and ... A: Typically a new business begins taking a depreciation expense when the business begins in operation. ... | |
| Expenses on a S-corporation | 4/2/2010 |
| Q: We have an s-corporation and one of the partners had expent extra money advertisement and related ... A: This could be an recorded as an expense with an offset to contributed capital. An alternative would ... | |
| change in commission payment dates | 3/31/2010 |
| Q: Our sales team receives both a base salary plus a commission. The base salary is paid every two ... A: I am not aware of any restrictions on the behavior of employers in this situation. If there are, it ... | |
| Lump sum cash out of retirement plan | 3/30/2010 |
| Q: Taxes were deducted for both fed and tate of california Where do I put the distribution and the ... A: Please read the instructions for form 1040 line 16A (I believe)on the 2010 return and I believe the ... | |
| solo 401K contribution limit | 3/28/2010 |
| Q: My wife has a solo proprieter business and a part time employment. She contributed 12500 to a 403b ... A: Please review the instructions for form 1040 line 28 -- Deduction for contributions to SEP, SIMPLE, ... | |
| LLC owner 401K | 3/20/2010 |
| Q: Can the owner of LLC contribute to 401K $22,000(for age over 50), plus 20% of profit? If yes, does ... A: Please review the instructions for form 1040 line 28 -- Deduction for contributions to SEP, SIMPLE, ... | |
| 401k accounting | 3/12/2010 |
| Q: How the company in USA account for 401 k contribution. Does the premium paid matching the employee's ... A: The company's portion is like any other pension payment -- an employee expense or pension expense. ... | |
| monthly figures | 2/13/2010 |
| Q: i run a small business employing 10 persons. presently i do not gather any monthly figures and now ... A: Your question is quite broad. I am not sure what you are asking exactly. Are you currently doing ... | |
| RE: Boost capacity | 2/12/2010 |
| Q: I just want to know how they boost the capacity for Quickbooks 2006. Lately my system is becoming ... A: The only immediate suggestion I have is to close out some of the prior yearss data I assume is still ... | |
| Sole Proprietors on the payroll | 2/9/2010 |
| Q: Can a sole proprietor be on the payroll and have taxes withheld? If not what are the ramifications ... A: Basically the answer is no, as sole proprietors are not employees. The IRS does not provide for a ... | |
| proper accounting fro reimbursements of health plan costs from employees | 2/5/2010 |
| Q: what is the proper accounting for reimbursements received from employees for health plan expense. ... A: Technically I believe the proper method is to show the reimbursements as income. Assuming you are ... | |
| 1099 | 2/3/2010 |
| Q: I cannot obtain a w9 for someone I paid a substantial amount of money to this year. (I know I ... A: First, if you are still paying them, or will be paying her in the future, start the 28% backup ... | |
| Difference between actual and Quickbooks | 2/2/2010 |
| Q: Quickbooks Pro 2007 I want to balance my Quickbooks account with my Bank. Sounds easy but, I have a ... A: Make up an entry to account for the difference. There should be either a debit or credit to your ... | |
| Audit safety | 1/29/2010 |
| Q: I am an S-Corp with myself as the only employee. Is it safe or a red flag to the IRS if I reduced ... A: If you are accrual basis, take the deductions for the year in the year in which the expense was ... | |
| Tax and Accounting issues for SBA loan | 1/26/2010 |
| Q: I purchased a business four years ago (S-corp stock purchase) with only seller-financed (personal) ... A: As I understand it, the seller financed your purchase of the S Corp. Thus the debt is yours, not the ... | |
| non-employee compensation under $600 | 1/23/2010 |
| Q: Have small business - was helping a homeless lady. Paid her $200 for odd jobs around shop. Got ... A: Technically, you do not have to report 1099 independent contractor payments if the total paid during ... | |
| Taxability of Simple IRA employee and employer contributions in New Jersey | 1/20/2010 |
| Q: Please advise if both employee and employer contributions to a Simple IRA plan are taxable in the ... A: First, your question is confusing and second, this is not the forum for income tax questions. You ... | |
| Point of Sale | 1/17/2010 |
| Q: I am writing a basic on line point of sale system for a company, having on limited knowledge on the ... A: I do not know what a "line point of sale system" is. I am aware of a point of sale, POS, system is. ... | |
| my pension | 1/13/2010 |
| Q: I recently lost my job after almost 7 yr's in Nov of last year, as my job was eliminated, and they ... A: First, there are other people in this category which are more qualified to answer questions ... | |
| Paymaster Agreement | 1/12/2010 |
| Q: I'm an executive assistant who is assisting our corporations in implementing a common paymaster ... A: Please review the rules at IRS Pub 15A, Sec. 7 "Rules for Common Paymasters" (www.irs.gov). In ... | |
| employees in research studies | 1/12/2010 |
| Q: If participants in clinical research studies receive payment for their participation as independent ... A: Normally payments to an employee are for all activities engaged in while an employee. Thus payments ... | |
| about quick books | 12/28/2009 |
| Q: how can we learn quick books online A: Your question is too broad. The answer depends on how much you know about computers? How much you ... | |
| payroll submission | 12/22/2009 |
| Q: If i receive my paycheck on every Mondays(weekly). when should i receive my cheque if monday is a ... A: By your use of the word "cheque" rather than the USA common spelling "check" I presume you are not ... | |
| Deferred Tax Liabilities-Current | 12/21/2009 |
| Q: Good day. afi, i put Deferred Tax Liabilities-Current in our year ended account, after auditor ... A: The difference between "current" and "long term" is generally whether or not the liability is ... | |
| Insurance - Credit Note | 12/19/2009 |
| Q: good day to you. It's regarding company accounting transaction/entry, i handle account for our ... A: Then what you should do is to debit a prepaid expense account when the payment is made (and credit ... | |
| MN/IN reciprocity | 12/18/2009 |
| Q: How difficult is it for an employer in MN to file a reciprocal form for an IN employee? I am in ... A: What is a "reciprocal form" -- I have not heard of it. I did find the following: ... | |
| Taxes | 12/18/2009 |
| Q: If I "PAY" Federal 941 taxes quarterly, do I pay tax on the 15th or the last day of the month ... A: First, I would refer you to IRS Pub 15, please see the index at "When To Deposit." Also see "When ... | |
| Insurance - Credit Note | 12/17/2009 |
| Q: good day to you. It's regarding company accounting transaction/entry, i handle account for our ... A: The account "prepaid expense" account is used in an accrual system; as you are expensing the payment ... | |
| Taxes | 12/10/2009 |
| Q: If I "PAY" Federal 941 taxes quarterly, do I pay tax on the 15th or the last day of the month ... A: The payment of payroll taxes is different from the filing of the quarterly tax returns. The question ... | |
| pension check | 12/10/2009 |
| Q: i have recently moved and my late husbands' pension check is being taken by some people I know. how ... A: First, if you have not already, please talk to the police. As for contacting Kraft, I found the ... | |
| w2 pension income?? | 12/9/2009 |
| Q: we are trying to qualify someone based on what they are saying is pension income but it is being ... A: A deferred comp plan is not the same as a pension plan. I have not seen the specific description ... | |
| Pensions | 11/22/2009 |
| Q: At my place of employment, I have a pension through the state. There are some options that a ... A: At retirement age, a pension has a fixed value based on the contributions and earnings prior to ... | |
| S & H | 11/20/2009 |
| Q: I am new in accounting and I am using QuickBooks. My company is importing items from other ... A: Generally, shipping and transportation costs are included as part of cost of goods sold, basically, ... | |
| salary analysis | 11/17/2009 |
| Q: what approach would you take to do a salary analysis to current vs next year? Expense bridge to show ... A: Under normal conditions I might look at the trend over the past few years rather then just the ... | |
| expenses papertrail | 11/6/2009 |
| Q: I have recently set up a solo pediatric therapy business (LLC, s-corp designation). I am using ... A: Generally an expense form is used for expenses paid out of a personal account -- checking or credit ... | |
| AT&T RETIREMENT | 11/5/2009 |
| Q: OUR AT%26T BUSINESS OFFICE CLOSED IN APRIL OF 1989. I WAS ADVISED THAT OUR RETIREMENT WOULD BE ... A: Contact the HR, human resources, department of At&T *and* Lucent Technologies. This may take several ... | |
| Recoverable Draw & PTO Payback-Gross Versus Net | 10/31/2009 |
| Q: My former employer (I voluntarily resigned), paid me 2 months worth of recoverable draw which ... A: Keep in mind that the income taxes withheld will be reported on your annual 1040. You received, in ... | |
| office administration | 10/25/2009 |
| Q: sir/madam,i am working in a software company as business development and have been promoted to do ... A: Your question is too broad. There is no answer to your question as it depends on the company. ... | |
| Leasing-Finance or Operating Lease | 10/23/2009 |
| Q: I own a business & doing the accounting myself. I rent a photocopier machine from supplier,paying ... A: For a financing lease, the lease term equals or exceeds 75% of the asset's useful life. And, the ... | |
| payroll taxes | 10/12/2009 |
| Q: I am starting a business. Will employ two, at total annual salary of $85,000. For my budgeting, what ... A: FICA and unemployment taxes are around 10% plus a bit for state unemployment taxes = 12% about. ... | |
| Leasing or Hire Purchase | 10/7/2009 |
| Q: I own a business & doing the accounting myself. I rent a photocopier machine from supplier,paying ... A: There is nothing wrong with your treatment regarding expensing the annual lease payments as rent or ... | |
| Leasing or Hire Purchase | 9/30/2009 |
| Q: I own a business & doing the accounting myself. I rent a photocopier machine from supplier,paying ... A: The question of whether or not you can depreciate the machine as an asset as opposed to writing off ... | |
| Stock dividends | 8/19/2009 |
| Q: My brothers and I have started up a C corporation, with 10,000 shares of stock available. 380 ... A: There maybe state laws dealing with this. You can, of course, have two classes of stock with ... | |
| depreciation | 8/13/2009 |
| Q: What do you mean by provision for depreciation? A: Each year (or normal accounting period) depreciation expense is recorded and offset with the ... | |
| Amotization & Depreciation | 8/4/2009 |
| Q: In short, how to identify the different between amotization & depreciation of a fixed asset? ... A: Amortization is generally taken against intangible assets -- goodwill for example. Amortization is ... | |
| quick books basic 2004 | 7/29/2009 |
| Q: I am using quick books basic 2004 to track home owners association dues for a small mobile home ... A: I have experienced the same problem you have -- credits which could not be applied to specific ... | |
| Reducing Balance Method | 7/27/2009 |
| Q: E.G. Purchase a machine at 5,000.00 on JULY 2008.Estimated life span is 3 years.For Reducing Balance ... A: Normally a declining balance depreciation method means applying a fixed percentage to the remaining ... | |
| quick books basic 2004 | 7/24/2009 |
| Q: I am using quick books basic 2004 to track home owners association dues for a small mobile home ... A: I do not have the 2004 QB version. I you can apply a credit to a specific charge, to a specific ... | |
| Terminted employee vacation pay out tax | 7/21/2009 |
| Q: I was recently laid off and was paid out for my PTO. I live in California and I am wondering about ... A: It's the same. Either way it is included as wages. The only difference may be the amount of income ... | |
| healthcare and small business | 7/17/2009 |
| Q: Company A, which employs seven people: a manager, an assistant manager, and five workers. The owner ... A: The facts of your scenario have nothing to do with the proposed health care plan. In addition, this ... | |
| Depreciation-Reducing Balance Method | 7/17/2009 |
| Q: E.g. Our company purchased a Notebook value at 4,818.00 for sales executive. On a/c part, i'll ... A: Under declining balance depreciation calculations, at some point the straight-line method will be ... | |
| Depreciation-Reducing Balance Method | 7/16/2009 |
| Q: E.g. Our company purchased a Notebook value at 4,818.00 for sales executive. On a/c part, i'll ... A: A straight line depreciation over 3 years is 33% per year (actually 33.333% per year) = $1,606.00 ... | |
| Depreciation | 7/15/2009 |
| Q: E.g. Our company purchased a Notebook value at 4,818.00 for sales executive. On a/c part, i'll ... A: If your depreciation method does not fully depreciate the asset over its useful life, then the ... | |
| Gross-Up W-2 Reporting | 7/15/2009 |
| Q: Do the employer paid federal income taxes get reported in box 2 of the W-2 as well as the ... A: Yes, if payroll is grossed up, the "employee" taxes which would normally be withheld, but are in ... | |
| Accounting treatment for Acquiring and selling line of business from existing company | 7/12/2009 |
| Q: we are the whole owner (100%) of a company intend to sell one line of business from our existing ... A: Your question is not clear. Specifically -- "buyer to pay the proceeds (selling price) partially to ... | |
| Paper work and an incoming job. | 7/6/2009 |
| Q: My brother and I have started a screen printing service and I am his office manager. He will be ... A: There is no specific answer to your question as it depends on how you run your business. For ... | |
| Rent prepayment | 7/2/2009 |
| Q: How do i treat a rent prepayment of 6,600.00 paid on the 18/08/2008 in my books A: When the rent is prepaid: cash credit prepaid rent debit "Prepaid rent" is a short-term ... | |
| Profit Sharing Plans | 6/30/2009 |
| Q: Are there any periodic reporting requirements to employees on their account values in the company's ... A: I expect there is: however, I cannot point to an IRS Code section or other reference to support my ... | |
| Accounting | 6/29/2009 |
| Q: I just started working as an intern with a company. what are the first things i should look for in ... A: Begin by seeking advice from the CPA or whoever is preparing their annual tax returns. Find out what ... | |
| accounts | 6/28/2009 |
| Q: Respected sir I have been given the subject of accounts to teach to PG students(no option)but i ... A: By "accounts" do you mean the setup of the chart of accounts? -- What is a short term asset, long ... | |
| Current Ratio | 6/26/2009 |
| Q: Sir, what happened when we use cash i.e current assets to pay the account payable i.e current ... A: I have copied the figures below from a spreadsheet; I hope you can read them okay. In this example, ... | |
| Current Ratio | 6/26/2009 |
| Q: Sir, what happened when we use cash i.e current assets to pay the account payable i.e current ... A: Well, write down an example of current assets and current liabilities. Then reduce current assets by ... | |
| When would you take a reserve on cash receipts? | 6/24/2009 |
| Q: Let's say company A receives some cash from a settlement with company B. If Company A believes that ... A: I understand that the payment received may have to be returned. I would expect that during the ... | |
| When would you take a reserve on cash receipts? | 6/24/2009 |
| Q: Let's say company A receives some cash from a settlement with company B. If Company A believes that ... A: Your question is a little confusing. If you have received the cash settlement, then what difference ... | |
| Expenditure on fixed assets | 6/22/2009 |
| Q: How do i treat the purchase of a used spare part for an equipment eg CAT BULLDOZER. Eg. purchased ... A: Generally, the transaction would be: Fixed assets $2,000 debit Cash $2,000.00 ... | |
| Flexible Spending Account Refund | 6/17/2009 |
| Q: We received our refund for unused FSA funds for 2008. It is larger than was estimated and is being ... A: I am a little unclear as to whether you are an employer or employee based on the wording of your ... | |
| Payroll taxes | 6/16/2009 |
| Q: I work for a small company where we get a bonus at the end of the year for meeting our yearly ... A: Keep in mind that an employee stock option plan is a type of pension plan. As such, it is not a ... | |
| Accounting of Post dated cheques | 6/10/2009 |
| Q: Can I account these cheques and knock off the receivables from my account. and show the chques in ... A: I do not believe the A/R should be recorded as paid until you have unrestricted access to the funds. ... | |
| Flood loss to inventory | 6/10/2009 |
| Q: Book keepingI have inventory that cost $20,000. Due to a flood, I lost $16,000 worth. The ... A: Setup an account called "inventory loss account" or something like that. Then credit your inventory ... | |
| Wait staff tip/wage rules- Wisconsin | 6/8/2009 |
| Q: I know of an employer who "keeps" 3% of the employee credit card tips (I suppose to cover the ... A: You will need to talk to an employment attorney in that state; I am in Texas. This is not really an ... | |
| Single Member LLC tax question | 6/6/2009 |
| Q: I have set up a single member disregarded LLC for consulting. Can I avoid paying quarterly estimated ... A: No, quarterly payroll taxes are due regardless of the pay period: weekly, biweekly, semimonthly or ... | |
| pension overpayment | 6/5/2009 |
| Q: I've just been notified that I have been overpaid in my pension by 72,000.00 and they are demanding ... A: First, I would strongly recommend your talking to an employment attorney. The question of your not ... | |
| 401k Rollover as Seed Capital into my Start-up | 6/5/2009 |
| Q: I'm starting a company and want to use my 401k as seed capital. I've heard it is doable but nothing ... A: I am not a retirement specialist. With that said, I am not aware of an exception the the penalty for ... | |
| forming a small business | 6/3/2009 |
| Q: I am in NYS, wanted to form a small business single person operation from home, I do have a full ... A: I assume NYS is New Your State. Although your question is experessed simply, it in fact more ... | |
| Normalized Income Statement | 5/23/2009 |
| Q: I am looking to buy a business, I was told the best way to look at how much the business makes is to ... A: I found -- Normalize means: Removing items from the income statement or balance sheet that do not ... | |
| payroll vs income | 5/20/2009 |
| Q: What % of my business payroll should my monthly gross be? If my company makes $900,000 per month ... A: There is no specific answer to your question. For certain industries, there are guidelines, but ... | |
| deferred salary | 5/19/2009 |
| Q: I am uncertain how to account for a portion of salary that would be deferred for a long time (say ... A: I will freely admit that accounting for and taxation of deferred comp is not one of the areas of ... | |
| General Journal entry | 5/19/2009 |
| Q: I paid $45k for a business. How do I set this up in the generl journal. What is credited and ... A: A business can be purchased one of two ways, generally. First, only the assets can be purchased. ... | |
| How to expense time lost for service rendered | 5/15/2009 |
| Q: We are sorry, but Mike Wellman wasn't able to answer yourI would like to know if there is a way to ... A: No, there is no deduction for lost time. Income and expenses are based on dollars, money. If one ... | |
| Accounting for 'Lost Time or Service' | 5/13/2009 |
| Q: I would like to know if there is a way to expense lost time -- time spent rendering a service which ... A: "Lost time" is not really an expense per se. Rather it is simply an offset to gross income if you ... | |
| LLC with owner given salary | 5/12/2009 |
| Q: My husband and I owned an LLC; I put him on the payroll; His salary is being deposited back to ... A: So, you are reporting W-2 wages which are subject to income taxes as well as payroll taxes, both ... | |
| Accounting Career | 5/12/2009 |
| Q: I am planning on taking a rigorous accounting schedule next year and receiving my associates degree ... A: I have been removed from the accounting job world for quite a while. Accordingly I have no idea what ... | |
| bounced paychecks | 5/10/2009 |
| Q: Until Friday, May 8th, 2009, I was comptroller for an international company based in Florida. I ... A: The answer depends on the specific unemployment comp rules in your state. You may likely be able to ... | |
| payroll | 5/7/2009 |
| Q: When the payroll period ends on the 28th of the month and the payroll check date is on following 5th ... A: First question, is the accounting on the accrual basis or cash basis. Cash basis, of course, is the ... | |
| deductions in depreciation | 5/4/2009 |
| Q: In an income statement, the entire depreciation is charged as an expenditure, but in the balance ... A: Deductions to accumulated depreciation are typically attributable to items sold or disposed of. The ... | |
| sales tax | 5/1/2009 |
| Q: I am on the board of directors of a 501(c)3 organization in New York. We are a tax-exempt not for ... A: NOTE: I have no experience with New York sales tax returns. From ... | |
| Bonus overpay | 4/29/2009 |
| Q: I recently got a bonus inthe amountof 2,786.05 GROSS, the net from the bonus was 1,716.20. The bonus ... A: The issue is complicated by payroll taxes. If the gross bonus received was $2,786.05, then your ... | |
| Auto purchase/lease | 4/23/2009 |
| Q: We traded in an owned vehicle and then leased a new vehicle. The dealership paid off the remaining ... A: I do not think this is a tax-free transaction. Even though your new lease payments, in effect, "pay" ... | |
| early retirement pension tax penalty | 4/23/2009 |
| Q: My husband is 53 and wants to retire. He has a pension provided thru his union that he contributed ... A: If you simply choose to take out a withdrawal, then yes, there is a penalty tax on early withdrawal ... | |
| 401K excess contribution | 4/22/2009 |
| Q: My company deducted more than $15,500 for my 401K account in 2008 so I filed for a return of excess ... A: I am not sure what to tell you to do. The best answer would be to contact HR for you old employer, ... | |
| Direct deposit of payroll | 4/20/2009 |
| Q: Payroll did not arrive in my direct deposit account. Check processing co says they did everything ... A: Your not receiving your paycheck is your employer's responsibility, I believe. Keep in mind that ... | |
| sales tax | 4/17/2009 |
| Q: When doing accounts payable and you take a purchase discount on an invoice do you calculate sales ... A: Consider the following: 2% discount off the product cost then calculate the invoice: $100 - 2% = ... | |
| sales tax | 4/16/2009 |
| Q: When doing accounts payable and you take a purchase discount on an invoice do you calculate sales ... A: It is probably the discounted amount. For example: Cost $100 discount 20% Discounted price is ... | |
| Class action proceeds | 4/14/2009 |
| Q: We are a small not for profit with an endowment portfolio. We received proceeds from class action ... A: I would not expect the credit to be an investment income account. Investment income would be the ... | |
| OVERTIME | 4/13/2009 |
| Q: If an employee works 4 days at 8 hrs. and 1 day is paid sick time do overtime rates apply to hours ... A: Generally, overtime is time worked in excess of 40 hours per week. I am not sure about a day being ... | |
| taxes | 4/11/2009 |
| Q: he has on his paycheck marital status for feeral S and for state M and we are still married getting ... A: The filing status claimed for purposes of calculating payroll withholding can be set to be any ... | |
| builder went bankrupt loss of 20k | 4/1/2009 |
| Q: before we could sell our house, the builder went bankrupt. Can we deduct this and how? A: I think this would be treated as a non-business bad debt. The bad debt would show as a short-term ... | |
| Bad Debt to total sales ratios | 3/28/2009 |
| Q: Naman, I work for a small family business as their controller. I am trying to help the owners ... A: Let's begin by considering the company's history. I presume you have historical data to calculate ... | |
| Sales tax | 3/27/2009 |
| Q: When doing accounts payable invoices and you have one that you are taking a purchase discount on do ... A: I have always taken the total on the invoice, including taxes, shipping and handling charges, and ... | |
| Deferred Salary | 3/27/2009 |
| Q: "An officer of a C-corp client deferred salary for the past two years. He now wants to waive the ... A: First, what has been the entry to record the deferred salary for the past couple of years. You may ... | |
| sales tax | 3/27/2009 |
| Q: When doing accounts payable and you take a purchase discount on an invoice do you calculate sales ... A: What do you mean by "purchase discount"? Typically if there is a purchase discount, the seller ... | |
| Changes in assets / liabilities | 3/24/2009 |
| Q: I was wondering if "Changes in working capital" is the same as "changes in assets and liabilities" ... A: Annual sales is typically the sales amount on an annual statement of income. I do not mean to convey ... | |
| Changes in assets / liabilities | 3/22/2009 |
| Q: I was wondering if "Changes in working capital" is the same as "changes in assets and liabilities" ... A: Changes in working capital means changes in short term assets and liabilities -- cash, AR, A/P, etc. ... | |
| 1099 MISC for a student stipend | 3/20/2009 |
| Q: I saw you asnwered a similar girls message who had the similar issue of a place of business paying ... A: If someone has not previously answered your question ... On the form 1040, Individual Income Tax ... | |
| Sale of Land | 2/23/2009 |
| Q: Mr Arthur, thank u very much for for helping out with my previous questions. I am a bit unsure about ... A: The purchase of land is the purchase of an asset. Credit cash and debit a fixed asset account - ... | |
| pension tax exempt | 2/19/2009 |
| Q: I receive a private pension and was wondering if this year I will not have to pay tax on it. I turn ... A: You should receive a form 1099 from the payor; in fact, the payor is required by the IRS to send the ... | |
| Cash transactions | 2/17/2009 |
| Q: The problem i have is my boss makes a lot of cash transactions which are not paid from our business ... A: The journal entry for recording a receipt of cash for rental income is: Cash (or checking account) ... | |
| Accounting | 2/16/2009 |
| Q: Mr. Brock paid $50K for a franchise that entitled him to market software programs in the countries ... A: The phrase "to capitalize his own franchise at $500k means, to me, that Mr. Brock begins this series ... | |
| Handling Cash Payments | 2/13/2009 |
| Q: Mr. Naman: I have sought out a policy or procedure on how to best handle "cash payments" according ... A: The complete discussion of this topic may require more than a single reply. Please feel free to ... | |
| accounting-determining transactions (beginner) | 2/10/2009 |
| Q: I am a teacher(9-12) who has been assigned to teach accounting. A question came up that I couldn't ... A: I might be willing to do some, for lack of a better work, tutoring for you or your students. I am ... | |
| Cash transactions | 2/9/2009 |
| Q: The problem i have is my boss makes a lot of cash transactions which are not paid from our business ... A: If non-corporate cash is used for corporate purchases, it is normally classified as either a loan or ... | |
| Taxable Amount | 1/29/2009 |
| Q: Please share the formula to determine the taxable amount of a purchase if all you have access to is ... A: The formula to calculate the sales tax amount is taxable purchase x sales tax rate. Therefore the ... | |
| Sales tax if I am a reseller | 1/27/2009 |
| Q: I have recently started my own company (LLC) and I am also registered as a NY sales tax collector. ... A: I am in Texas; I do not know if the rules are the same where you are. With that said ... Generally ... | |
| salary shortage due to pay period change | 1/1/2009 |
| Q: 2008 Salary $76,000.00 biweekly pay 26 weeks. Friday payday April 18th 2008 was last paycheck ... A: I am not aware of any accounting standards, payroll standards or anything else to support your ... | |
| salary shortage due to pay period change | 12/31/2008 |
| Q: 2008 Salary $76,000.00 biweekly pay 26 weeks. Friday payday April 18th 2008 was last paycheck ... A: If your annual salary is $76k, meaning no raises, bonuses, etc., then that's what it should be. It ... | |
| Obsolete inventory accrual | 12/19/2008 |
| Q: We accrue for obsolete inventory every month. Now at year-end we are actually writing off some ... A: No, I do not believe you do not have to have an accrual balance on the books at year end. The ... | |
| Purchase/payment journals | 11/26/2008 |
| Q: I currently use a double entry bookeeping system, which is quite new for me. My question is...I ... A: The first question is whether or not your company needs to track accounts payable, a/p. I am ... | |
| Purchase/payment journals | 11/25/2008 |
| Q: I currently use a double entry bookeeping system, which is quite new for me. My question is...I ... A: First, there is no "right" or "wrong" way to record payments. It just depends on what one is trying ... | |
| payroll for 2 states | 11/18/2008 |
| Q: I am starting to do the payroll for a Florida based LLC. There are currently 6 employees, 2 ... A: What ever you choose to do regarding payroll taxes and workman's comp, please be confident of your ... | |
| moving average cost method | 10/29/2008 |
| Q: How should I calculate average cost during purchase return or sales return Perpetual system Average ... A: This is not the forum for homework questions, please do your homework. The answer is: search using ... | |
| a/r aging | 10/28/2008 |
| Q: what is the correct way to age an account. is it from the date of service or the date of payment ... A: An accounts receivable is incurred at the time of the sale. So normally the A/R would "begin" on ... | |
| How to calculate average cost during purchase return and sales return in Moving Average Cost Method. | 10/27/2008 |
| Q: Moving Average Method Product A/c No 101 Supplier A/c No 201 Cash A/c No 102 Product Profit ... A: Moving average cost means an inventory costing method under which an average unit cost is computed ... | |
| accounting | 10/22/2008 |
| Q: The Ritz Manor is a popular seaside resort. A double room costs $220 for one night. In order to ... A: This sounds like a homework problem. If so, please do your own homework. If that is not the case, ... | |
| Employee Bonus & Taxes -add'l | 10/17/2008 |
| Q: My company is a non-profit senior community center. Our leadership team would like to pay one time ... A: Payroll taxes are *not* an option, they are mandatory. An alternative, however, is to "gross-up" ... | |
| adjusting journal entry | 10/15/2008 |
| Q: i am having trouble figuring out the amount to debit and credit to certain accounts. Victor hast two ... A: Your scenario is vague, not clear. I presume your are asking about the salary expense at Dec. 31, ... | |
| Employer taxes for 1099 | 10/6/2008 |
| Q: If I issue 1099 MISC to contractors , as an employer do I need to file 941, 940 and State ... A: The payroll forms 941, 940, and the state equivalents are required for employees, not independent ... | |
| Financial Accounting | 9/28/2008 |
| Q: Sir, I'm a student of MBA with major as Human Resource Management. The question I'm going to ask you ... A: So, what question do you have?? I you do the research about this topic including all the topics ... | |
| Imputed income | 9/27/2008 |
| Q: I recently began receiving my insurance benefits at work and was surprised to see around twice the ... A: First, I am not sure a domestic partner can qualify as a dependent. I have not reviewed the relevant ... | |
| Receivables paid directly to suppliers | 9/26/2008 |
| Q: If a receivable amount due from a customer to me is paid directly to one of my suppliers, what asset ... A: Since no funds were received by you, nor paid out by you, there should be no entry to a ... | |
| single member payroll? | 9/23/2008 |
| Q: I'm setting up a single member LLC in QuickBooks. I'm not sure how to expense out money like payroll ... A: If the LLC is incorporated, then payments of wages to the owner/employee are just like wages paid to ... | |
| periodic inventory system | 9/8/2008 |
| Q: Explain why a small business such as this might use the periodic inventory system.(mountain mabel's ... A: Many businesses cannot track a specific individual inventory item, rather inventory is tracked by ... | |
| Single Entry vs Double Entry | 8/15/2008 |
| Q: If I am going to use single entry accounting rather than double in my small business (service ... A: A single entry accounting system is simply a means to track cash receipts and disbursements. Thus if ... | |
| Tax related | 8/12/2008 |
| Q: An S corporation is paying back to the only shareholder what he loaned the corp. How does the loan ... A: How does the loan repayment affect taxes? -- There is no effect on income taxes. Its just like any ... | |
| Defined benefit pension - monthly payment | 8/7/2008 |
| Q: How do I know whether my company has correctly calculated my monthly pension payment? A: You question is not clear. Are you asking how much the monthly payment into your pension, aka the ... | |
| simply Accounting Entries/Shareholder Loan | 8/5/2008 |
| Q: A bookkeeping question using Simply accounting What does my journal entry look like for this ... A: I do not use, and have not used, Simply Accounting. The answer which follows is a general answer for ... | |
| More acronyms: S, Sign, L/H | 7/22/2008 |
| Q: it is Patricia again... I wonder if you can help me with other acronyms. They appear in the ... A: I would agree that "L/H" probably means leasehold. "Sign" might mean simply a sign as advertisement ... | |
| Acronyms (CIP and FF) from a Chart of Account | 7/21/2008 |
| Q: I'm translating a chart of accounts into Spanish and have a couple of acronyms unknown to me... CIP ... A: CIP = abbreviation for construction in progress or construction in process. There are capital assets ... | |
| Payroll and balance sheets | 7/19/2008 |
| Q: "How does payroll affect the balance sheet -- when the expense is incurred and paid in the same ... A: If all payroll taxes are paid in the same period in which the payroll expenses are incurred, there ... | |
Accounting, Payroll & Pension Issues
Answers by Expert:
Arthur Naman
Top Expert on this page
Expertise
General accounting and bookkeeping questions. How to do monthly bookkeeping, how to prepare financial reports. How to reconcile accounts.
I cannot answer questions pertaining to pension or retirement planning.
This is not a forum to have homework answered. Please do your own homework.
Experience
30 years' experience doing tax and accounting work
Education/Credentials
MPA from Univ. of Texas at Austin, MBA Golden Gate Univ, San Francisco CA
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