Reasonable Compensation
S corporations and shareholder employees
1What is reasonable compensation?
Reasonable compensation is the amount of salary that an S corporation shareholder-employee would receive for their services in a similar business. It is determined by considering factors such as the shareholder-employee's duties, responsibilities, experience, and skills, as well as the compensation paid to other employees in similar positions.
2Why is reasonable compensation important for S corporations?
The IRS requires S corporations to pay reasonable compensation to their shareholder-employees in order to prevent them from avoiding self-employment taxes. If the IRS determines that an S corporation has not paid its shareholder-employees reasonable compensation, it can reclassify distributions as wages, which will result in increased taxes, penalties, and interest.
3How can I determine reasonable compensation for my S corporation?
There is no one-size-fits-all answer to this question, as the amount of reasonable compensation will vary depending on the specific facts and circumstances of each case. However, there are a number of factors that the IRS will consider when determining whether or not compensation is reasonable, including:
* The shareholder-employee's duties and responsibilities
* The shareholder-employee's experience and skills
* The compensation paid to other employees in similar positions
* The profitability of the S corporation
* The shareholder-employee's ownership percentage in the S corporation
* The shareholder-employee's duties and responsibilities
* The shareholder-employee's experience and skills
* The compensation paid to other employees in similar positions
* The profitability of the S corporation
* The shareholder-employee's ownership percentage in the S corporation
Bookkeeping / Payroll
Full service bookkeeping or payroll?
1What is bookkeeping?
Bookkeeping is the process of recording financial transactions of a business. It involves tracking income and expenses, as well as assets and liabilities. Bookkeeping is essential for businesses of all sizes to track their financial performance and stay compliant with tax laws.
2What is payroll?
Payroll is the process of calculating and paying employee wages. It involves tracking hours worked, taxes withheld, and deductions. Payroll is also essential for businesses to stay compliant with labor laws.
3What are the different types of bookkeeping services?
There are three main types of bookkeeping services:
* After-the-fact bookkeeping: This is the most basic type of bookkeeping service. The bookkeeper will simply record your financial transactions after they have occurred.
* Full-service bookkeeping: This type of bookkeeping service includes everything that after-the-fact bookkeeping does, plus the bookkeeper will also handle your accounts receivable (A/R), accounts payable (A/P), and payroll.
* Payroll processing: This is a specialized type of bookkeeping service that focuses on payroll processing. The bookkeeper will calculate and pay your employee wages, as well as withhold taxes and deductions.
* After-the-fact bookkeeping: This is the most basic type of bookkeeping service. The bookkeeper will simply record your financial transactions after they have occurred.
* Full-service bookkeeping: This type of bookkeeping service includes everything that after-the-fact bookkeeping does, plus the bookkeeper will also handle your accounts receivable (A/R), accounts payable (A/P), and payroll.
* Payroll processing: This is a specialized type of bookkeeping service that focuses on payroll processing. The bookkeeper will calculate and pay your employee wages, as well as withhold taxes and deductions.
Tax Services
Prepare and e-file income tax returns
1What types of tax returns do you prepare?
We prepare and e-file income tax returns for individuals, businesses, and trusts. We can handle all types of returns, including 1040, 1120, 1065, and 1120S.
2What is included in your tax preparation service?
Our tax preparation service includes a comprehensive review of your financial statements and transactions. We will reclassify transactions where necessary to ensure that your return is prepared correctly. We will also help you maximize your deductions and credits.
3What are the benefits of using your tax preparation service?
There are many benefits to using our tax preparation service. We are experienced and knowledgeable tax professionals who can help you prepare your return correctly and on time. We will also help you maximize your deductions and credits, which can save you money.
Senior Level Accounting
Custom reports and more
1What is senior level accounting?
Senior level accounting is the level of accounting that is typically held by accountants with at least 5 years of experience. Senior accountants are responsible for more complex accounting tasks, such as preparing financial statements, managing budgets, and auditing financial records.
2What are the responsibilities of a senior accountant?
The responsibilities of a senior accountant can vary depending on the size and industry of the company they work for. However, some common responsibilities include:
* Preparing financial statements, such as balance sheets, income statements, and cash flow statements
* Managing budgets and forecasting financial performance
* Auditing financial records to ensure accuracy and compliance
* Providing financial advice to management
* Training and mentoring junior accountants
* Preparing financial statements, such as balance sheets, income statements, and cash flow statements
* Managing budgets and forecasting financial performance
* Auditing financial records to ensure accuracy and compliance
* Providing financial advice to management
* Training and mentoring junior accountants
3What are the skills of a senior level accountant?
The skills required for senior level accounting include:
* Strong accounting knowledge and technical skills
* Excellent analytical and problem-solving skills
* Ability to work independently and as part of a team
* Strong communication and presentation skills
* Attention to detail and accuracy
* Strong accounting knowledge and technical skills
* Excellent analytical and problem-solving skills
* Ability to work independently and as part of a team
* Strong communication and presentation skills
* Attention to detail and accuracy
Business Consulting
What kind of business consulting do you provide?
1What does your tax planning and preparation service consist of?
We help businesses minimize their tax liability by developing tax strategies and preparing tax returns.
2Do you offer financial analysis?
Yes, we can help you understand your financial performance by analyzing your financial statements and providing insights into areas of strength and weakness.
3What is business valuation?
We help business owners determine the fair market value of their assets, liabilities, and equity. This information can be useful for a variety of purposes, such as mergers and acquisitions, estate planning, and financing.