More Q&A!
Q: Is it true that payroll audits are one of the top two most dreadful audits?
A: YES! Think about it, no one understand payroll, yet most people try to do payroll on their own (on top of running their businesses, managing the staff, handling customers! It's crazy to think that your brain (which I believe was built for creating, will remember all the details! For CHEAP! ($20/month in some cases) you can have another company handle the payroll and handle any problems with it!
Q: If I own an S-Corporation, do I have to take Salary? What about a C-Corporation? A Sole Proprietorship?
A:
S-Corp - YES! At least 50% of your income needs to be salary or "reasonable compensation" depending on the level of income
C-Corp: YES! Same as an S-Corp
Sole Proprietorship - IT DEPENDS! (of course, our favorite answer in the tax code!) so ASK YOUR CPA!
Q: What about Sales Taxes? Do I need a special license? How does that work?
A: Well, that's a whole subject on it's own. Depending on what you sell, in which state, if you have a store front, or sales people in that state, all these answers can change! So again, ASK YOUR CPA! Sales tax is the second worst audit, so be sure you have someone who you know is doing it right!
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