"Questioner" <123[at]123321123321.com> wrote:

- quote -

I think that most of the regular taxing authorities don't
really care WHEN you issue payroll as long as your annual
numbers are reasonable.

HOWEVER, in Maryland (I know you're in NY so be sure to
discuss this when your NY accountant) an employee/owner can
be eligible to draw unemployment if the company shuts down
through no fault of the owner/employee. The catch is that
to qualify for unemployment you have to have paid in for the
LAST three quarters. I've had several clients who had to
shut down their C corps and when they filed for unemployment
were denied ONLY because they only had payroll in December
of the last 3 years - they didn't pay in ratably throughout
the year during all 4 quarters so they didn't get
unemployment. I know it sounds like a small issue, but you
may want to consider it.

Gene E. Utterback, EA

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"Harlan Lunsford" <hlunsford[at]bellsouth.net> wrote:

- quote -

Thanks Harlan and Paul for the input. Yah, just wanted to be
sure about this.

- quote -

This year's should be a cinch. As for next year, In
consideration of disability, to be safe, I may very well
plan out a big salary payment for once each quarter along
with two smaller ones. Will definitely discuss this further
with my new accountant once I find one that can suit my
needs.

'regards,

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Questioner wrote:

- quote -

I don't see any problem with such an arrangement as to
frequency of payments. After all, sometimes an accurate
profit can be forecast until December rolls around, e.g. in
certain holiday oriented retail businesses. Uncle Sam
won't mind.

HOWEVER: the people paying the disability might be the ones
who would object. And that's a whole nuther ballgame.

- quote -

ChEAr$,
Harlan Lunsford, EA in LA
munching on boiled peanuts this time of year
(Goodness how delicious! Eating goober peas!)
Tue, 2 Nov 2004 08:59:55

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"Questioner" <123[at]123321123321.com> wrote

- quote -

All that sounds fine. Just plan the cash flow carefully.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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Before I continue and so's to avoid the common response of:
"Get yourself a Tax Pro Quick!!!", I have had one since the
beginning of the year with whom I'll be very soon parting
ways, in search of a replacement.

I've no qualms paying myself (AS SALARY) what would have to
be 50% of my S-Corporation's Gross income which in effect
would leave the company with little monies after other
expenditures and such. (meaning that the remainder of monies
taken in WERE used for Business Purposes.) 'and with
little left for distributions at year's end.

HEY, if that's what the tax man wants if/when he commeth,
then that's what he'll getteth from me!

Here's the question: Although We've been paying the IRS and
all other entities their dues (tax-wise that is, FICA, NYC,
NYS, Medicare, Unemployment and so on, and son...) on a
regular basis.

How does the following sync in with the rest of you? Paying
myself (sole owner and sole worker) a menial monthly Salary
with the idea of giving myself a HUGE salary bonus at year's
end through which of course all employment withholdings will
be figured and other dues paid to Uncle Sam ???? Did that
make sense? I hope so.

You see, the method to my mindness is how I've got other
concerns (dealing with disability) which require a set
threshold each month. Thus my wishes to take of it all at
the end of the year. The tax-man will certainly get his,
won't he? OR WILL THERE BE HASSLES THIS WAY?.....hassles
which can come back from the woodwork to harm me?...or
rather drive me batty?

Much appreciation from the well informed peanut gallery would truly be
appreciated!!!

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