Discussion:S corporation has employees in 10 different states
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| {{ForumReplyPost|UserID=Death&Taxes|Date=3 March 2009|Text=Just working with someone else on this client, who if you are not careful will leave you no time for others.}} | {{ForumReplyPost|UserID=Death&Taxes|Date=3 March 2009|Text=Just working with someone else on this client, who if you are not careful will leave you no time for others.}} | ||
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| + | {{ForumReplyPost|UserID=Www.cpa1.biz|Date=3 March 2009|Text=Okay, I am preparing the 10 state returns. There were some categories that I was looking for more insight. | ||
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| + | 1) Most of the returns asked for a state number. Is there something I should put there to say PENDING or MULTISTATE or should I ask for the business to apply for these numbers. Regardless, they dont have enough time by the due date of March 15th (S corp) to apply. | ||
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| + | 2) I do see that some state returns are asking for nonresident payments. Is this the composite return taking in payments from non residents as spoken about earlier. | ||
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| + | Thanks, | ||
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| + | Bj}} | ||
Revision as of 15:11, 3 March 2009
Discussion Forum Index --> Advanced Tax Questions --> S corporation has employees in 10 different states
Discussion Forum Index --> Tax Questions --> S corporation has employees in 10 different states
Www.cpa1.biz (talk|edits) said: | 2 March 2009 |
| Almanacers,
I am working with an S corporation that has employees in around 10 different states. They make about a million a year in revenue. I am scared to ask but does this mean that 10 differenet state S corporation returns will need to be filed. Some of the annual payroll for these states are less than a thousand dollars so it is somewhat immaterial. Is there any way around this if all these returns that need to be filed? Please advise. Thanks. | |
Death&Taxes (talk|edits) said: | 2 March 2009 |
| Get a big retainer | |
| 2 March 2009 | |
| Probably not 10. A couple of the states probably don't recognize S status. Those will be C's. | |
| 2 March 2009 | |
| Not only are 10 different state S corporation returns due, but since each state has nexus, you're then responsible for being registered with the Department of State, sales tax, and payroll taxes in each state - regardless of immateriality. | |
Www.cpa1.biz (talk|edits) said: | 2 March 2009 |
| Payroll is already done and filed by paychex by the corresponding department numbers. They sell services. This may be kind of painfull. | |
Southparkcpa (talk|edits) said: | 2 March 2009 |
| Welcome to my nightmare. I have 2 or 3 of these.
You also now have to file the owners 1040 in all states. One thing to watch for, many states have a "composite" return. So if allocated income is say $1,000 to a state, you may be able to pay a 5 to 6 percent flat tax at the corporate level and avoid the shareholder filing in that state. Each state is different.Look at the bright side, tax season is half over. | |
| March 2, 2009 | |
| It's called a huge billing opportunity, but it'll never be enough for the time it takes, and all the other much easier work that you can't do in it's place. It's sad that in this country we have to deal with this foolishness. For a 1 million dollar company, his accounting fee might be his second biggest cost after payroll. | |
| 2 March 2009 | |
| Agree with JR. It is foolishness. Plus apportionment factors are not necessarily the same for different states. On the bright side, if you use Lacerte, it will generate the composite returns for some states. That's fairly new, and a lot easier than doing those returns manually. Still, it sounds like a huge, messy project. Bill well. | |
RoyDaleOne (talk|edits) said: | 2 March 2009 |
| Love Florida, no personal income tax, no S Corporation filing, almost, no partnership filing.
Now C Corporation are like everywhere else. | |
| 2 March 2009 | |
| Does the mere presence of an employees in a state create an income tax filing requirement? For example, I have a client in NY that does marketing for clients in NY. The employees for this client reside throughout the USA. The employees all have input, based upon their specific skills, into the marketing plan.
However, we only file NY income tax returns (as well as the federal when I get around to it). The employer does pay unemployment taxes in each state. The employees all have NY income tax withheld, since the "Convenience of Employer" rules of NY seem to make all wages subject to NY income tax. | |
Death&Taxes (talk|edits) said: | 2 March 2009 |
| The other thought is to partner up. | |
| 2 March 2009 | |
| Roy....even though we are in FL; still the DOR wants an annual report if nexus is established. As well, if the employee lives/works in FL, then filings for UCT-6's. Yes, no income tax on S corp, but still filings = accounting fees :)
Could be MW....if they are 'employees' and not independent, then the existence of an employer/employee relationship indicates nexus.... | |
| March 2, 2009 | |
| Sandy! Just saw your name cleaning up some contact info and wondered, where the heck? And here you are. You doing ok? Where you been? | |
Www.cpa1.biz (talk|edits) said: | 2 March 2009 |
| D&T,
When you are talking about partnering up, are you talking about accounting partnership with partners who specialize. I have been thinking about this for 2010. I am now very active in my state accounting society. | |
Death&Taxes (talk|edits) said: | 3 March 2009 |
| Just working with someone else on this client, who if you are not careful will leave you no time for others. | |
Www.cpa1.biz (talk|edits) said: | 3 March 2009 |
| Okay, I am preparing the 10 state returns. There were some categories that I was looking for more insight.
1) Most of the returns asked for a state number. Is there something I should put there to say PENDING or MULTISTATE or should I ask for the business to apply for these numbers. Regardless, they dont have enough time by the due date of March 15th (S corp) to apply. 2) I do see that some state returns are asking for nonresident payments. Is this the composite return taking in payments from non residents as spoken about earlier. Thanks, Bj | |
