Brad Bradley Company - Certified Public Accountants

Brad Bradley CompanyCertified Public Accountants

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Individual and Business Tax Planning and PreparationWith over 20 years of tax preparation experience, we have the expertise to help you navigate the uncertainties of federal and state tax regulations Home

Remote Assistance

The ease and convenience of having a professional see what you see ensures effective communication to receive the best advice possible.

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Services

Income Tax Preparation for individuals and business, including tax planning and tax reduction strategies.Full-service payroll preparationOther business consulting services

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Secure File Transfer

Much of the information used to prepare financial statements or tax returns is sensitive and confidential. Our secure file transfer portal allows you to send confidential information without concern for its security.

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Download Tax/Payroll Forms

Tax Refund Status

Federal

IRS Form W-4

State

IRS Form W-9

USCIS Form I-9

Pay Taxes

Federal

State

Services

Payroll Services

The tax issues associated with payroll, if not dealt with properly, can quickly become the undoing of just about any business. With years of experience and friendly, accessible staff we want to help you by removing this burden from your shoulders.

Brad Bradley Company has created a password-protected Online Payroll Reporting Service that is customized to our client's needs.

Our Online Payroll Reporting Service makes payroll reporting much quicker, easier and more accurate than the common methods. When you log on, a roster of your employees loads. It is already pre-filled with all the essential information. Simply enter the hours for each hourly employee, and confirm the information regarding your salaried employees.

Please contact us with questions or to sign up for this service.

Informatoin on Minimum Wage and Overtime Pay

Employers' Guide to Workers Compensation

Basic Tax Tips • Contribute to employer funded 401(k)s, IRAs, other qualified retirement accounts • More tips coming soon... Items needed to prepare personal tax return • General Information 1. Copy of previous year's tax return if new client 2. Taxpayer, Spouse, and dependent names, social security numbers, and birthdays 3. Address, phone numbers, email address 4. Dependent care expenses 5. College tuition 6. Status changes a. Marriage, separation, divorce, births, death b. Dependents c. Address d. Sold home or other assets • Income 1. All W-2s, 1099s, K-1s, Social Security Statements a. On securities and property sold, include original purchase date and purchase price 2. Retirement contributions or distributions • Itemized Deductions 1. Medical Expenses a. Prescriptions b. Health Insurance c. Medical Mileage d. Doctors e. Dentists f. Hospitals d. Contacts, glasses, hearing aids 2. Property tax notice 3. Mortgage interest statements 4. Charitable contribution receipts • Estimated tax payment dates and amounts • Copy of voided check for refund direct deposit

Other Services

Business Entity Creation / Consultation Services

The complexities of starting a new business are not always apparent in the beginning. We have had the opportunity to assist hundreds of entrepreneurs set up a business entity that not only helps provide a barrier for personal liability but often allows for certain tax advantages.

Financial Services

Financial planning, especially that of retirement planning is almost inseparable from tax planning.

We have partnered with Colton Reading of MassMutual to assist our clients in their financial planning needs.

Bookkeeping Services

The cost of employing a professional bookkeeper is often greater than most small businesses are willing to pay. So what is usually the solution, the owner of the business spends countless hours trying to either get caught up or stay on top of the bookkeeping. Another possibility is hiring a $10/hour bookkeeper that sometimes can do more damage than good. Talk to us about the advantages of outsourcing this critical but sometimes unpleasant task. You may be surprised at how comparably affordable it can be.

Income Tax Planning and Tax Preparation Services

Please call any time to set up an appointment for tax planning or to have your income tax return(s) prepared.If you need a tax organizer, please call and we would be happy to send one to you.The following forms may be useful in gathering information:

Individual Tax Organizer.pdf

Business Income - Expenses Form.pdf

Business Vehicle Expense Form.pdf

Rental Income - Expenses Form.pdf

Home Office Worksheet.pdf

Tax Issues

LLC vs S Corp
Independent vs Employee
1099 Reporting

LLC vs S Corp

LLC vs. S Corp

There are generally two main reasons for forming either an S Corporation or an LLC. First, the owner(s) of both of these entity types may enjoy limited liability protection. Second, there are opportunities in both entities to allow owners to reduce the amount of income subject to self-employment taxes. S Corporations The main advantage an S-Corporation has over an LLC is the fact that S Corporations have been around for a long time. IRS statutes and regulations and significant case law history have clearly defined how to treat most situations in an S Corporation. There is really no ambiguity on how to establish, operate, report earnings and expenses, and liquidate S Corporations. One of the main reasons many small business owners choose an LLC over an S Corporation is because owners of S Corporations who also work for the company are required by the IRS to receive reasonable compensation for the services they provide. (Click on the link below for guidance on reasonable compensation from the IRS). That means they are required to file quarterly and annual payroll tax returns and issue W-2s at the end of the year. If returns arent timely filed then penalties may be assessed. Limited Liability Companies While LLCs are less predictable than S Corporations because of a lack of IRS guidance or case law, members of LLCs enjoy greater flexibility. There are no payroll requirements for LLC members as there are for owners of S Corporations. Allocations of profits, losses, capital, distributions, etc. do not have to be based upon ownership percentages. Members of LLCs still benefit from liability protection and the opportunity to reduce the amount of income subject to self-employment tax. Example: Roy is married, has no kids, has a mortgage, donates cash to his church, and is self-employed. His mortgage and property tax add up to $10,000 and he makes charitable contributions of $5,000. His business generates $100,000 revenue. His business expenses add up to $50,000. That leaves a taxable profit of $50,000. Sole-Proprietorship Roy will pay income tax (approx. $2,960) on $50,000 gross income ($50,000 profit from self-employed business). Roy will also pay self-employment tax (approx. $7,268) on the profit of $50,000 from his self-employed business. The total tax bill is $10,228. LLC In order to benefit from a reduction in self-employment taxes, Roy and his wife, Karen form a multi-member LLC that will be taxed as a partnership. For the sake of simplification, her ownership percentage is so low all the profits go to Roy. Roy pays himself $17,000 in guaranteed payments for his services, which reduces the businesss profit to $33,000. Roy will pay income tax (approx. $3,320) on $50,000 gross income ($33,000 LLC profit + $17,000 guaranteed payments). Roy will only pay self-employment tax (approx. $2,471) on $17,000 from guaranteed payments. The total tax bill is $5,791. S-Corporation Roy forms an S Corporation which he owns 100% and pays himself $17,000 in wages for his services, which reduces the businesss profit to $33,000. Roy will pay income tax (approx. $3,320) on $50,000 gross income ($33,000 LLC profit + $17,000 W-2 wages). The company and Roy will pay employment taxes (approx. $2,471) on $17,000 from W-2 wages. The total tax bill is $5,791. The employment taxes will probably be due at least quarterly and the company will also be required to pay federal and state unemployment taxes (approx. $255). The company will be required to file quarterly/annual payroll tax returns and issue a W-2. In this case, Roy chooses to be an LLC because he will save about $4,437 in taxes and wont have to bother with payroll reports and requirements. LLC S CorpSelf- Pays self-employment Reasonable compensationEmployment taxes on guaranteed to owners who provideTax payments to owners who services for S Corp provide services for LLC According to operating Must be done according toDistributions agreement - can be ownership percentages distributed unequally Must have at least 2 Able to have only oneOwners owners to benefit from owner but may not have self-employment tax more than 75 owners; savings other restrictions applyIRS Filing 1040 Sched C, E, or F, 1120SRequirements 1065*, 1120, 1120S Some states haveState Filing unfavorable minimum No minimum taxes in UtahRequirements taxes for LLCs; Utah has for S Corporations no minimum LLC taxAnnual Not required RequiredMeetings * Most common

Reasonable Compensation

Independent vs Employee

Independent Contractor vs. Employee

A common problem among small businesses is the incorrect treatment of employees as independent contractors. If the IRS reclassifies an independent contractor as an employee, the employer could become responsible for the employment taxes that should have been withheld from the employee's wages as well as the employer's matching portion of Social Security and Medicare. In addition, the employer could be responsible for federal and state unemployment taxes and then be assessed interest and penalties on top of everything else. Because the taxes, interest, and penalties for incorrect treatment can potentially be so great, it is very important for small business owners to make sure they understand the difference between an independent contractor and an employee. If the following conditions exist between you and your payees, the IRS would probably classify them as employees: 1. Behavior Control an employer has the right to control how an employee does the work a. You tell your payees where to be, when to be there, and what to do when they're there b. The work must be done personally by your payees c. You provide training 2. Financial Control a. There is no risk of loss to your payees for the work they perform • They are not required to pay any business expenses personally b. Your payees don't have their own equipment, tools, materials, etc c. They don't (and sometimes can't) work for anyone else d. Your payees are paid either hourly or salaried instead of by the job or a commission 3. Relationship a. There is no written contract designating your payee as an independent contractor b. You provide benefits c. You maintain an ongoing business relationship d. The payees services are an integral part of your company's continuing operations 4. Other Considerations less important but considered nonetheless a. Employer's right to discharge the payee b. Payee's right to terminate the business relationship c. Part-time or full-time work requirements d. Work required to be done on employer's premises e. Setting of hours to do the work f. Setting order of sequence of the work g. Interim oral or written reports requirement These considerations assist the IRS in making a determination of employee status and, most likely, no one consideration by itself will persuade the IRS one way or the other. However, if many or even only some of the above conditions exist in your contractual agreements (written or unwritten) with those who provide services for your company, you may want to reconsider either paying them as an employee or changing the agreement.Below are a couple of links to the IRS and State of Utah for some guidance on this issue.
Plan-vision

IRS Publication 1779, Independent Contractor or Employee...

Utah Department of Workforce Services Guidelines for Employment Status (Independent Contractors)

1099 Reporting

IRS 1099 Reporting Requirements

Information and expectations regarding IRS 1099 reporting requirements are not always clear. Below is a brief explanation of IRS expectations to help you avoid the potential penalties ($250 or more per 1099) associated with a failure to file 1099s.If you desire our assistance in preparing the 1099s your company should be issuing, or if you are still unsure of your reporting obligations, please contact us to discuss it.1099 Filing deadlines: to recipients by 01/31/20XX; to IRS by 02/28/20XX (or 03/31/20XX if filed electronically)Who must file Form 1099?In general, the IRS requires any individual or company engaged in a trade or business to report payments made to others in excess of $600 for the calendar year.Personal (non-business) payments are not reportable. These personal payments are also non-deductible on your business tax return.To whom should a business issue a 1099?Anyone who received at least $600 in:RentServices (including parts and materials)Prizes and awardsOther income paymentsEtc.Use Form W-9 to request the payees information for 1099 reporting. A blank W-9 can be downloaded at www.irs.gov. Hint: Its best to do this at the beginning of the year rather than at the end.ExceptionsSome payments are not required to be reported on a 1099. They include:Payments to a corporation (Attorneys fees must be reported, even if paid to a corporation)Payments for merchandise, telegrams, telephone, freight, storage, and similar itemsWages paid to employeesPayments to a tax exempt organizationPayments to a federal or state governmental agency

IRS Instructions For 1099 Filing

Remote Assistance

We utilize the technology and convenience of Remote Assistance through LogMeIn.com, a web-based on-demand remote desktop solution.

When you enter the six digit PIN, with your permission, a small .exe file automatically downloads to your PC. It's the interface through which we can conduct remote support, transfer files, etc. This applet automatically removes itself from your PC at the end of the remote session.

The applet provides remote Customers with:

Interactive Chat and detailed Session History

Prompts to permit or deny technician access to all functions

File Transfer to the technician

Ability to stop Remote Control or disconnect at any time

Secure File Transfer

Instructions for Uploading QuickBooks Backup

Instructions for Uploading QuickBook

Instructions for Uploading QuickBooks Backup

Backup QuickBooks 2006 or older 1. Open QuickBooks 2. Click on File then choose Back Up 3. In the middle of the dialogue box that pops up, there is a field with the label Location:. Click on the Browse button to the right 4. Click on the My Documents button on the left of the next dialogue box that pops up 5. Click on Save 6. You may be asked if you want to replace the existing backup. If so, click Yes 7. Click OK 8. Once again, you may be asked if you want to replace the existing backup. If so, click Yes 9. Click OK when your backup is complete.Backup QuickBooks 2007 or newer 1. Open QuickBooks 2. Click on File then choose Save Copy or Backup 3. Choose Backup copy and click on Next 4. Choose Local Backup and click on Next 5. Click on the Browse button to the right 6. Scroll up and select My Documents 7. Click on OK 8. You may be asked if you want to replace the existing backup. If so, click Yes 9. Click OK 10. Once again, you may be asked if you want to replace the existing backup. If so, click Yes 11. Choose Save it now and click FinishUpload Backup File 1. Go to http://www.bradbradley.com/ 2. Click on "Secure File Transfer" 3. Fill in the pertinent information 4. Click on the Browse button 5. Click on the My Documents button on the left of the next dialogue box that pops up 6. Find the QuickBooks backup file you created in the steps above (it should be YourCompanyName.qbb) and double-click on it. 7. Click on the Upload Files button.Please dont forget to provide us with your QuickBooks Admin password if there is one.

Back to Secure File Transfer

Contact Us

826 East 12300 South, Suite 1

Draper, UT 84020

(801) 572-6684

(801) 572-6597 fax

Monday - Friday

9 AM to 5 PM (Mountain Time)