![]() Moreover, if you are employed by the government or in a professional capacity, your avoidance of your household employment tax obligations could put your job or career in jeopardy. IRS audit rates continue to increase, particularly for higher income taxpayers, so it is the family – not the nanny – that is assuming most of the financial risk of such an employment relationship. In the event of an audit, you, as the household employer, will be ultimately responsible for all FICA and other employment taxes that are owed to the government on the nanny’s wages, even if you did not withhold the nanny’s share because you had been paying her “under the table”. ![]() To me this was a clear message that he doesn't care.Although household employment tax laws certainly add an additional expense to your childcare budget, you really can’t afford not to comply with the law.Īlthough some nannies may even ask to be paid “under the table”, a family that agrees to such an arrangement is taking significant legal and financial risks. Even The Canadian director of Xero comments where limited to telling me " I understand that you need to make important decisions in the best interest of your firm". They didn't care, they didn't apologize, they didn't even acknowledge what they did was wrong, it was evident that they prioritized their growth over their existing partners, at least in Canada. This actually happened to me in Canada, and the response of the Canadian Xero team was simply that they didn't intend on these promotions to be received by the clients of my firm. The problem isn't that you will loose your clients, but this makes you look really bad in front of your clients that you are recommending a software that recommends other accountants outside your firm. When this happen your clients will receive advertisements about other Accounting firms partnered with Xero. As a firm Your clients will know your using Xero and as a result will likely start to follow Xero using social media. As an accounting firm it is a very risky move to partner with the Xero software platform. Outside of Xero billing for things that were supposed to be free, which after complaining they claim they will reconcile but I had to threaten with a lawyer to get that reaction. Read moreĪs an accounting firm I would be very cautious with using Xero or recommending it to clients. Outside of Xero billing for things that were supposed. I should probably find an accountant to assist me with this, but I haven't found an accountant who understands both craft businesses and Xero.Īs an accounting firm I would be very cautious with using Xero or recommending it to clients. This will be more valuable as my company grows. I like being able to match multiple invoices to bank deposits because I usually don't run to the bank for each check. I've had a much better experience importing data from financial institutions because Xero uses a well-known importing service that is trusted by the institutions. (I should have checked this more closely when I set up my accounts because it's a New Zealand company, and the previous product was local.) This means I will need to double-check all my transactions for 2018 and the IRS has my vastly overestimated tax payment until I can do that and file my return on an extension. ![]() ![]() It's been easier to use Xero than I expected, but I had a nasty surprise at tax time when I realized the default accounts/descriptions for expenses did not correlate 1:1 to IRS categories. It's been easier to use Xero than I expected, but I had a nasty surprise at tax time when I realized the default accounts/descriptions for expenses.
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