A Certified QuickBooks ProAdvisor Offers Advice on Using Key Features and Preparing for Year-End
Marianne Antuzzi has been self-employed as a bookkeeper since 1987, and she became a Certified Bookkeeper as well as a Certified QuickBooks ProAdvisor® in 1999. She spoke with Lise Quintana, editor of the QuickBooks Payroll Bulletin, about using Intuit QuickBooks Payroll, classifying workers correctly, and preparing for year-end.
QuickBooks Payroll Bulletin: Tell us about you and your practice.
Antuzzi: My business serves various industries and individuals, which is what keeps it very exciting. I started training individuals and businesses on the QuickBooks programs in 1999. It's a great accomplishment to me when I see someone excited about using QuickBooks programs once I've trained them.
QBPB: Do you have one area of specialty?
Antuzzi: Not really. I do a lot of payroll, bill paying, and financial reporting as well as year-end tax compilations.
Using QuickBooks Payroll
QBPB: QuickBooks Payroll has made some substantial improvements since 2007. What do you think has been the most useful to make your clients' payroll easier?
Antuzzi: Definitely the ability to enter hours outside the time sheets, directly into the Pay Employees screen. They've simplified it so much that when there are no other changes to the payroll, the processing is very fast. It took some getting used to in 2007, but I must say I do like scheduling payrolls on a weekly or bi-weekly basis. I have clients with employees—some that are paid weekly, some that are paid bi-weekly—and it's nice being able to set up those pay schedules.
QBPB: What would you say is the toughest part of running payroll—the part that gives most clients problems?
Antuzzi: If I am not doing the payroll, if I'm talking to someone who's going to be doing their payroll, I would say it's setting up the payroll items. They really need to be sure they understand how it's going to affect the payroll, the financial reports, and the payroll reporting. Once the payroll items are set up, the payroll runs very smoothly.
QBPB: Is there a certain procedure that you would recommend?
Antuzzi: I think they need to call a Certified ProAdvisor and have them set it up! This is especially true if someone isn't very familiar with payroll and how things like 401(k) deductions work. QuickBooks Payroll does default to the correct settings, but some people start messing with those settings and they shouldn't. And employers should be sure not to make general mistakes, like not getting the hours on paychecks right.
Classifying Workers
QBPB: How about classifying workers as employees versus independent contractors?
Antuzzi: Yes! Employers need to be very sure that when they're paying independent contractors, they fall within the requirements of the IRS.
QBPB: What requirement gives people the most problems?
Antuzzi: From what I have seen, I would say that the biggest issue is that employers set up someone as an independent contractor who's working 40 hours per week for them, and yet the employer feels that it's just for the short term, just for the interim, and that person is looking for "other projects" elsewhere—other clients to establish they are in business—but they're not.
QBPB: Is there a checklist of questions to ask yourself to differentiate an independent contractor from an employee?
Antuzzi: Yes there is. If you go to http://www.irs.gov/businesses/small/article/0,,id=99921,00.html, there's a whole page to help you with that.
QBPB: A lot of employers end up hiring seasonal help. What advice do you have for those employers?
Antuzzi: Just be sure that you have all the information for your employee before you generate a payroll for them. Get Forms W-4 and I-9 completed prior to issuing payroll. Make sure that all your new hire paperwork is done. For independent contractors, make sure you get Form W-9 completed when payment is issued the first time. Don't wait until the end of the year when 1099s need to be issued. That's enough to pull a bookkeeper's hair out!
Preparing for Year-End
QBPB: We're heading into tax year-end. What advice do you have for your clients or for anyone who's preparing their payroll to get ready for tax year-end?
Antuzzi: I feel the most important issue is to make sure that all the employees' addresses are current and to double-check their Social Security numbers before the W-2s are issued. If the information is wrong at this point, they're still going to have DE 6s to amend, but at least it's before the W-2s go out at the end of the year. They need to confirm employee names and addresses with the employee, and they can confirm the Social Security numbers online by going to www.ssa.gov/employer and clicking on the "Verify Social Security Numbers Online" link on the left.
I guess the other year-end issue would be to make sure they do the correct calculations to employee compensation, such as personal use of company vehicles and the percentage that has to go against taxable wages. Hardly anybody does that, but by law, they're supposed to. Employers should also make sure that they haven't over-withheld for their employees' 401(k)s for the year. They should make sure that's paid back and doesn't become a non-taxable issue.
QBPB: Let's say I'm new in my business and I have not yet engaged any kind of professional help in doing my payroll or taxes, and I'm coming to you for the first time. What should I bring to you?
Antuzzi: Bank statements, backup documentation for bills that were paid, any type of cash receipts journal if sales tax is applicable, all reports for payroll that was processed, and any credit card statements. If the business is a corporation, then I'd need the prior-year balance sheet.
QBPB: And if I wanted help with my year-end filings, how far in advance should I come to you?
Antuzzi: That depends on how many employees and what type of business. The sooner the better—prior to December would be a good place to start. There always seem to be issues and questions to go over. You don't want to take it right up to the tax deadline.