Intuit Phases Out Time Tracker

October 21, 2011 • Jeff Cecchini • No comments

Critical Service Notice — Intuit QuickBooks Time Tracker

After much consideration, we’ve made the difficult decision to discontinue QuickBooks Time Tracker effective December 1, 2011. We know this decision impacts your business and we want to provide options that we hope assist you in making the best choice.

Help through the transition:
First, your time tracking data is safe. You will continue to have access to QuickBooks Time Tracker until December 1, 2011. This will give you the time you need to sync your time data and find a new time tracking solution.

During this time, we are offering the following assistance:
• Free service for existing customers. From October 6, 2011 until December 1, 2011, QuickBooks Time Tracker services will be provided free of charge, allowing you time to test and migrate to another solution.

• Free Trial. eBillity Time Tracker & Billing Manager is extending a free trial to allow you to test their solution and ensure it’s right for your business. eBillity, a global time tracking solution provider since 2007, has launched a new product, eBillity Time Tracker and Billing Manager, with comparable features to you current offering. To learn more about eBillity, please visit the Intuit Application Center.

• Data access. After December 1, 2011, your time tracking data will no longer be accessible. Please be sure to download your data files. You can learn how here.

Our Continuing Commitment
We’re available to work with you in the coming weeks to make this transition as easy as possible. While we regret that we can no longer offer QuickBooks Time Tracker we hope you’ll find that either QuickBooks Online Plus or eBility Time Tracker & Billing Manager provides a good replacement solution. Learn more.

Click here to learn more about the shutdown and suggested solutions. For technical and general questions about the discontinuation of QuickBooks Time Tracker please contact care.

Thank you again for you supporting Intuit and QuickBooks Time Tracker.

Sincerely,

Judd Jacobs
Intuit QuickBooks Time Tracker

Source: http://community.intuit.com/posts/critical-service-notice-intuit-quickbooks-time-tracker-3

In QuickBooks Add-ons

Review of QuickBooks Connect

October 12, 2011 • Jeff Cecchini • No comments

QuickBooks Connect is a web application found in the Intuit Apps Marketplace and is designed to allow some basic remote functionality surrounding Customer information.

The web app works with Intuit Sync Manager which provides bi-directional syncing between QuickBooks (Windows) and the web application. You can create new and view historic: Invoices, Sales Orders, Sales Receipts, Purchases Basic Customer information, Invoice, Payments, and Sales Orders. View/Edit basic Customer informaton is also a feature.

Sounds great, but in the 60 minutes of evaluating the QuickBooks Connect, I found it disappointing.

It’s a great idea but implementation is very poor at this point. This is a very rough web app. I would have expected so much more from Intuit, who knows that the need/expectation for the cloud has been here for a while and will remain and has the greatest resources and technical knowledge of QuickBooks.

Here’s what’s wrong with the existing feature set’s functionaity:

-Cannot set new Customer Sales Tax defaults (rate or Tax Code), nor does it pull from QB desktop’s new co default. Only after it takes a round trip via sync mamager, then a manual refresh of the browser does the default sales tax code & sales tax item show up.

-Service Date column on an invoice created by QB Desktop will not show on QuciBooks Connect (QBC) Invoice (just blank) even though the template was uploaded and is being used in previewed QBC Invoice.

-Uploaded QB Desktop template does not get set as default (even though it’s uploaded). How to set any default template? Must select each time. Royal pain. Easy to forget.

-Textboxes added to a custom template do not show on the invoice QBC creates.

-Missing Mr/Mrs, First Name, MI, Last Name fields and Contact fieldswhich make it really tough to know who you are calling or emailing (the phone number & email fields are there). That’s essential info.

-Connect web app seems to lock up when saving (maybe when a sync has just happened and you are in the middle of a browser transaction (updating a customer).

-Customer Center Customer List looses customers sometimes and I hade to refresh browser. (after going in/out of a customer’s transaction screens).

-Sometimes transaction can’t be save. the error message doesn’t say why…that’s not helpful to know what to do to resolve it.

As a Intuit Certified QuickBooks ProAdvisor, I’d really like to reccommend this to three customers that really needs this right now, but I don’t think it’s ready for a customer’s use…too buggy.

I hope development continues and it becomes robust & feature rich app.

In QuickBooks Add-ons

End of Quarter Payroll Tax Review

October 5, 2011 • Jeff Cecchini • No comments

Here are some tricky things that we often have to fix for clients at the end of each quarter before the tax returns can be filed:

Tax rates aren’t correct

This happens for three reasons:

UI Rates typically change at the beginning of the calendar year and must be updated in QuickBooks.
Rates sometimes change mid-year.
For South Dakota clients, often times the QuickBooks tax table updates erroneously override the SD Surcharge rate to 0.1% when it is supposed to be 0.00% for a quarter.

Tax liabilities in the “Pay Scheduled Liabilities” area of the Payroll Center don’t match the tax return.

This happens if the rate was changed in QuickBooks after payroll has been run for that period (year, quarter, etc.), such as if you find that the rate wasn’t correct and you change it after the fact. Tax liabilities need to be very carefully adjusted.

We can do a Quarter-end payroll check-up:

1. Verify and change tax rates if needed.

2. Adjust payroll liabilities (if necessary).

3. Determine any remaining end of quarter tax payments.

4. Print out payroll tax returns for you to file.

5. Resolving any other issues discovered are not included in our flat check-up rate, additional charges may apply.

Contact us today. We can offer this service via remote login.

There is a simple way to prevent these issues from happening is to make sure the proper rate is set in QuickBooks before the right before the first payroll whose pay date (not pay period ending) is applicable to the rate. (List->Payroll Item List, select appropriate item, right-click, select edit)

In CA Payroll Taxes, Payroll, Payroll Taxes, SD Payroll Taxes

Tip: How to log off another QuickBooks user

September 30, 2011 • Jeff Cecchini • No comments

QuickBooks Messenger is a feature introduced in QuickBooks 2009 that allows communication between QuickBooks users in Multi-user mode. You must be signed into QuickBooks in Multi-user mode in order to use the QuickBooks Messenger.

Opening QuickBooks Messenger

In Multi-user mode, you will notice a QuickBooks Messenger icon in your system tray (located in the bottom right portion of your screen). The messenger is automatically started whenever you are logged in. Double-click this icon to launch the messenger.

Chatting with other users

When you receive a notification that another user has logged into the company file, you can click Chat on the notification window to begin a conversation with that user. You can also right-click the QuickBooks Messenger icon in your system tray and select Chat with to start a chat with another user.

The Admin user can chat with other users logged into the company file by clicking the Actions drop-down arrow and selecting Send Message to Logged In Users.

Note: It is not possible to view a log of Messenger conversations between users at this time.

Available status

You may wish to show other QuickBooks users your status (busy, away, or otherwise). Change your available status by clicking the drop-down arrow that displays your username. Select the status that applies to you, and it will be displayed for other users to see.

Disabling QuickBooks Messenger

To disable the QuickBooks Instant Messenger feature:

In multi-user mode, sign in as Admin.
Go to File/Utilities.
Disable QuickBooks Instant Messenger.

Closing QuickBooks for another user

The Admin user can close QuickBooks for another user:

Launch QuickBooks Messenger.
Click the Actions drop-down arrow.
Select Close Company File for Users.
Select the user whose QuickBooks you want to close.
Click Close Company File.
In the Confirmation window, click Yes.

Source: http://support.quickbooks.intuit.com/support/articles/INF12673

In QuickBooks Tips & How-to's, Software

Collections of Past Due Accounts Receivable-Time is Not on Your Side!

September 14, 2011 • Jeff Cecchini • No comments

Why should you take action as soon as your accounts receivable are past due? Because time is not on your side. The longer you wait to begin collection actions, the less likely it becomes that you’ll receive what you’re owed.

The Commercial Collection Agency Association’s study dated 10/18/2004, shows collectability of delinquent commercial debts at time intervals after the due date.

Due date : 94.9%
30 days: 89.9%
60 days: 81.3%
90 days: 69.6%
6 months: 52.1%
9 months: 39.1%
1 year: 22.8%
2 years: 9.3%

In future posts we’ll cover collection strategies and the establishment of credit guidelines and procedures to help reduce receivables from becoming delinquent.

In Business Management, Cash Flow Management

Speeding up Cash Flow Tip #1: Collect retainers up front.

September 14, 2011 • Jeff Cecchini • No comments

Speeding up Cash Flow Tip #1: Collect retainers up front.

This tip offers at least four benefits:

1. Confirms clients’ committment of your agreement, which includes their making payment for your service or product.

2. Reduces your risk of not getting paid because you have already received partial payment.

3. Requires the use by your client of a minimum number of your billiable hours.

4. Provides cash now.

In Business Management, Cash Flow Management

Pay Vendors by Direct Deposits from QuickBooks

August 27, 2011 • Jeff Cecchini • No comments

To pay 1099 vendors (sometimes referred to as independent contractors) by direct deposit, you must first be subscribed to the Direct Deposit service and have it already activated for paying employees. How?

Important: Direct Deposit for vendor payments is not currently supported for Assisted Payroll users.

Then follow the instructions below to activate Direct Deposit for paying vendors and to set up your vendors to receive direct deposit payments.

STEP 1. Activate Direct Deposit for paying vendors

Once you have Direct Deposit activated for paying employees, you can activate it for paying 1099 vendors.

To do this task

From the Employees menu, choose My Payroll Service > Account/Billing Information.
In the Direct Deposit section in the lower right of the Account Maintenance window, click Activate next to 1099 Vendors.Important: You are not asked for a company bank account since direct deposit payments to vendors are drawn from the same bank account you use to make payroll direct deposits. This is the bank account shown in this Direct Deposit section.
Provide your Direct Deposit PIN (the same PIN you use for sending payroll direct deposits).

STEP 2. Set up a 1099 vendor to receive direct deposit payments

Before you can pay 1099 vendors by direct deposit, you need to notify them and collect their bank account information. You can use the same sample forms used for employees, which are included in the Go online Direct Deposit Getting Started Guide.

Then you need to update the vendor’s information in QuickBooks.

To do this task

From the Vendors menu, click Vendor Center.
From the list on the left, select the 1099 vendor you want to set up for direct deposit.
Click Set Up Direct Deposit in the Vendor Information section.
In the Direct Deposit window, select the Use Direct Deposit for checkbox. This checkbox serves as a preference setting; whenever you pay this vendor, QuickBooks assumes that you want to pay by direct deposit.
Enter the vendor’sbank account information.Where to find bank routing and account numbers
If you want Intuit to send an email notification to the vendor when the payment processes, select the checkbox and be sure that the email address shown (which comes from the vendor’s account information) is valid.
Click OK.

STEP 3. Pay a 1099 vendor by direct deposit

You use Write Checks to pay a vendor by direct deposit. (Pay Bills does not currently support vendor payment by direct deposit.) The vendor must be set up to receive direct deposit payments as described above.

To do this task

From the Banking menu, click Write Checks. (You must have Checking permissions to write checks.)
Click the drop-down arrow on the Pay to the Order of line, and select a vendor who is set up to receive direct deposit payments.QuickBooks marks the check as a Direct Deposit check and checks the Online Payment checkbox. QuickBooks also supplies a check date that is two banking days in the future. Although you can change this date, remember that Direct Deposit checks must be sent to the Direct Deposit service by 5:00 p.m. (Pacific time) at least two banking days before the check date.Important: When you select a vendor who is set up to receive direct deposit payments, QuickBooks supplies a QuickBooks account entry (for the Bank Account field) that matches the real bank account you specified when you set up your Direct Deposit service (for both payroll and vendor payments).
You can change the QuickBooks account for accounting purposes, but direct deposit funds are always drawn from the actual bank account shown in the Direct Deposit section of the Account Maintenance window. (To see the Account Maintenance window, choose Employees > My Payroll Service > Account/Billing Information.)
Complete the check and click Save & Close or Save & Next.When you click Save & Close, QuickBooks reminds you that you must send the direct deposit transactions to Intuit for processing.
In the Confirmation and Next Steps window, click Send to Intuit.
In the Send/Receive Data window, click Send to send payment transactions.If you also have Payroll permissions, both vendor payment and payroll transactions are sent. If you don’t have Payroll permissions, only vendor payment transactions are sent.

How to set new employee default payroll defaults in QuickBooks

August 22, 2011 • Jeff Cecchini • No comments

To set new employee default payroll defaults in QuickBooks:

Go into the Employee or Payroll Center, make sure the “Employee” tab is selected
Click “Manage Employee Information” button just above.
In the dropdown menu, select “Change New Employee Default Settings”
You can adjust:
Payroll Schedule or Pay Frequency;
Earnings, Additions/Deductions/Co Contributions items;
“Taxes” and “Sick/Vacation” buttons.
Make sure all of these are set properly, then click the “Ok” button.

In QuickBooks Tips & How-to's

Wage Compensation for S Corporation Officers

August 22, 2011 • Jeff Cecchini • No comments

FS-2008-25, August 2008

Corporate officers are specifically included within the definition of employee for FICA (Federal Insurance Contributions Act), FUTA (Federal Unemployment Tax Act) and federal income tax withholding under the Internal Revenue Code. When corporate officers perform services for the corporation, and receive or are entitled to receive payments, their compensation is generally considered wages. Subchapter S corporations should treat payments for services to officers as wages and not as distributions of cash and property or loans to shareholders.

S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates.

The Internal Revenue Code establishes that any officer of a corporation, including S corporations, is an employee of the corporation for federal employment tax purposes. S corporations should not attempt to avoid paying employment taxes by having their officers treat their compensation as cash distributions, payments of personal expenses, and/or loans rather than as wages.

This fact sheet clarifies information that small business taxpayers should understand regarding the tax law for corporate officers who perform services.

Who’s an employee of the corporation?

Generally, an officer of a corporation is an employee of the corporation. The fact that an officer is also a shareholder does not change the requirement that payments to the corporate officer be treated as wages. Courts have consistently held that S corporation officer/shareholders who provide more than minor services to their corporation and receive or are entitled to receive payment are employees whose compensation is subject to federal employment taxes.

The Treasury Regulations provide an exception for an officer of a corporation who does not perform any services or performs only minor services and who neither receives nor is entitled to receive, directly or indirectly, any remuneration. Such an officer would not be considered an employee.

What’s a Reasonable Salary?

The instructions to the Form 1120S, U.S. Income Tax Return for an S Corporation, state “Distributions and other payments by an S corporation to a corporate officer must be treated as wages to the extent the amounts are reasonable compensation for services rendered to the corporation.”

The amount of the compensation will never exceed the amount received by the shareholder either directly or indirectly. However, if cash or property or the right to receive cash and property did go the shareholder, a salary amount must be determined and the level of salary must be reasonable and appropriate.

There are no specific guidelines for reasonable compensation in the Code or the Regulations. The various courts that have ruled on this issue have based their determinations on the facts and circumstances of each case.

Some factors considered by the courts in determining reasonable compensation:

Training and experience
Duties and responsibilities
Time and effort devoted to the business
Dividend history
Payments to non-shareholder employees
Timing and manner of paying bonuses to key people
What comparable businesses pay for similar services
Compensation agreements
The use of a formula to determine compensation

Medical Insurance Premiums treated as wages.

The health and accident insurance premiums paid on behalf of the greater than 2 percent S corporation shareholder-employee are deductible by the S corporation as fringe benefits but are reportable as wages for income tax withholding purposes on the shareholder-employee’s Form W-2. They are not subject to Social Security or Medicare (FICA) or Unemployment (FUTA) taxes. Therefore, this additional compensation is included in Box 1 (Wages) of the Form W-2, Wage and Tax Statement, issued to the shareholder, but would not be included in Boxes 3 or 5 of Form W-2.

A 2-percent shareholder-employee is eligible for an AGI deduction for amounts paid during the year for medical care premiums if the medical care coverage is established by the S corporation. Previously, “established by the S corporation” meant that the medical care coverage had to be in the name of the S corporation. However, in Notice 2008-1, the IRS allows a plan established in the shareholder’s name to qualify is certain very specific conditions are met.

“A plan providing medical care coverage for the 2-percent shareholder-employee in an S corporation is established by the S corporation if: (1) the S corporation makes the premium payments for the accident and health insurance policy covering the 2-percent shareholder-employee (and his or her spouse or dependents, if applicable) in the current taxable year; or (2) the 2-percent shareholder makes the premium payments and furnishes proof of premium payment to the S corporation and then the S corporation reimburses the 2-percent shareholder-employee for the premium payments in the current taxable year. If the accident and health insurance premiums are not paid or reimbursed by the S corporation and included in the 2-percent shareholder-employee’s gross income, a plan providing medical care coverage for the 2-percent shareholder-employee is not established by the S corporation and the 2-percent shareholder-employee in an S corporation is not allowed the deduction under § 162(l).

In order for the 2-pecent shareholder-employee to deduct the amount of the accident and health insurance premiums, the S corporation must report the accident and health insurance premiums paid or reimbursed as wages on the 2-percent shareholder-employee’s Form W-2 in that same year. In addition, the shareholder must report the premium payments or reimbursements from the S corporation as gross income on his or her Form 1040, U.S. Individual Income Tax Return.”

Payments of the health and accident insurance premiums on behalf of the shareholder may be further identified in Box 14 (Other) of the Form W-2.
Schedule K-1 (Form 1120S) and Form 1099 should not be used as an alternative to the Form W-2 to report this additional compensation.

Source: http://www.irs.gov/irb/2008-02_IRB/ar10.html
Sourrce: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/S-Corporation-Compensation-and-Medical-Insurance-Issues
Source (original)http://www.irs.gov/newsroom/article/0,,id=200293,00.html

Updated 11/03/2012

In CA Payroll Taxes, IRS Tax Info, Payroll, Payroll Taxes, SD Payroll Taxes