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How would California know that a business paid me?
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Date: September 13th, 2024 12:41 PM Author: infuriating yarmulke persian If I work as a contractor for a business in California and it asks me for federal w9 form and writes me a check. That w9 form obviously goes to irs. But how does California get that I was paid If I'm not asked to fill out any California state forms? On their California taxes are they somehow going to inform that they paid me specifically? (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48084765) |
Date: September 13th, 2024 12:45 PM Author: Racy old irish cottage It's all handled on the computer (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48084778) |
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Date: September 13th, 2024 1:02 PM Author: infuriating yarmulke persian But does a local California business fill out any form that identifies me as the payee to california tax board the same way that w9 form identifies me to irs? (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48084833) |
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Date: September 13th, 2024 1:04 PM Author: talking skinny woman They know (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48084842) |
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Date: September 13th, 2024 1:12 PM Author: infuriating yarmulke persian How?? (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48084873) |
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Date: September 13th, 2024 1:11 PM Author: Racy old irish cottage The computer handles that (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48084872) |
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Date: September 13th, 2024 1:12 PM Author: infuriating yarmulke persian What computer? If info is not provided to them (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48084882) |
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Date: September 13th, 2024 1:14 PM Author: Racy old irish cottage The California Franchise Tax Board has computers that handle this for them. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48084890) |
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Date: September 13th, 2024 3:36 PM Author: Razzmatazz chapel imagine hiring a “consultant” that hasn’t even heard about computers. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48085489) |
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Date: September 13th, 2024 1:15 PM Author: cyan telephone (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48084892) |
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Date: September 13th, 2024 1:31 PM Author: infuriating yarmulke persian So you're saying they can't get me unless I self report California tax (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48084966) |
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Date: September 13th, 2024 1:36 PM Author: Self-centered Silver Pisswyrm Lodge Isn't the business going to send a copy of a 1099 to you, the IRS, and the California FTB? (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48084972) |
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Date: September 13th, 2024 3:12 PM Author: infuriating yarmulke persian By 1099 u mean w9 form? 1099 is just the type of contract as opposed to w2. Do they actually send w9 to California ftb? (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48085419) |
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Date: September 13th, 2024 3:22 PM Author: multi-colored box office masturbator A W9 is a request for tax ID number. Form 1099 is a non employee income reporting form. If a California business sends you a Fed 1099 they should have sent a 1099 to the state even if no state tax is withheld. This applies even if you are not a CA resident. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48085451) |
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Date: September 13th, 2024 3:31 PM Author: infuriating yarmulke persian But isn't fed 1099-nec sent to anyone who got paid over $600? It gets sent to a state if the source of income is california. So if I am a consultant doing business in 50 different states with my office in florida, and got paid $1000 by a california hospital it reports that amount like as if my source of income is california? (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48085475) |
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Date: September 13th, 2024 4:57 PM Author: multi-colored box office masturbator Technically, they are supposed to file a 1099 in California, even if you never set foot in California and you are subject to tax as an independent contractor. Here's an article: https://www.palmspringstaxandtrustlawyers.com/nonresidents-working-remotely-for-california-businesses/
In practice, it depends upon what the business does. You may have to ask if they filed a 1099 for you in CA. |
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Date: September 13th, 2024 6:04 PM Author: Cocky blue stock car lay Cali (and NY) can access federal records regardless (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48086155) |
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Date: September 13th, 2024 7:58 PM Author: Fragrant amethyst senate police squad IRS shares with all states that have income tax, as far as I can tell. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48086566) |
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Date: September 14th, 2024 1:03 PM Author: infuriating yarmulke persian Are you saying that if a Florida consultant does 10% (remote) work in california, 10% in ny, etc he must file taxes in all of those states like some basketball player who physically came to the state and got paid $1mil per game? (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48088322) |
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Date: September 14th, 2024 2:27 PM Author: slimy library athletic conference Yes. That's the rule. Most states have some deminimis exception where it doesn't apply if you were there for a week for business. But California does not. I went to a conference in California last year and my stupid employer withheld the equivalent CA tax. I had to request a refund of like $400. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48088522) |
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Date: September 14th, 2024 3:27 PM Author: infuriating yarmulke persian I am not actually stepping foot in California. Its different if u physically worked there. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48088693) |
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Date: September 17th, 2024 10:02 PM Author: milky partner garrison (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48101819) |
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Date: September 17th, 2024 10:01 PM Author: milky partner garrison (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48101817) |
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Date: September 13th, 2024 3:20 PM Author: infuriating yarmulke persian Ah just got it. https://www.tax1099.com/state-filing/california-1099-filing-requirements
Basically the employer will send 1099-nec to california ftb if employer thinks source of income is from california. So I need to call the accounting dept of the group and ask them what they think is the source of my income if i consult from out of state. Whether I am a person or llc doesn't really matter. |
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Date: September 13th, 2024 3:39 PM Author: mildly autistic erotic factory reset button pocket flask Don’t worry, California probably hasn’t spent any time trying to figure out how capture taxes owed on such a unique situation as a California company using out of state contractors.
Seriously though, if you did the work in California you owe. If the work was not performed in California you don’t owe California anything. NOT LEGAL ADVICE. |
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Date: September 13th, 2024 3:50 PM Author: infuriating yarmulke persian So if I never stepped foot in California and consult with a business there remotely? (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48085522) |
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Date: September 13th, 2024 4:59 PM Author: multi-colored box office masturbator If you are an independent contractor and never set foot in the state, and if the benefit of the work you performed was for a business in California you owe CA income tax. It's another matter as to whether they actually filed the 1099. If it's a big outfit they probably did. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48085857) |
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Date: September 13th, 2024 5:01 PM Author: Heady costumed community account Wrong (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48085866) |
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Date: September 13th, 2024 6:00 PM Author: Cocky blue stock car lay Yeah agreed. Op is FUCT because it's cali. Even NY is much better (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48086121) |
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Date: September 14th, 2024 1:00 PM Author: infuriating yarmulke persian Will a hospital notify if they filed a 1099 form? Do they need my signature the same way they ask for my signature for w9? They would file that in April once a year? I don't think it's a good idea to call them and ask, that would encourage them to be "safe". I am aware that a lot of consultants don't pay california by doing llc, they claim if they have 1 contract in Cali and 1 contract in another state they can justify their business is not local to california. Certainly it's not any harder to audit them if the hospital reports their ein to tax board. But does it? (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48088318) |
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Date: September 17th, 2024 11:42 AM Author: slimy library athletic conference You would be sent a 1099 showing that they notified California (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48098867) |
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Date: September 14th, 2024 2:36 PM Author: slimy library athletic conference You may owe CA tax, but you also will get a credit for what you pay to other states. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48088552) |
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Date: September 14th, 2024 5:09 PM Author: mildly autistic erotic factory reset button pocket flask That’s insane (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48088887) |
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Date: September 13th, 2024 5:00 PM Author: Saffron appetizing french chef Congrats you just stepped into California virtually (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48085863) |
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Date: September 13th, 2024 5:01 PM Author: multi-colored box office masturbator You can check out any time you want, etc. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48085865) |
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Date: September 13th, 2024 5:55 PM Author: buff field How to dissolve California department of Tax and Fee Administration fastly |
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Date: September 15th, 2024 3:01 PM Author: thriller stain Franchise Tax Board* (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48091305) |
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Date: September 13th, 2024 6:03 PM Author: Cocky blue stock car lay Cali has been harassing the PE company i work for. We have no offices there but sometimes work with california residents.
Cali is the single most nitpicky tax department in the usa. Yes, that includes the IRS and NYC.
They will find out bro, and send you a letter
You could dispute the letter. But be prepared for a fun ride |
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Date: September 15th, 2024 3:09 PM Author: Stirring stage It’s the only government agency in the state that does its job effectively, odd case. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48091340) |
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Date: September 15th, 2024 3:10 PM Author: thriller stain ;) (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48091346) |
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Date: September 13th, 2024 6:07 PM Author: Mauve 180 Personal Credit Line Point Pay your taxes that’s a debt that’s owed who do you think you are? TSINAH? (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48086169) |
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Date: September 14th, 2024 1:26 PM Author: infuriating yarmulke persian Oldhlsman I just found new information why I'm not filing ttt Cali tax. The hospital has billing company in 50 states and it bills Medicare based on my physical location. So the nexus is outside of California. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48088362) |
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Date: September 14th, 2024 2:15 PM Author: multi-colored box office masturbator 180 (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48088490) |
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Date: September 14th, 2024 3:25 PM Author: infuriating yarmulke persian I'm not sure if I'm right. While the medical billing is done in Florida the company that writes me a 1099 check is a California company. So what is the nexus? I know when california hospitals hire corporate telemedicine those corp employees do not pay any state tax. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48088685) |
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Date: September 15th, 2024 12:45 PM Author: mildly autistic erotic factory reset button pocket flask Worst case scenario you get a letter. Drop the estimated taxes in an 18-month CD. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48090922) |
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Date: September 14th, 2024 2:19 PM Author: multi-colored box office masturbator Found a good article in Forbes about this situation: https://www.forbes.com/sites/robertwood/2022/07/07/california-is-taxing-nonresidents-who-never-once-visited-really/ (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48088499) |
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Date: September 17th, 2024 9:51 PM Author: ruby dashing sound barrier stage How is this not a DCC issue? (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48101781) |
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Date: September 14th, 2024 2:37 PM Author: exciting parlour windowlicker Pretty sure states get the W9 info from IRS, like it asks for addy and shit (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48088557) |
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Date: September 14th, 2024 3:22 PM Author: infuriating yarmulke persian Yeah I now have this confirmed. The only way to escape tax is to justify that the nexus is NOT in California. If california hospital pays my llc out of Florida and my llc has employees worldwide then the nexus is Florida. But if my llc only has a single contract with this California IA hospital then nexus is california? (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48088680) |
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Date: September 14th, 2024 7:10 PM Author: Racy old irish cottage "But if my llc only has a single contract with this California IA hospital then nexus is california?"
The computer decides |
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Date: September 15th, 2024 12:04 AM Author: exciting parlour windowlicker Determining the tax nexus for your Florida LLC in relation to its contract with a California hospital involves several factors. In general, nexus refers to a business connection or presence that requires a company to comply with the tax obligations of a specific state.
Nexus in Florida: If your LLC is based in Florida, employs people worldwide, and primarily conducts business outside of California, the nexus would generally be in Florida. This means your LLC is subject to Florida's tax laws and requirements.
Nexus in California: If the LLC has a significant connection to California, even if only through a single contract with a California hospital, California may assert that nexus exists. Several factors could lead to establishing a California nexus, such as:
Regularly doing business in California (even without a physical presence). A substantial portion of your revenue or services being tied to California clients. Employees, contractors, or agents working on behalf of your LLC in California. If the LLC's services for the California hospital are performed within California. If your LLC only has one contract with a California entity but performs work or has operations related to that contract within California, the nexus might be established in California, requiring compliance with California tax laws. This is especially true if the income is from activities conducted in California or the contract represents a significant portion of your LLC’s revenue.
The exact determination of nexus can vary based on specific factors like the volume of business, whether the services are performed in California, and the nature of the contract. You may want to consult a tax professional to confirm how California might view this arrangement and to ensure compliance with state tax laws. |
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Date: September 15th, 2024 2:34 AM Author: infuriating yarmulke persian I guess then I must file their tax just the same as if I worker for NY(ny doesn't care 1099 or w2). Now I got a new idea. If this is a small part of my overall income (I am mostly w2) can I apply expenses specifically to this 1099 job. I.e. if I pay 10k to an accountant or 20k to a personal assistant can I write it off just against the california job? And does it make any difference if I make llc or if I just do write off as a self-employed? I.e. I could buy things just to write it off. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48090221) |
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Date: September 15th, 2024 12:47 PM Author: exciting parlour windowlicker nigga when u file ur CA non resident form theres some way to deduct CA source expenses but no idea how the furk that wld work (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48090927) |
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Date: September 15th, 2024 2:52 PM Author: infuriating yarmulke persian So if I pay an accountant in ny or buy a computer in Florida for my consultant business I cannot deduct that expense from my California work? (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48091278) |
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Date: September 14th, 2024 11:50 PM Author: exciting parlour windowlicker i believe the rule is "california source" income, not "nexus" whatever the furk dat means (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48090003) |
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Date: September 15th, 2024 3:03 PM Author: thriller stain Nexus is for sales tax, source is for income tax. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48091314) |
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Date: September 15th, 2024 2:36 AM Author: pale alcoholic quadroon boor you NEED a chatgpt subscription so we can stop being inundated with these retarded questions (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48090225) |
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Date: September 15th, 2024 2:38 AM Author: infuriating yarmulke persian U are a faggot. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48090227) |
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Date: September 15th, 2024 3:07 PM Author: thriller stain ChatGPT is not very good with state income tax questions for some reason. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48091329) |
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Date: September 15th, 2024 2:51 PM Author: infuriating yarmulke persian Some explain to me benefits of scorp versus just being self-employed? If I have a w2 job where I paid ss tax on 160k then I only need to pay Medicare tax on any self-employed 1099 income. But if I incorporate I will be paying extra 6.5% ss tax as an employer. So the accountant would benefit by getting more work, while I actually pay more tax by incorporating. In fact if you have children/assistants u can write off 1099 income by paying them without incorporating (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48091273) |
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Date: September 15th, 2024 3:48 PM Author: twinkling house hissy fit The main benefit is that you can allocate part of your income as "salary" and another part as "dividends," and you only pay self employment tax on the salary portion of your income. It has to be a market rate salary for your line of work, though. You can't just pay yourself a salary of $1 and then report the rest as dividend income. Also, your risk of being audited is lower, and you may have better protection if you get sued. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48091454) |
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Date: September 15th, 2024 7:19 PM Author: infuriating yarmulke persian So if you work purely 1099 u could save 10% fica on the 50% of salary that u do as dividends. But if u work over 160k as a w2 then u only pay Medicare as a 1099 but pay full ssn+Medicare as a corp. Llc does not protect a doctor from getting sued. It's just a source for accountants to get easy $$ from drs (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48092257) |
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Date: September 17th, 2024 2:47 AM Author: twinkling house hissy fit My understanding is that you have the S corporation issue a W-2 to yourself. If you already maxed out Social Security on your other W-2, then you don't need to withhold anything for Social Security on your S corporation W-2. So you avoid paying Medicare tax on the portion of your salary that you pay as dividends.
And in my state, attorneys are required to incorporate as a PLLC, which does not protect you from malpractice liability. I would assume that this is the case in other states for doctors and other professionals. But you would need to figure out the rules in your state.
The final benefit of an S corporation is that sole proprietors get audited something 3-5 times more frequently than S corporations. I guess the IRS assumes that if you do the S corp paperwork correctly, you are less likely to be fraudulent. You can decide whether that's worth the hassle of setting an S corp. |
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Date: September 17th, 2024 1:25 PM Author: infuriating yarmulke persian But if you have scorp you are both employer+employee. Seems you still pay as "corporate employer" 6.2% ssn and Medicare employee+employer tax. As a sole proprietor I don't pay any ssn tax if I maxed on w2. No most states do not require incorporation, I'm not from California.
I'm not going to do corp+ plus tile quarterly reports just because accountant says it's "safer". It actually needs to be ben3ficial to me. |
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Date: September 17th, 2024 5:14 PM Author: twinkling house hissy fit I would check with an accountant. I would assume that you do not have to pay 6.2% FICA as an employer if you have already maxed out your SS on a W-2, but I'm not sure about the rules.
And you are definitely not required to incorporate. What I was saying is that in my state, if you do choose to incorporate as an attorney, you are required to incorporate as a PLLC, which does not protect you from professional malpractice suits. Apparently it would protect me if someone sued because they tripped and fell at my office (or any other liability that could result from my job other than professional malpractice), but that probably isn't useful if you are working remotely. |
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Date: September 17th, 2024 9:48 PM Author: infuriating yarmulke persian No I double checked u do pay employer 6.2% as scorp even if maxed out w2. But u don't as simple llc or selfemployed. My accountant doesn't know shit and tried to get me to pay double tax on roth conversion. I called him out on it. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48101775) |
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Date: September 18th, 2024 1:59 PM Author: twinkling house hissy fit That seems dumb, but I didn't write U.S. tax law. This is true even if you incorporate your LLC as an S corp? (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48104500) |
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Date: September 18th, 2024 9:34 PM Author: infuriating yarmulke persian Yes weird that people who have only w2 or only 1099 don't know about this basic thing. 6% of 150k and after deduction is negligible amount. But what's fucked up is accountants get doctors like me to open scorp and end up hooked on their fraud. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48106672) |
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Date: September 15th, 2024 3:07 PM Author: thriller stain The 1099 will go to the FTB through whatever payroll software they use. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48091333) |
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Date: September 15th, 2024 4:06 PM Author: Stirring stage Once I got a 1099 for about 20k in legal fees from a referral I made. Never claimed it on my tax return. Neither feds nor California pursued me for it. Your results may vary. (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48091492) |
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Date: September 15th, 2024 7:20 PM Author: infuriating yarmulke persian Yeah I'm pretty sure since they ask my w9 they send it to irs (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48092260) |
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Date: September 17th, 2024 11:44 AM Author: Racy old irish cottage The State of California will make your pager explode if you don't pay them, friend (http://www.autoadmit.com/thread.php?thread_id=5594169&forum_id=2#48098879) |