Having fun being a contractor? Forms 940 and 941, W2s for the first time.

[bullheimer]

OMG!!!! what b.s.! how was i spozed to know i have to match workers SS and it would cost me so much? Thank god the Irs has great help on the phone and that social security has W2s and 3's online to fill out. Now if i could only pay them the entire amount of the tax i owe. i just sent hundreds to the State for unenjoyment and LnI Insurance. work sucks. and it seems like all my prospective customers lately expect me to install equipment that THEY BOUGHT! W R O N G-O!!!!

AND now my bestest helper, who is the greatest, is looking for full time employment as ANYTHING because all three of the electrical contractors he works for, between ALL OF US, CAN'T keep him busy. Not one day for him in the last three weeks now. Man this economy just keeps getting worse, at least around here in nunya. And all three of us are owner/worker bees with no other employees.

I yelled at my sister in law tonight, (on the phone) when she told me this friend of hers with no money wants me to install a transfer switch and gen outlet, he bought, for $150, and he lives 25 miles away. He can do it himself for all i care and i don't care.

Oh may i mention that the State threatened me if i didn't poop $1900 yesterday by close of biz. I had to borrow a grand from a friend, who i would not be here without. I had a bowel movement in the nick of time

 

[ActionDave]

Well at least you survived Twenty 11.

 

[Sierrasparky]

whoosh,,, Take a deap breath man.
I know it's bad here too.
Contractors are bidding in rediculous mode. One thing I know is that you need to charge great enough to pay the taxes otherwise don't bother it will come back on you.

 

[ramsy]

OMG!!!! what b.s.! how was i spozed to know i have to match workers SS and it would cost me so much? ..Oh may i mention that the State threatened me if i didn't poop $1900 yesterday by close of biz. I had to borrow a grand from a friend, who i would not be here without. I had a bowel movement in the nick of time

My State is busting valid State licenses just as hard for employee-paperwork issues as the unlicensed guys.

Contractors have different responses to enforcement actions.

Entrenchment:
Some consider regulatory enforcement cost an investment that justifies keeping legit help, more advertising, traveling longer distances, cross training into another license, or employing their license as an RMO.

Employment:
Some moonlight as a journeyman and keep both cards. Others go to work for big box stores, or suppliers who allow side work when materials are purchased at the store.

Wild West Fold Up:
Deactivating one or more licenses, and doing unlicensed work is on the rise. Inactive licenses busted by stings in my state are approaching 25% of enforcement-action citations.

Citations include: exceeding the "unlicensed minor work exception", advertising with no "unlicensed" declaration, illegal mechanic liens, lack of permits, no insurances for helpers, soliciting excessive down payment, soliciting work for another license without being a registered salesman for that license, and the occasional suspended license, fraudster arrest warrant, sex offender, etc..

 

[ritelec]

what b.s.! Man this economy just keeps getting worse,

Not according to your buddy Obama.

Just kidding...I feel your pain.

I yelled at my sister in law tonight, (on the phone) when she told me this friend of hers with no money wants me to install a transfer switch and gen outlet, he bought, for $150, and he lives 25 miles away. He can do it himself for all i care and i don't care.

Yep.............what do they say about working for friends and relatives? Just learned the hard way, yet again. My brother inlaw just beat me for 3 beans.

Well at least you survived Twenty 11.

Harold Camping??? Yes.......and it was much fun..........not. But 2012's bringing on Mayan doomsday.................

whoosh,,, Take a deap breath man.
I know it's bad here too.
Contractors are bidding in rediculous mode. One thing I know is that you need to charge great enough to pay the taxes otherwise don't bother it will come back on you.

Had an ok year couple years back................ interesting how I busted a nut, only to write out a very large check for uncle sambow.
The year after wasn't good at all, spinning wheels mainly trying to get work................sucking wind but was able to get threw...........this time uncle sambow wrote me a check (wasn't much....beer money.....but I don't drink anymore).

Only in America.

This past year was much of the same................

2012??? Mayan Doomsday??? Just make it quick and painless.

Good Luck and Hang in there all !!!

 

[ptonsparky]

Paying those taxes are a PIA, but do it. On time. Same with insurance. Do the estimateds and charge enough to pay for them. SS, plus your match, etc, you withold from an employee is not your money. Never was. Look at it that way and don't touch it for any reason.

I had a guy sting me for $17000 and another for $6000 in the same year. Best learning experience I've had. I doubled my rates.

 

[stevenje]

Paying those taxes are a PIA, but do it. On time.

Get yourself another wall calendar and put it up on the wall. This will be your TAX calendar. Write in every date that a form/payment is due. It works for me.

 

[PEDRO ESCOVILLA]

i'm fixin' to buy some traps so if the defacation really hits the rotary oscillators i can still eat and maybe make a little $ or trade for what i need. hehehe:happyyes:

 

[kwired]

Paying those taxes are a PIA, but do it. On time. Same with insurance. Do the estimateds and charge enough to pay for them. SS, plus your match, etc, you withold from an employee is not your money. Never was. Look at it that way and don't touch it for any reason.

I had a guy sting me for $17000 and another for $6000 in the same year. Best learning experience I've had. I doubled my rates.

Right. Only money that is yours is your portion of SS contribution, all other payroll taxes were not yours to start with, you just hold on to them until you make your payment. It is all payroll expense and is subtracted from gross revenue before taxable income is determined for your income tax purposes.

Employees are expensive, you need to charge enough to cover the expense of having them plus some more to make a profit, otherwise you are going to end up having to get rid of them because you can't afford them. You also need to remember there will be times when they will be working for you only and not doing something that is directly associated with a project. Enough needs included in your service rates to cover that also.

If this is too overwhelming get an accountant, they can just help with payroll and taxes, or they can get even more involved in your daily operations. Mine is usually only depended on for year end payroll items and income taxes. I can stop, or call with questions at any time. For a couple two or three hundred dollars a year they usually save me much more than that in income taxes alone vs if I tried to do them myself. Plus if they do it wrong they are also liable. If I do something wrong when doing it myself and am penalized it is my fault and I have to pay penalty no matter what.

 

[bullheimer]

i dont blame obama, i blame osama

i dont blame obama, i blame osama

first off i think today i will go open a couple of savings accounts i dont have. one for my state sales tax (25% interest i owe, they are as bad as credit card companies). and one for well, i dont have anymore employees, but i still have to pay my taxes quarterly now anyway since i'm an LLC. or at least i should. so an account for that too.

where is all this relief for the small business man spozed to happen. oh yeah, as soon as it trickles down. no, i still am blaming Bush/Cheney for this, lets call a spade a spade. two years couldnt fix their mess, neither will two decades. i am with john stewart again on this, the ONLY time the whole entire congress stood up was when he said we would go to war with Iran! are u kidding me? what are these clowns all thinking? but i wont go into my political tirade here. some other time.

but would like to mention that on my remodel job that the general asked me how much to add an outlet for a tv, after it had passed rough-in. i told him $100, THE CUSTOMER SAID OK! BUT HE DID NOT TELL ME TO DO IT. when i went back to trim out, he had added it himself!!!! not only did the dummas use 14g wire on my 20A ckt!!!but when i pulled the wires out of the j box he fed it from, his hot wire fell out of the wire nut. i wonder if he knows what he did was illegal or not? this is what i have to work with:happysad:

i did not install an outlet in his box for the outlet. i told him that was all on him. i should turn him in. butt-nugget!

 

[Joethemechanic]

where is all this relief for the small business man spozed to happen

Dude, seriously, it ain't going to happen for you. When they are talking about breaks for small business. They aren't talking about you with your 2 or 3 guys. They ain't talking about me either. And they aint talking about the guy down the street with 10 employees

A small business, also called mom and pop store by some in the United States, is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations,partnerships, or sole proprietorships. The legal definition of "small" varies by country and by industry, ranging from fewer than 15 employees under the Australian Fair Work Act 2009, 50 employees in the European Union,[2] and fewer than 500 employees to qualify for many U.S. Small Business Administration programs.

Me and you are just small potatoes little gutter trash to them.

They help out a couple of their buddies with a 450 employee law firm, and then have a couple of drinks talking about how great they are for helping out the "little man"


You and I are such an insignificant piece of trash to then, that if you were on fire, and they were walking past, they wouldn't stop to relieve themselves on you.

 

[kwired]

There are loans, grants, etc. for small businesses, you got to go out there and find them. You will not always be accepted the first time. As far as payroll and sales taxes, they are the same for the big business as they are for the small business, the bigger business just are handling larger numbers normally but the rules are the same.

 

[Joethemechanic]

Yeah but when you are a one man show, or maybe have a couple of Oompa Loompas, there is just no time to spend looking for and applying for small business help. When you're pulling 6 twelve hour shifts in the field, and doing your book keeping on Sunday. And trying to keep up with trips to replenish your stock, and maintaining your tools and equipment,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Chasing after your money,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Dealing with insurance and bonding issues,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,


Those pie in the sky, maybe I'll get some government help kinda things fall through the cracks

 

[readydave8]

Well at least you survived Twenty 11.

Not necessarily, these costs are from work done last year?

 

[readydave8]

I know its a small consolation and maybe the wrong time for me to mention it, if so sorry, but:

Don't forget that your competition has the same obstacles to surmount, the ones that learn how to overcome the problems you list can become wildly sucessful. If running an electrical contracting business was easy it wouldn't pay much. And the one's that don't charge enough, like the $25/hr in another thread, won't be competing with you long.

 

[kwired]

Yeah but when you are a one man show, or maybe have a couple of Oompa Loompas, there is just no time to spend looking for and applying for small business help. When you're pulling 6 twelve hour shifts in the field, and doing your book keeping on Sunday. And trying to keep up with trips to replenish your stock, and maintaining your tools and equipment,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Chasing after your money,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Dealing with insurance and bonding issues,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,


Those pie in the sky, maybe I'll get some government help kinda things fall through the cracks

If you are that busy you are probably not having that much trouble with finances other than maybe finding time to take care of finances. You also need to find more help if you can't keep up. You can work hard at times but to continuously do so is not good for you. The stress of it all can be real hard on you. Add to that other problems - friends or family get frustrated with you because you don't have any time for them, you maybe eat a lot of fast food because you think you don't have time for anything else, some people turn to alcohol - maybe not while working, but still turn to that to escape their problems instead of doing things they should be doing with friends or family when not working.

 

[Joethemechanic]

If you are that busy you are probably not having that much trouble with finances other than maybe finding time to take care of finances. You also need to find more help if you can't keep up. You can work hard at times but to continuously do so is not good for you. The stress of it all can be real hard on you. Add to that other problems - friends or family get frustrated with you because you don't have any time for them, you maybe eat a lot of fast food because you think you don't have time for anything else, some people turn to alcohol - maybe not while working, but still turn to that to escape their problems instead of doing things they should be doing with friends or family when not working.

Yeah been through all those things. Never can find help that can work unsupervised. Never can find a decent book keeper even. Caring for my dying mother, can't get health aids that are even bright enough to understand that the catheter tube has to run downhill. Aids call out sick if their kid sneezes

Paying my business overhead out of my pocket, customers screaming because I can't come out at a moment's notice now, losing more money than most people make,,,,,,,,,,,,,,,,,,,,,

Thank god I don't drink or eat fast food, if I did I'd probably be dead.

 

[ritelec]

and doing your book keeping on Sunday

Working on the Lords day.............

Stopped doing that a year and a half ago.

Seriously, one of the best things I ever did.




Wow....did I just say that.

 

[kwired]

Working on the Lords day.............

Stopped doing that a year and a half ago.

Seriously, one of the best things I ever did.



Wow....did I just say that.

I wont say I never work on weekends or holidays or late hours during the week, but I decided a while ago it is not worth doing so on regular basis. I will take a call if someone has no power or something critical, even sometimes planned work because that is only time customer can have something shut down, but I don't make it something that happens all the time anymore.

Even if you really love doing your work you still need to take a break. Go golfing, fishing, take your family somewhere, go to your kids school events - no matter how unimportant they seem to you - it means a lot to your kid.

 

[MarkyMarkNC]

I do my payroll through Quickbooks, and it sends me reminders ten days or so before any tax is due, and then alerts me the day before and the day they are due if I haven't paid them yet.