Some January Tax Tips Courtesy of Lordis Gawzner, A2T Consulting

Updated: Feb 4, 2020

Lordis Gawzner founded A2T Consulting, Inc. after having over 20 years of experience in both corporate and consulting environments. With her expertise in accounting, taxation, financial statement preparation/reporting, financial analysis, payroll, and collections, as well as other aspects of finance and accounting, she has worked with firms of every size in a variety of industries.

While consulting with several clients of hers, Lordis saw a need to integrate tax planning with overall accounting and financial work. Too often do smaller and medium-sized companies wait to consult their tax professional until after the fiscal year, rather than making intelligent decisions considering tax implications in real-time! After years of witnessing the same situations and tax surprises, Lordis decided to take action. In 2007, she earned her Enrolled Agent* credentials and founded A2T shortly thereafter. In early 2016, A2T moved and established its base here in Honolulu.

The following are a few tips and clarifications Lordis has provided:

1. How to determine whether or not your worker is an Employee or an Independent Contractor: One of the biggest tax issues for companies is determining whether workers are employees or independent contractors. If a worker is an employee, then the employer is responsible for withholding income tax and the employee’s portion of Social Security and Medicare tax from amounts paid to the worker.  The employer is also responsible for paying over to the IRS the employer’s portion of Social Security and Medicare tax, as well as paying the Federal Unemployment Tax.  In contrast, the business is not responsible for any payroll taxes for independent contractors.  Many companies believe that they can choose whether to treat any given worker as an employee or independent contractor.  However, there are laws that determine whether the worker is an employee or an independent contractor.  An employee is an individual who performs services for you and who is subject to your control regarding what will be done and how it will be done.  If the employer retains the right to direct and control the means and details of the work, then the worker is an employee.  In contrast, an independent contractor is an individual who performs services for you, but you control only the result of the work, not the means and methods of accomplishing the result.

2. S-Corporation Stock Basis:

A shareholder’s stock basis begins with the cost of starting your business and is increased for any additional capital contributed by the shareholder during the year. The adjusted basis of an S-corporation's yearly stock fluctuates based on the corporation’s pass-through items.

3. How are S-Corporation Shareholders taxed? Shareholders of an S-corporation are taxed on their allocated share of the business’s profits, regardless of whether or not those profits were actually distributed to them.

A2T (Accounting to Taxes Solutions) Consulting offers many services, including but not limited to:

- Accounting/bookkeeping (QuickBooks ProAdvisor®) services

- CFO/Controller consulting

- International taxes

- Domestic tax preparation

- Representation and audits for both corporate and private clients

For more information or inquiries about A2T and their services, please feel free to contact Lordis at:

808.927.9282 (Office)

949.395.2065 (Cell) (Email)

*As an Enrolled Agent (EA) licensed by the IRS, Lordis must annually take tax educational credits and is, therefore, able to offer well-informed tax and accounting advice. Lordis is also a graduate of the National Tax Practice Institute, specializing in Representation and Tax Resolution.

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