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13244Re: [tips_and_tricks] accountant situation

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  • brokenwrench
    Jan 5, 2007
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      i worked for a company as a machinist in 1994 that  had the same problem, they found a loop hole.
      they created a temp empolyee employment agency llc which was soley held by the partent company after they got the structuring done they fired all the factory workers the temp llc hired them the next hour and signed them to a contract and leased them back to the parent company. the workers kept the same benifits aand did not lose one days pay in the process. but the fees and insurence costs went from 93k/month to 9k / month for the parent company. the only thing they had to do was post a sign under new management

      rocketmankennyknappcom <rocketman@...> wrote:
      I would like input from group members regarding this situation.

      We have a C corp. Under this C corporation we have a seasonal
      business in Colorado. For the last several years, the people who work
      with us did not want us to take taxes out. We did not send them
      1099s. Our accountant put the money we paid them in an "outside
      services" category. Now, our accountant is saying we must start
      taking taxes out. If not income taxes, then FICA and unemployment
      taxes etc.

      I have some good ideas on how to deal with the accountant, but I would
      like to hear from members for their input. I think the accountant is
      more worried about raising flags with the State than the Feds. We
      don't want to end up going to court to defend not withholding taxes
      from people who didn't want us to withhold taxes from them! We
      believe these people are workers, not "employees."

      Kenny


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