Good Day or Bad...TWC Audit

[CobyPhoto]

We will know shortly, as I am sitting here awaiting on the findings of a TWC Audit of my books. Such is the life of being in business for yourself. Even if you are small.



CJ

[brad]

Sorry, man... are they just going through your books as they are, or are they looking at paper trails, too?

[boomerd35]

I'd say good luck- but you won't need it. I'm sure you'll come out squeaky clean. What I hate about audits is when the auditor asseses more than you know is due, and you basically have to redo the entire audit yourself to prove the facts. Hopefully this won't happen to you.

[LoungeLizard]

Dude, you've hit the big time!

Seriously, you'll do fine as I'm sure everything is legit.

[CobyPhoto]

Whew...

Glad that is done. She was actually very nice, professional, but wanted an explnation about EVERYTHING!

Learned a few things about hiring second shooters and assistants! Auditor told me the last employee I let go, complained that I was paying people off the books, etc. but it was because I had enough documentation to refute her unemployement claim.

Once I get time, I will post a few things about contract labor, 1099's and assistants that is very good to know and can get you in a lot of trouble!

A good example of which, was an employeer owned only $5.24 in SUT that wasn't filed. By the time the fine and penalties were done...she owed a whopping $278.95 to the TWC.

Damn, talk about a costly error!

CJ

[CobyPhoto]

Originally Posted by brad

Sorry, man... are they just going through your books as they are, or are they looking at paper trails, too?

They hit everything...ledger, to check stubs, time cards, filing paperwork, DBA's Tax certificate, etc. If it was required, you better have it.

At least she was professional about it and I even think I gained a client out of the deal!

CJ

[boomerd35]

Originally Posted by CobyPhoto

At least she was professional about it and I even think I gained a client out of the deal!

CJ

See, audits don't COST money, they MAKE money

Glad to hear it went okay.

[Paulo]

Originally Posted by CobyPhoto

They hit everything...ledger, to check stubs, time cards, filing paperwork, DBA's Tax certificate, etc. If it was required, you better have it.

At least she was professional about it and I even think I gained a client out of the deal!

CJ

My hero...A true pro! Finds clients even at an audit...

[LoungeLizard]

Can't wait to hear what you have to say - specially about the 1099s. I know you don't have to do them if yearly total is under $600 - but I like to. Keeps it all legit for everyone.

[wondershots]

Twc?

[LoungeLizard]

Texas Workforce Commission

[wondershots]

Originally Posted by LoungeLizard

Texas Workforce Commission

Thanks. Now what would trigger an audit from them? Could only having a second shooter from time to time get their interest?

[Steelsun]

Wait to an audit comes for sales tax! They are worse than the IRS.
One at a company I was at for awhile ended up costing over $10K for less than a few hundred dollars of uncharged sales tax.
That's when we learned - if you pass on an expense to a client - you have to tax it - even if the expense (as were the cases in this instance) were reimbursement for Hotel stays. So if you stay in a $100 hotel, you get hit with a $15-20 tax already. Then you must tax all that 8.25% when passing the expense to the client. Talk about double dipping.

[CobyPhoto]

Sorry, lost internet at the studio today. They are doing some digging in the alley and they cut the damn cable. THen I had to be at the Guild meeting tonight.

Jesus, remind me if I forget to post about 1099's and such in the near future. I am too tired tonight.

CJ

[iahdf]

Originally Posted by wondershots

Twc?

Texas Work Commission