what a "taxing" subject...
Trubie Tax Time Page Guidelines
PLEASE NOTE- This is a page set up to help answer questions you may have. This does not substitute you consulting with your accountant, but is intended to be a support group to assist you, and give you the information you may be seeking before you decide to consult an accountant to file taxes for you. We can not tell you what to do, nor should we be held responsible for any decisions that you make for your business. Please initial on this post that you understand and agree to these terms.
O2 POLICY & PROCEDURES on Income Tax
The Policy and Procedures states:
5.1 Income Taxes
Each Independent† Designer is responsible for paying local, state/provincial and federal taxes on any income generated as an Independent† Designer. Unfortunately, we cannot provide an Independent† Designer with any personal tax advice. Independent† Designers should consult their own tax accountant, tax attorney or other tax professional. If an Independent† Designer’s Origami Owl business is tax-exempt, the federal Tax Identification Number must be provided to Origami Owl. Every year, Origami Owl will provide an IRS Form 1099 MISC (Non-employee
Compensation) earnings statement to each U.S. resident who: 1) had earnings of more than $600 in the previous calendar year; or 2) made purchases during the previous calendar year in excess of $5,000.
O2 FAQ's- Please read these! It covers alot of the questions you probably have!!
What is a Form 1099-Misc (1099)?
A Form 1099 reports self-employment or an independent contractor’s earnings, interest and dividends to the Internal Revenue Service (IRS), and your state government, if required. O2 will send a copy of your 1099 to both you and the government, and retain one copy for our records. For additional information concerning the Form 1099, consult your tax professional or visit the Internal Revenue Service’s websitewww.irs.gov.
Will every Designer receive a 1099?
Only Designers who earned $600 or more in commission payments during the 2013 calendar year will receive a 1099 form. If a Designer earned at least $600 in commission payments AND purchased $5000 or more of O2 products at wholesale prices, Box 9 on the 1099 will be checked.
The total dollar amount of products that were purchased at wholesale prices will not appear on the 1099 form. You are responsible for determining that total – which can be done though the Back Office, and then reporting it to the IRS.
Designers who do not receive a 1099 from O2 are still required to report his or her earnings to the IRS and his or her state government, and should consult a tax professional for assistance.
When will I receive my 1099 form?
O2 will deliver all 1099 forms to the U.S. Postal Service on or before January 31, 2014. Designers can expect to receive their 1099 forms shortly thereafter.
I converted my account from a sole proprietorship to a Limited Liability Corporation (LLC) during 2013; will my 1099 be associated with my social security number (SS#) or my Employee Identification Number (EIN)?
Your 1099 form will be issued under EITHER your personal name and SS#, OR your business name and EIN#.
In the Back Office, your Designer account will still be associated with your personal name and SS#. We are in the process of updating accounts, and expect name changes to be completed in the near future. You will be alerted when that change has occurred. Once that change occurs, you will be able to access your account using either your personal name or business name.
Will my Hoot Loot be included in my 1099 form?
Unredeemed Hoot Loot will not be included on your 1099.
Can I access my commission history using the new system?
Yes, Designers can access his or her commission history through the Back Office.
· Log into the BACK OFFICE
· Under REPORTING, select COMMISSION SUMMARY from the drop-down menu
· On your COMMISSION SUMMARY page, you will see three fields, MONTH, YEAR, andSELECT PERIOD. Select the month and year from the drop-down menus. The default SELECT PERIOD is the entire month that you selected. The drop-down menu under SELECT PERIOD breaks months into weeks, which you can select individually, if desired. Once you have selected the MONTH, YEAR, PERIOD you would like your COMMISSION SUMMARY to include, select GENERATE REPORT. Your commission summary will appear below in a table. Your COMMISSION SUMMARY is at the bottom of the table.
· You will not be able to generate one commission summary report for the entire year. To determine your commissions for the entire year, you will need to generate a commission summary report for each month individually, then add them together.
How do I access and track my wholesale year-to-date (YTD) purchases? Box 9 on my 1099 is checked, but doesn’t include an actual number.
You can access your order summary through the Back Office, allowing you to calculate your YTD purchases.
· Log into the BACK OFFICE.
· On the main page, under the heading ORDER SUMMARY, select VIEW MY ORDERS.
· Orders will appear individually, and can be filtered into two groups – orders submitted within the last 60 days, or orders that were submitted more than 60 days ago. Orders can also be arranged chronologically by date.
· To determine YTD purchases, you will need to add your orders together individually.
I cannot find my personal volume from January 1, 2013 through November 1, 2013 in the Back Office. Why not? Is there an alternate method I can use to find that information?
You cannot access your personal volume from January 1, 2013 through October 31, 2013 because of a system upgrade that occurred at the beginning of November. The information that existed prior to that upgrade was not transferred to the upgraded system.
Designers who need his or her personal volume through October 31 can make a request by contacting Designer Care via the Contact Form. Requests cannot be fulfilled over the telephone. Designers will be contacted when his or her request has been completed.
I am just as confused as you.
Sending positive energy and love,