Tax Time

[SGT]

How do you guys handle the networks and taxes?

[GlassStarz]

the will send you a 1099 if you earned over $600 and are registered as an individual

[Bois]

Another good reason for not using networks

[splitpit]

I guess I don't understand what the connection between the networks and my taxes are? Taxabale income is taxable income. I don't handle anything different in regard to the networks. I operate as a corporation.

[SGT]

I was hoping for those that are under agreemnt with the networks, would expand on there state tax situation and how it applies to networks in there state. More specifically,

1. Is your state considered tax exempt with some or all of the networks your provide service for?

2. If not, do you include tax on your EDI invoices on top of the agreed repair rate or do you just bill at agreement rates and pay your state sales tax from that?

3. Do you know what your state requires tax wise and how each network interacts with your state tax wise?

For me it is not the same depending on the network. It varies from, tax exempt all the time, never tax exempt to sometimes tax exempt depending on the insured which would be indicated on the dispatch paperwork.

[SGT]

Crickets................

[autocosmetics]

We are required to pay sales tax on all repair work, so when we submit a bill to the networks we charge for the repair plus tax. When I first signed up with the networks they said that if our state required tax on repairs they would pay the total of their agreed repair rate plus tax.

[zachb]

I do mine the same way except for with Harmon this is quoted their work dispatch fax,"Please note, this transaction is a sale for resale. Please do not include sales tax on your invoice."

[PennavCorp]

hello everyone,im a newby to this forum but not to the biz,i seen someone said that that the company will 1099 you at the end of the year.we happen to be a corporation with entities how would they tax us?they cant 1099 me me personaly cuz i dont do biz under my name.can anyone help?

[Bois]

The insurance companies, or other customers (i.e.,dealerships), will have you complete a W-9. This form is for corporations and partnerships as well as for individuals. There's a box for checking off what type of business you're operating and a place to write in your TIN or S.S. You will receive a 1099 in the name of your corporation (if that's how you're organized).