Agent and taxes

[Sam]

I agree, someone could give the same advice about insurance....don't go to that guy, he isn't busy 24/7 so he must not be any good. It is true that a lot of CPA's are very busy now, and you need to make apointments, but there are many quality accountants and tax preparers who are very good at what they do, and can squeeze you in this evening.

 

[Guest]

Send4linda

To answer your question:

So you're saying not to have me do your taxes cause I can sit down with you tomorrow evening and do them. None of my customers have to make appointments weeks in advance. I have a small tax preparer business and I happen to specialize in business taxes.

Do not go to someone that can fit you right in anytime you want. Make sure you have to make an appointment well in advance.

What happened for you to give that advice?

Ever need a doctor, lawyer, or accountant (I know you stated you were one). Let me assure you the most distinguished and accomplished in their field are booked long in advance.

Try getting in to see a top physician in the metropolitan area in which you live or the state you are in. Unless it is a dire emergency, which can be confirmed by a referring physician, it will take you weeks or months to see him.

Need a lawyer. The public defender always has time and can hit the ground running. The attorney that commands a six figure retainer - - yes your honor, we will be ready for trial perhaps next year.

An accountant. I too am an accountant as is my spouse. With regards to the profession I speak from first-hand experience.

 

[Guest]

Per Melmunch3

I agree, someone could give the same advice about insurance....don't go to that guy, he isn't busy 24/7 so he must not be any good. It is true that a lot of CPA's are very busy now, and you need to make apointments, but there are many quality accountants and tax preparers who are very good at what they do, and can squeeze you in this evening.

I. I agree with you Melmunch3. Note your words "can squeeze you in." Implication of the word squeeze is that he is plenty busy otherwise.

Melmunch. Not knocking anyone.

I am sure there are top notch professionals that work a leisurly pace and total incompetents that are workaholics and always busy. BUT if a person did not have a referral to a good accountant, did not know the questions to ask, and was looking for any clue as to competency, then if one had a choice between:

1. yes come in anytime, and
2. I can see you in six weeks.

Ever go to a premier physician or specialist or know somone that did? How long did it take that person to get an appointment.

II. I never heard of any insurance professional being booked weeks in advance. Have heard of plenty of doctors, lawyers , and accountants being booked solid. Let's face it the nature of an agents dealings with an individual client takes what, at most 8 hours? A few hours more if the prospect is a PITA as per the other thread on multiple apps.

 

[Send4linda]

Anyway, it sounded like some of you may have questions. If you trust a not so busy part time tax preparer and a full time accountant, I'll answer what I know.

 

[Guest]

Anyway, it sounded like some of you may have questions. If you trust a not so busy part time tax preparer and a full time accountant, I'll answer what I know.

With regard to CAPTIVE agents:

I sometimes wonder if they really ARE independent contractors. When you consider the kinds of controls that are stipulated in the appointment contracts they sign, I think it makes them look more like employees than independents.

I guess this has been tested in court, but I do know that usually it is the CONTRACTOR who has the client (in this case the carrier) sign the contract, not the other way around.

I've long thought that both RE Agents and insurance agents are held to be "independent contractors' as a way for carriers to not have to pay benefits, overtime, etc.

I just signed a (non-captive) contract with Colonial Life that sure as hell looked like I was an employee and not a contractor, but IANAL (but once did go to law school for about ten minutes) so I don't know the current law or if the 20 'safe harbor' IRS questions are still in effect.

Al
http://www.insurancesolutions123.com

 

[Sam]

I don't think that the comparison between medical needs and tax needs is a fair one. When someone is sick, they need excellent medical care. Who they are and what they do, is irrelevent. They need the same care wheather they are a plumber or a congressman.

Insurance agents, especially ones who don't have any agents under them, do NOT need the same level of care that some other people might. True, there are deductions that you want them to think of, that someone who only took a course won't think to get them, but they don't need the best CPA that exists.

 

[Mike_Golden1]

Here's what I've been doing for a long time, in a variety of businesses, and it has never failed me. I use an online Tax Estimator to show me how much my taxes are going to be ahead of time and then I know how much of my income needs to be set aside or paid on a quarterly basis.

There are a bunch of free tools online, here's a link to a good one:

http://www.hrblock.com/taxes/tax_calculators/

I've already done this for the next two years (based on my business plan, which includes a commission cash flow projection) and have a % of my gross calculated for tax payments. If I am smart I will open a separate bank account so that I can deposit these amount monthly and pay the government quarterly.

All you really need to do is estimate your annual income (do it with a low, medium, and high projection if you like), plug it into the Tax Estimator, enter in your deductions (from your prior year tax return if you like) and you will know exactly where you stand within a few %.

 

[Guest]

Melmunch3

I retract my suggestion.

I did not intend for it to be an acid test and the sole determining factor to be used. It was just to be added to the checklist.

If you had two choices and knew nothing about the service, quality, reputation of an establishment, let's say a restaurant in this case:

You are from out of town on vacation. One restaurant has two or three cars in their parking lot. Across the street, the parking lot is jammed packed. Which one would you choose knowing nothing else but that the parking lot was jammed packed?

You stated

Insurance agents, especially ones who don't have any agents under them, do NOT need the same level of care that some other people might. True, there are deductions that you want them to think of, that someone who only took a course won't think to get them, but they don't need the best CPA that exists.

I see your point. We may not need the best. Certainly we need competent.

My suggestion was just one way to possibly root out inexperienced or poor performers. Would my suggestion root out all poor performers? No. Would my suggestion perhaps erroneously eliminate some competent professionals? Sure.

It was just to be added to the list started by the other poster which suggested passing on someone who hesitates if you ask them whether they do business returns.

 

[Crabcake Johnny]

Anyway, it sounded like some of you may have questions. If you trust a not so busy part time tax preparer and a full time accountant, I'll answer what I know.

With regard to CAPTIVE agents:

I sometimes wonder if they really ARE independent contractors. When you consider the kinds of controls that are stipulated in the appointment contracts they sign, I think it makes them look more like employees than independents.

I guess this has been tested in court, but I do know that usually it is the CONTRACTOR who has the client (in this case the carrier) sign the contract, not the other way around.

I've long thought that both RE Agents and insurance agents are held to be "independent contractors' as a way for carriers to not have to pay benefits, overtime, etc.

I just signed a (non-captive) contract with Colonial Life that sure as hell looked like I was an employee and not a contractor, but IANAL (but once did go to law school for about ten minutes) so I don't know the current law or if the 20 'safe harbor' IRS questions are still in effect.

Al
http://www.insurancesolutions123.com

As long as they're not controlling your hours or making meetings or other activities mandatory they're in pretty safe territory. There are indeed companies that flat out violate independent contractor rules. Take a mortgage company where as a broker you're required to come in every day from 9am to 6pm yet are on 100% commission. That's not allowed. This is why in the car industry, even though it's 100% commission, they still W-2 you with benefits and a draw.

Assurant can have me sign all the contracts they want. They don't control my hours or any aspect of my day. I still have to follow their rules just like my telemarketer has to follow my rules.

You can hire an independent contractor and control what's called "work output." That means I can hire telemarketer, put her on $15 an hour, and say "listen, I don't care when you make the calls but by the end of the week you have to give me 10 hours and at least 20 leads." That's allowed. What I can't do is require her to come over my house from 10am to 2pm every day. That's not allowed.

 

[Steve]

How about software for financial/tax record keeping? I was thinking about purchasing Quicken for Small Businesses. I've used Quicken Pro for Home in the past, and link it in with Turbo-Tax. Anybody using the version for small business?

Anybody using a different program that they'd care to recommend for insurance business financial records?