Taxes

[Orchard Ex]

I'd like to see where it says I can't add a line item for my taxes onto my invoice. I bet that I can add a line for anything that I want to. Fuel, materials, equipment wear and tear, Gatorade, boot allowance, chew, anything that I want can go on my invoice if I feel that the customer should pay for it. Now, does my customer want to see those things on an invoice? Heck no, it would just make them upset.
BTW, your employer is paying your Federal and State income tax. It gets withheld from your gross pay and forwarded to the Feds and State, so yeah, they are paying it as part of what they pay you. It's all part of the big picture.

 

[Cropduster]

I bet the first time you put IRS taxes as a line item on your invoice, your customer is gong to call IRS, and you will get a sweet review of your books. And no, the employer does not pay the IRS as part of your pay, they DEDUCT the taxes from your net pay.

 

[Orchard Ex]

I bet the first time you put IRS taxes as a line item on your invoice, your customer is gong to call IRS, and you will get a sweet review of your books. .

Why do you think that the IRS cares what the line item is named on your invoice as long as you pay the required income tax on what you earn? As long as your books are straight and they get their share of your net taxable earnings they shouldn't care. Now, if you are collecting sales tax as a line item and not turning it in to your state as tuney was saying, then you will be in trouble.

And no, the employer does not pay the IRS as part of your pay, they DEDUCT the taxes from your net pay.

Sure they are paying the tax, you aren't looking at the bigger picture. For example: Let's say you have a kid and you give your kid an allowance. Your kid goes to WalMart and buys a new CD. Who really paid for that CD? It was your customers employer, that's who. (Actually it's your customers employer's customer's employer... man it could go on forever huh...) It doesn't matter if you had your customer set up a separate direct deposit split account (i.e. line item) that was earmarked for your kids CD or not, but that's where the money is coming from.
Anyway, where is the list of acceptable invoice line items on the IRS site?

 

[Cropduster]

I don't believe IRS has such a list. What I am saying is, if you put that as a line item on your invoice, your customer is likely going to call IRS. In turn, some government employee is going to say this is strange, what else could he be doing. They may find nothing wrong with your books, but I bet they would think it is worth looking into. It would be like going to Walmart, and your register slip saying CD 49 cents. Lights 12 cents, Shelf stocker 1.00, Wear and Tear on Parking Lot, 19 cents, etc etc. Not looking for an argument dude, just saying that breaking your IRS liability out on your invoice might not be the best way to go. Otherwise more people would do it. Plus, you can't really predict what your liability will be until you add in all of your deductions, etc. If you were to get a refund, would you want to go back to the books and figure out what percentage went to customer X?