Disregarded entities are always lifted up as the exception to the rule.

Find out what "disregarded entities" really are and why it is important for employers and AP to know about them.

This special program is designed for those with payroll or accounts payable responsibilities, and is devoted to understanding what disregarded entities are and how their differences will change the way we normally handle payroll as well as accounts payable processes.

We will look at the responsibilities of employers who are disregarded for federal tax purposes as single owned LLCs or subsidiaries of Subchapter S corporations under the new regulations and compare the new requirements to responsibilities for accounts payable processes for the same entity. Special rules require different treatment when disregarded entities are payers and different treatment when they are payees, so we will also look at the rules for disregarded payees and answer such questions as who provides the W-9 to AP for a disregarded entity. Even international considerations are lifted up when business involves a disregarded entity through the check-the-box regulations and special documentation is required. Find out what check-the-box means and how it will affect your operations. This program will also consider State payroll applications when involving a disregarded entity. Some states agree with the new IRS regulations and some states are still unclear on who should be considered the employer. Find out which states still pose concerns and what to do about it.

Learning Objectives: This session will give you what you need to know when you are making payroll through a disregarded entity and tips specific to managing these functions. It will also cover the necessary information to safely manage AP functions through a disregarded entity as well as what to do if you make an AP payment to a disregarded entity. Join noted payroll consultant Jerri LS Langer, with Cokala (Co-KAY-La) Tax Reporting Solutions, as she covers disregarded entities. This session will:

• Cover the new federal regulations for employers operating payrolls through disregarded entities.
• Look at the state treatment of disregarded entities as employers for income tax as well as unemployment tax purposes.
• Discuss how to shift employment from the parent under the old rules to the disregarded entity under the new rules.
• Cover work-arounds that will allow owners of disregarded entities to continue as the employer for reporting and withholding purposes.
• Distinguish the rules for AP process that still disregard the entity as the payer for 1099 and 1042 purposes.
• Give details on how to generate a proper vendor set up for a disregarded entity that will allow AP to sort domestic Form 1099 reportable payees from non-reportable payees based upon the documentation provided and to identify foreign payees subject to Form 1042 compliance.
• Explain how to handle single owned limited liability companies (LLCs) in meeting the special W-9 completion requirements and learn tips on setting up these accounts to lower the chances of later getting an IRS B Notice or TIN penalty. 

Jerri LS Langer, J.D., L.L.M, Cokala (Co-KAY-La) Tax Reporting Solutions