Taxes and Liens

freight prepaid material accounting

shipping paid for by seller

freight allowed material accounting

buyer pays shipping

net 30 terms

you have 30 days to pay after invoice date

COD

cash due on delivery

V 10 Net 30

1% discount on payments within the 1st 10 days

EOM

payment due at the End Of the Month

medicare rate

1.45% of gross pay, employers must match this and not deduct amount from employee’s payroll

employer identification number EIN)

needed to hire employees, fill out SS4 form to apply for federal ID and EIN

self employment tax

social security/ medicare tax for people who work for themselves

how long muset employee tax forms be kept

4 years at least

social security rate

6.2%, during the first year make monthly social security payments

when must W2 forms be requested by

january 31st

Form 940

reports federal unemployment taxes

Form 1099-MISC

used to report payments made to subcontractors

what is the sales tax

4.75% state, 2% federal

liens

used to ensure contractors/ subcontractors are paid

when can a notice of contract be made

within 30 days of permit issuance

what is the timeframe to file for a lien

within 120 days after the last day of labor

who has priority; mortgage or labor lien

mortgage because its first in public record it takes priority

should subcontractors sign lien waivers

yes

who is responsible for securing building permit

the general contractor

for projects more than _______ a GC license is needed

$40,000

state licensing board has ____ members

9; 5 GC’s, one structural engineer and 3 citizens

unlimited license fee

$125.00

intermediate license fee

$100.00

limited license fee

$75.00

how long does a contractor have to replace a qualifier

90 days

when does a license expire if not renewed

on 12/31; invalid 60 days after that, late fee is $10 per month

how long must a license be expired before you must restart the application process

4 years