- RSUs, ESPP & stock optionsVesting, withholding gaps and the cost basis your 1099-B leaves out.Learn more about equity compensation →
- Multi-state employeesRemote work, travel days and mid-year moves, reported correctly in every state.Learn more about multi-state returns →
- Online sellersMarketplace income, inventory and sales tax in the states where you have customers.Learn more about e-commerce accounting →
- Consultants & B2B businessesWhen an S corporation election starts to pay off.Learn more about LLC vs. S corporation →
Tax work that fits Parsippany
Parsippany-Troy Hills sits where Interstates 80 and 287 meet Route 46, and its office parks hold one of the larger concentrations of corporate and regional offices in New Jersey. Many residents of Lake Hiawatha, Lake Parsippany, Mount Tabor and the rest of the township work for those employers, and many local businesses sell to them. That makes equity compensation, multi-state payroll and business-to-business sales the recurring themes.
RSUs, ESPP and stock options
- RSUs are wages when they vest. Employers usually withhold federal tax at a flat 22% supplemental rate, which is often too little for higher earners. We project the shortfall before it becomes a penalty.
- Watch the cost basis. Brokers often report RSU and ESPP sales with a cost basis of zero or a figure that leaves out the income already taxed on your W-2. Reported as-is, you'd pay tax on the same income twice. We correct it on Form 8949.
- ESPP and ISOs. Whether a sale is a qualifying or disqualifying disposition changes how much is ordinary income, and exercising incentive stock options can trigger the alternative minimum tax.
Working for a company with offices in several states
If you travel, split time between offices or work from home for an employer based in New York, more than one state may tax your wages. New York generally allocates RSU income for nonresidents by the days worked in New York between grant and vesting. We track the workdays, prepare each state's return and claim the credit on your New Jersey return so the same income isn't taxed twice. See New Jersey and New York multi-state taxes.
Online sellers and business-to-business companies
- Sales tax. New Jersey and most other states require out-of-state sellers to collect once their sales into the state pass $100,000 or 200 transactions in a year (thresholds vary by state). Marketplaces collect on their own sales, but not on your website's. See sales tax nexus.
- Resale and exempt sales. Sales to customers who buy for resale need a valid resale certificate on file, or you can be liable for the tax yourself.
- Inventory. Year-end counts, cost of goods sold and the small-business accounting methods that keep it simple.
Leaving a corporate job to consult
If you've left a salaried role to consult, your first year brings quarterly estimated taxes, self-employment tax and the question of when an S corporation makes sense. We set it up so you're not surprised in April.
How we work
Most of our work happens through our secure client portal, by phone and by video call, so you don't need to take time off to drop off documents. In-person meetings are available by appointment. We respond within one business day, and we're available Saturdays as well as weekdays.
Frequently asked questions
My RSUs vested and my 1099-B shows a cost basis of zero. Am I taxed twice?
Not if the return is prepared correctly. The value of the shares at vesting was already taxed as wages on your W-2, so that amount is your cost basis. We adjust the basis on Form 8949 so you only pay tax on the gain after vesting.
I work from home in Parsippany for a New York employer. Which state taxes my wages?
Possibly New York, under its convenience-of-the-employer rule, if you work from home for your own convenience rather than your employer's necessity. New Jersey then gives a credit for the New York tax on that income. Your specific arrangement matters.
Do I need to collect New Jersey sales tax on my online sales?
Generally yes, for taxable goods shipped to New Jersey customers, unless a marketplace facilitator such as Amazon collects it for you on those sales. Other states require collection once your sales there pass their economic nexus thresholds.
Do you meet with clients in person?
Yes, by appointment. Most clients work with us by video call and phone, and share documents through our secure client portal, so an office visit is never required.