The Small Business Tax Help Blog

Posts Tagged ‘billing’

Question: As an independent contractor, where do I to go pay my taxes?

I became an independent contractor 3 month ago. I understand that I need to make quarterly payments. The first one is due June 15. I do not know where I go & make the payment. Is there a place I go to & write a check to pay it? or Do I send in a check to IRS? What kind of forms do I get? First time as an independent contractor so the tax system is very confusing for me.

Thanks in advance for your help.

Answer: for federal tax – download form 1040-ES from www.irs.gov – you would pay 15.3% of your income for selfemployemnt taxes, plus the % you expect to owe for overall income taxes – pay 15% to be safe (30.3% total)

probably a similar form for your state – google for your state’s dept of revenue website – pay whatever your state tax rate is times your income for that “quarter”

or google “your state” and estimated tax payment coupon or similar phrases

Summary of 2011 NM legislative session

The Associated Press SANTA FE, N.M. A summary of developments in the Legislature’s 60-day session, which ended Saturday. Gov. Susana Martinez has until April 8 to sign or veto bills passed during the final stretch of the session. BUDGET-FINANCES(equals) Passed: $5.4 billion budget for education and general government programs in fiscal year starting July 1; higher pension contributions for …

Contractors find tax confusing

Question: Peachtree, Quicken, or Quick Books?

Which of these software packages would be best for me? I have a small garden design business, I work solo (no employees), I carry no inventory, and have few expenses. I invoice in excel now, and my terms are net due on receipt (so no A/R). I just need something basic to track income, expenses, sales tax, and my bank account. Which would you recommend and why? Also which version of each if possible, they all have different levels and versions. Thanks!!!

Answer: I don’t have any knowledge of Peachtree, but I have used Quicken Home & Business since 2001, which I think would be a good fit for you. For what I know of QuickBooks, it’s good if you have payroll to handle and checks to cut, among other things, but that’s where it differentiates itself from Quicken Home & Business.

Plus, I believe QuickBooks (I’m not an accountant, so I may be off base here) uses a double booking accounting system where every transaction shows up in 2 different accounts and every transaction is logged so you can’t just erase something.

For invoicing, tracking expenses, bank accounts, sales tax, income, Quicken Home & Business is the way to go from personal experience.

Good luck!

50 Must-Have Small Business iPhone and iPad Apps

Editor’s Note: Last year one of our most popular articles of the year was written by Shara Karasic, who pointed out 10 small-business apps for the iPhone.

Small Business Expenses, Accounting and Bookkeeping

Question: Line 363 Canada Employment Amount Federal Tax Sch. 1?

okay i should probably repeat grade 7 but i’m not getting how this helps me. in the guide it states that the non refundable tax credits reduces your federal tax but if the total of these credits is more than my federal tax i will not get a refund for the difference. if i hadn’t entered the amount of $1,019 on line 363, i would be getting WAY more of a refund. as it stands, i now owe, as it’s more than the federal tax i paid. also, if you entered an income of over $1,019 (and like who wouldn’t…) on line 101 of the return, then you enter the maximum ($1,019) on line 363 of the federal tax schedule? sorry if i sound dumb, but this is the first time i’ve done my own taxes. somebody tell me how this helps me out, this line 363 amount, thanks!!
actually, i checked it over and it was just my calculater display that screwed up and missed a number….so yes, with the $1,019 included, i saved $150, wooohooo! now i only have to pay $6 instead of …. well you do the grade 5 math, lol

Answer: >>if i hadn't entered the amount of $1,019 on line 363, i would be getting
>>WAY more of a refund

This is impossible.

Either a Non-Refundable Tax Credit reduces your taxes by 15% of the line amount (in this case 15% x $1019) (see line 38 of Schedule 1), or they are more than the total tax liability, in which case they do nothing since line 23 can't be negative.

It's actually grade 5.

U.S. Census Underway; Workers Needed Locally

On Monday, some Charleston residents started to receive their 2010 Census forms, nearly two weeks in advance of the rest of the nation.

John McCain: Town Hall 04/30/08

Tax hike discussed by council, library trustees

The Woodland City Council and the city Library Board of Trustees met to discuss a proposed sales tax measure that would increase sales tax by a quarter of a cent.That quarter cent increase would help fund the Public Library, Parks and Recreation, and public safety services.

How and Why Employee Benefits are a must for todays workers!

Question: Question about CANADA self-employment & income tax!?

I am sick of reading and going through tons of forms and websites, so if someone can give me a more realistic answer I would appreciate it.
I have just started a new job (SELF-EMPLOYED) doing translations and I will be earning about 3000 dollars a month.

Could some one tell me how much in all (maybe a percentage) of my monthly earnings I would have to pay as income tax, CPP, EI and the likes?

I live in Halifax, Nova Scotia.

Thanks!

Answer: EI - you're EI exempt since you're self employed, so you don't pay EI, nor are you entitled to claim EI.

CPP - you have to remit 9.9% of your income to the CRA for CPP. The first $3,500 of income you earn is CPP-free and everything from $3,500.01 to $44,900 is subject to the 9.9% tax

Finally income tax is remitted using the formules laid out by the CRA. Probably the easiest way to calculate it is from the CRA's calculator at http://www.cra-arc.gc.ca/eservices/tax/business/pdoc-e.html

Also you're going to have to register your self-employed business with the CRA.

Saputo Inc.: Financial Results Fiscal 2010 Third Quarter, Ended December 31, 2009

MONTREAL, QUEBEC-- - Saputo Inc. - We are presenting the results for the third quarter of fiscal 2010, which ended on December 31, 2009.

I pledge to Stephen Harper