Tax & QuickBooks Blog

6/30/2019

Self-Employed Tax Tips for New Business Owners

Ah, summer – the time of year when some people dive into entrepreneurship. Whether it’s a summer job, a part-time gig, a side-hustle or a small business, you may be considered self-employed. If that’s you or someone you know, here are a few tips to help navigate your tax situation.
Know If You’re Self-EmployedIf your income is from a business or service, for example, working as an independent contractor in sales, or a social media sensation to babysitting, housecleaning, gardening, and even being a freelance promoter, etc.; that type of income is self-employment income. Your self-employment income is reported on Schedule C or Schedule C-EZ, Profit or Loss from Business. However, you will be able to reduce the income you make by being able to claim business expenses, such as supplies, auto mileage, and cost of goods sold.
A QuickBooks ProAdvisor like Mike McVay, Certified QuickBooks ProAdvisor helps uncover industry-specific business deductions you may not have even known you were eligible for.
Withholding and Estimated TaxesIf you’re an employee, your employer withholds tax from your paychecks. If you are self-employed, you may have to pay estimated taxes directly to the IRS on set dates during the year. You are expected to pay estimated taxes if you expect to owe $1,000 or more annually.
All Income Must Be ReportedAlthough you can earn a certain amount of income each year without having to pay taxes or file a tax return, if you are required to file a tax return, all income you receive from any source should be reported on your the return. That includes income from side jobs, self-employment, barter exchanges, and any sort of fellowship for which you perform services. If the net income after subtracting expenses is $400 or more you are required to file a tax return and pay self-employment taxes, which will be included as a part of your personal income tax return on Form 1040.
Barter IncomeSometimes you aren’t paid in cash and instead, you receive services or goods in exchange for your self-employment work. That’s called bartering, and you must report the fair market value of the goods and services you receive. For example, if you spend the summer tutoring your neighbors’ children and you receive a credit for the restaurant they own or a bicycle from the bicycle shop they own, then the value of what you received is considered self-employment income to you.
Filing A Tax ReturnIf you can be claimed as a dependent on someone’s tax return, you’ll still need to file a tax return if your income exceeds the minimum gross income filing requirements, or if your self-employment income is $400 or more. Even if you aren’t required to file a tax return, you’ll still want to file if income taxes have been withheld from your paycheck since you may get that money back or it could also generate a tax refund if you’re eligible for any of the refundable tax credits like the American Opportunity Tax Credit or the Earned Income Tax Credit.
Don’t worry about knowing these tax rules. You can easily track your business income, expenses, mileage, and figure out your estimated taxes year round with QuickBooks. Mike McVay, Tax Accountant in Pensacola, FL can help you pay the least amount of tax.
Call Mike McVay today at 850-725-5696
Mike@MikeMcVay.com
www.PensacolaFLTax.com

6/22/2019

McVay Business Services removes the burdens of time consuming and complex administrative tasks, helping business owners refocus their energy on what they do best, building their company. From QuickBooks to Taxes and Employee Leasing we have it all.

The Benefits of Employee Leasing

When your company faces hiring needs, often the first thing that comes to mind is to make a long term hire. In actuality, there are a variety of alternative workforce solutions available to fulfill hiring needs, each with its own features, benefits, and costs. Employee leasing is a staffing solution that should be considered for the following reasons:

Decrease Administrative Cost Burden
According to United States Chamber of Commerce Statistics, “the average business spends 36.6% of gross payroll on employee benefits, and another 8.5% on payroll administration.”

Considering the costs of HR administration associated with onboarding your own employees and providing ongoing benefits and payroll processing, partnering with a staffing agency to lease employees is a cost effective alternative as the agency incurs these administrative costs at an all-inclusive rate.

Mitigate Employer Liability
Leasing employees means that a third-party staffing agency is the employer of record for your staff. Through an Employee Leasing structures, staffing agencies help by acting as a Safe Harbor for your company, assuming the responsibilities and liabilities that come with being an employer.

Access to Desirable Benefit Plans & Rates
Agencies that offer Employee Leasing services can leverage economies of scale and can therefore negotiate with benefits providers. This means a staffing agency may be able to offer more competitive and desirable benefits, such as extended health insurance, dental plans, and pensions, at a much lower cost than your company could negotiate on its own.

Gain Performance Management Support
If you’re partnering with an active staffing agency that manages their employee’s performance with scheduled reviews and retention programs, the employees you lease will be provided support on an ongoing basis by the staffing agency. While this active management style is not always requested by companies who lease employees, some companies prefer it as it allows for objective feedback to be given to both the employee and the company, and training and development support to be provided when required.

McVay Business Services
Mike McVay, Certified QuickBooks ProAdvisor
Tax Accountant/Employee Leasing Services

5336 N Blue Angel Pkwy
Pensacola, FL 32526
850-725-5696
www.PensacolaFLTax.com

6/15/2019

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6/14/2019

What Happens If You Don’t File Taxes?

McVay Business Services
"Past Year Tax Filing Experts"
850-725-5696
5336 N Blue Angel Pkwy
Pensacola, FL 32526

It’s easy to put off filing your taxes. Life is jam packed with places to be and things to do. Finding time to organize your tax information and complete your return may seem hard.

If you’re like many people, it’s not terribly hard to find reasons to procrastinate all kinds of things you need to do, including filing your taxes.

If you wait too long and miss the April deadline, you may wonder if you should just skip filing altogether. We’ve all heard about someone who doesn’t file – ever. They go years without reporting income or filing a tax return, and they get away with it. If they can do it, why can’t you?
In this case, late really is better than never and filing, even if it’s past the deadline, is the best course of action. Here’s a closer look at why you shouldn’t simply choose to opt out.

What Happens If You Don’t File Taxes If you don’t file your taxes with the IRS by the deadline there can be several tax penalties which will cause you to have to pay even more money to the government. So even if you can’t pay the full amount at once you should still file your taxes on time.
You can also file an extension which allows you some extra time to figure out your taxes. Below are five reasons why you should file your taxes.
1) Harder Than Ever To Get Away Without Paying Taxes The IRS may be large and sometimes slow, but the agency has one thing on its side: information. An incredible amount of information is fed into IRS computers every year, and there’s a good chance some of that information concerns you.
For example, each year, your employer sends a copy of your Form W-2 to the IRS. The agency then waits, expecting a tax return from you based on your wages indicated on that W-2.
In addition, banks, investment companies and businesses send Form 1099 to the IRS to report various types of income you received throughout the year. If you sell real estate, the IRS receives a form showing how much you received from the sale.
It may take the IRS some time to match your income up with your tax return, but eventually they will. If you didn’t file your return, they’ll figure that out too.
2) Falling Behind On Your Taxes Creates Unnecessary Stress Getting behind on any bill is stressful. Falling behind on filing your tax return(s) and paying your tax bill(s) can feel even worse. Fortunately, its stress you can avoid.
With Mike McVay, Tax Accountant you can file your return before it’s due and feel confident the program has helped you find all possible deductions and tax benefits. And later, if you believe you may have missed something, you can always amend your return. Just remember you’re better off filing before the deadline so you can avoid paying penalties and interest that may come with filing late.
3) The Longer You Wait, The More Serious The Consequences. Once the IRS determines you should have filed a return and didn’t, you’ll start hearing from them. You’ll likely receive a notification letter from the IRS stating you will be penalized for not filing a return.
The IRS may also create a return for you. For example, if your employer reported wages, the IRS may create a tax return showing those wages. The catch? The IRS doesn’t know about any deductions or other tax benefits you may deserve. They typically only know about your income, and unless you straighten things out, you could end up paying a lot more in taxes than you should.
If the IRS doesn’t hear from you once you’ve been contacted, things can get more serious. Your bank may send you a notice indicating your money has been seized by the IRS. The agency may also put a lien against your property or garnish your wages. And, during all this time, interest and penalties are piling up, meaning the IRS can take more of your money.
4) What If You Don’t Owe? You Might Have A Refund The IRS has strict guidelines in place indicating who needs to file a tax return. If your income falls at or above the minimum income requirement, you’ll need to file even if you think you won’t owe anything or receive a refund. You have three years from your filing deadline to file for a refund.
But, there’s more. Thanks to certain credits, such as the Earned Income Tax Credit, you may be entitled to a refund even if you aren’t required to file. In this case, you won’t get the refund if you don’t submit a return, therefore it may be in your best interest to do so.
5) Better To File Now, Even If You Can’t Pay Some people avoid filing because they can’t afford to pay the tax bill. However, you should always file on time, even if you can’t pay all of the taxes due. If you wait, you’ll be faced with a late filing penalty– which is just one more thing you’ll have to pay. The failure-to-file penalty is 5 percent per month based on the amount of tax you owe.
If you are unable to pay your tax bill quickly, the IRS has payment installment plans. Approval of an installment plan is automatic if you owe $25,000 or less, can prove you cannot pay the total amount you owe at the time it’s due and are able to pay off the tax in three years or less. In addition, you or your spouse can’t have had an installment agreement with the IRS in the past five years.
Mike McVay, Tax Accountant Can Help - FREE Tax Review * 850-725-5696

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Self-Employed Tax Tips for New Business Owners

McVay Business Services removes the burdens of time consuming and complex administrative tasks, helping business owners refocus their energy on what they do best, building their company. From QuickBooks to Taxes and Employee Leasing we have it all.

The Benefits of Employee Leasing

Increase Your Web Visibility

What Happens If You Don’t File Taxes?

What Happens If You Don’t File Taxes?

McVay Business Services
"Past Year Tax Filing Experts"
850-725-5696
5336 N Blue Angel Pkwy
Pensacola, FL 32526

Best Price
No Compromise

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YOUR CART

Self-Employed Tax Tips for New Business Owners

McVay Business Services removes the burdens of time consuming and complex administrative tasks, helping business owners refocus their energy on what they do best, building their company. From QuickBooks to Taxes and Employee Leasing we have it all.

The Benefits of Employee Leasing

Increase Your Web Visibility

What Happens If You Don’t File Taxes?

​What Happens If You Don’t File Taxes?

McVay Business Services"Past Year Tax Filing Experts"850-725-56965336 N Blue Angel PkwyPensacola, FL 32526

Best Price​No Compromise

Author

Archives

Categories

Subscribe to our newsletter

What Happens If You Don’t File Taxes?

McVay Business Services
"Past Year Tax Filing Experts"
850-725-5696
5336 N Blue Angel Pkwy
Pensacola, FL 32526

Best Price
No Compromise