Important Tax Considerations for Self-Employed Miscellaneous Practitioners
One of the difficulties that may be produced as a handyman is to figure out how to deal with tax issues. Because of the complexity of the tax law, it is clear that most people do not want to enter. As a handyman for yourself, you should know some of your tax situation, if you have an employee, there are a few other things you might want to remember
First, if you are an individual operator, There is no one day deducting taxes from your salary. Therefore, the IRS requires you to do so in the form of "tax". Estimated taxes are usually paid on a quarterly basis, but the timing of doing so is a bit weird. The estimated taxes are paid using the IRS Form 1040-ES, which will be paid on 15 April, 15 July, 15 September and 15 January of the following year. Failure to make these payments can lead to severe penalties that can exceed 45% of the tax, not to mention the interest rate of daily interest
The second thing you may want to care about is the payroll tax. When you have an employee, you will need to deduct the income tax and social security and medical insurance tax for your employee's salary. In addition, you must deduct the employee's social security and medical insurance from your own pocket. These taxes are in addition to any country's withholding tax, unemployment tax, and even taxes based on where you are, and even local taxes. IRS requires you to submit quarterly tax returns, Form 941, and actually deposit these taxes on quarterly, monthly or even weekly basis in US Treasury, depending on how much your payroll is. Once again, if you fail to pay these taxes at the time of expiration or failure to submit your tax return, it may result in a very large penalty and interest expense, which may double your amount
Trouble due to these types of tax issues, the IRS is facing more and more fines and interest on tax liabilities, actually can do is to protect your assets and bank accounts from the IRS seizure, but you must be active
If you do fall on payroll or self-employment tax, you must understand these taxes, especially the most important areas of law enforcement, throughout IRS. These taxes are the funds that the federal government relies on the day-to-day operations of the funds, so they are chasing the people who do not pay.
However, please bear in mind that the IRS is not entirely evil and they will work with you. But as I have just said, you must be proactive.