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Small Business Tax Debt – 1099

Small business taxes can be confusing, especially if you have contract employees. Having contract employees differs from having regular hourly or salary employees. If you are a small business owner, and are having trouble navigating through your Small Business Taxes and 1099’s, contact New York Tax Attorney Service at (347) 535-4017. They can connect you with a qualified tax professional in New York City, .

The difference between 1099 and W-2:

A regular salary or hourly employee fills out a W-4 form when they are hired. A W-4 form lets the employer know how much tax to withhold from each paycheck. The employee may update their tax information if their circumstances change, at any time. The employer is then responsible to pay the taxes withheld from each employee to the IRS. At the end of the year, the employer will provide the employee with a W-2 form to file their taxes.
GET A FREE CONSULTATION ON BUSINESS TAX DEBT. CALL (347) 535-4017!
A contract employee is basically someone who works for themselves. They may contract their work to several different employees at the same time, and therefore, they are responsible to withhold their own taxes and make their own tax payments. A contract employee has to fill out a form W-9, which will verify the contractors Taxpayer Identification Number (TIN). At the end of each work year, the employer then gives the contract employee a 1099, which the employee uses to file their taxes.

What this means for a small business:

If you are a small business owner and have contract employees you may need to file a form 1099-MISC at the end of the year. There are generally 4 rules that say you need to file this:
  • You paid someone who is not your employee
  • You made the payment for services in the course of your business
  • You made a payment to an estate, individual or partnership
  • You made a payment to the payee of at least $600 during the year
If you want to see the full list or learn more, visit irs.gov. There are more forms that need to be filed with the 1099-MISC, as well. If you not issue a 1099-MISC to you contract employees by the deadline, you can accrue a penalty for each form not issued.
CALL (347) 535-4017 TO FIND OUT YOUR OPTIONS FOR BUSINESS TAX DEBT.
Small business taxes differ for each type of business. The amount of employees you have can make a difference as well. It can definitely be a confusing process. There are so many forms, and so numbers to find and remember.

Get the best solution for small business taxes

The best solution for a small business would be to get in touch with a tax professional. They are skilled with tax laws, and help each type of business file the correct forms, and get them filed in a timely manner. The last thing you want is to be late on your Small Business Taxes. New York Tax Attorney Service can will help you get a tax professional perfect for your needs. Call (347) 535-4017 today, to be linked to a qualified tax professional right now!
IF YOU NEED MORE INFORMATION ABOUT SMALL BUSINESS TAX DEBT, CALL (347) 535-4017!
 
 

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If you are a small business owner and are having problems with the IRS, due to how your 1099 filing was done, then contact New York Tax Attorney Service right now by calling (347) 535-4017 and get a professional, complexly free, consultation to learn what your options are. There is no charge, call (347) 535-4017 right now!