1-800Accountant Blog

self-employment-tax

Don’t Let Self-Employment Taxes Catch You By Surprise

What is Self-Employment Tax? If you work for yourself, you’re required to pay a self-employment tax, which comprises Social Security and Medicare taxes. When you work for a business, your employer takes out 7.65% of your gross income to pay the federal government to fund Medicare and Social Security, while your employer pays the other […]

s-corporation

Get The Complete Rundown on S-Corporations and Taxes

What is an S Corporation? When you’re a business owner, you can elect to have your entity be classified as an S corporation for federal tax purposes using Form 2553. An S corporation is a pass-through entity, which means your business does not pay income tax at a corporate level. Instead, you and your shareholders are […]

single-owner-llc

A Quick Rundown of Single-Member LLCs

What is a Single-Member LLC? A limited liability company (LLC) is a business structure registered in the state where your company conducts business. Owners of an LLC are called members, so a single-member LLC is composed of just one owner. As an owner of a single-member LLC, you are not considered an employee. To pay […]

schedule-c

Tax Form Schedule C

Schedule C determines whether your business income is a profit or a loss. Completing a Schedule C will require a lot of documentation, and it comprises several parts. You may learn that if you complete a Schedule C, it may also involve other tax forms. Here is what you should know about Schedule C (Form […]

abcs-small-business-bookkeeping

Learn the ABCs (Absolute Basic Components) of Bookkeeping

What is Bookkeeping? In general terms, bookkeeping is the process of organizing, recording, and classifying financial transactions. The purpose of bookkeeping is show yourself, clients, and investors the current financial position of your company and how your business has performed over time — whether successfully or poorly. Utilizing a bookkeeping software such as ours is […]

w4-form-and-filing

Tackling Your Form W-4 As You Start a New Job

What is Form W-4? When starting a new job, you’ll be presented with Form W-4, or Employee’s Withholding Allowance Certificate. Essentially, this form tells your employer how much money needs to be withheld from your paycheck for state and federal taxes. The withheld amount is based on your marital status, the number of allowances or dependents […]

w7-form

Form W-7: Your Gateway to an ITIN

Form W-7 is used to apply for or renew an Individual Taxpayer Identification Number, or ITIN. This nine-digit number allows non-citizens who are ineligible to receive a Social Security Number and lack U.S work authorization to file tax returns to the IRS. What is Form W-7?  A Form W-7 is a tax form application for an individual to […]

what-is-futa-tax

Funding Unemployment Benefits through Standard FUTA Taxes

First enacted in 1939 in the aftermath of the Great Depression, the Federal Unemployment Tax Act (FUTA) was established to support involuntarily unemployed individuals. Imposing an unemployment tax on employers, this federal law supports states that need additional money to pay out benefits to their residents. FUTA taxes are not withheld from employee wages but […]

year-end-tax-strategies-for-individuals

Year-End Tax Strategies for Individuals

Here are a few tax tips you might consider before the end of the year, which could potentially reduce your taxes when Uncle Sam comes knocking in April. Generally, you want to lower income and accelerate deductions now if you expect next year’s tax situation to be similar to this year’s. Donate to charity: The IRS […]