Other Business Tax Filings
Small Business owners have to comply with other tax filings such as, issuing 1099 NEC and 1099 MISC, file quarterly federal and state estimated taxes, report and pay sales taxes, and other taxes depending on the industry they belong to.
We can assist you with the following:
The 1099-NEC (Non-Employee Compensation) form is used to report payments to non-employees for services worth $600 or more. This form was made in 2020 to replace box 7 on the 1099-MISC form, which was used to report compensation for people who were not employees.
The 1099-NEC is used to report payments made to freelancers, independent contractors, and other people who do work for a business but are not employees. The due date is January 31st of the following year.
Depending on the state and the type of business, a business owner may need to collect and pay sales tax on goods or services sold. Some states that tax specific services are Hawaii, South Dakota, New Mexico, and West Virginia
Most states require businesses to report and pay sales taxes on a quarterly basis. States and cities can have different sales tax rates and rules.
Tax Estimated Payments
The 1099-MISC form is used to report other income of $600 or more that is not reported on another form. This form is used to report rent, royalties, prizes and awards, and other types of payments as income.
The 1099-MISC is also used to report payments made to non-employees for services that don't count as non-employee compensation, like payments to attorneys and payments for fishing boat proceeds. The due date is January 31st of the following year.
US taxes are generally paid on a "pay-as-you-go" basis, meaning that taxes are paid as income is earned throughout the year. Estimated tax payments are required when a taxpayer's income is not subject to withholding, such as self-employment income, rental income, or investment income.
The IRS requires taxpayers to make estimated tax payments on a quarterly basis. The due dates for estimated tax payments are generally April 15, June 15, September 15, and January 15 of the following year. If a due date falls on a weekend or holiday, the due date is moved to the next business day. Be aware there are penalties and interest for late filing.