cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Wonnie
Level 1

Need tax help

Hi! I'm new here and need guidance with tax purposes. I just became self employed and need to know if there is any other tax agency besides the irs that I must pay. My current setup in quickbooks simple is state sales tax for the irs in my state. Can someone please advise if I need to take money from my earnings to pay other obligations and if so, how?

 

5 Comments 5
EmilyCowan
Level 7

Need tax help

Hi @Wonnie - welcome to QB Community, and congratulations on your new gig! As an independent contractor I've never had to pay any additional taxes beyond the standard federal and state taxes. You can find some great tax resources and information on our Learning and Support page. (Definitely check out "Taxes for Freelancers.")

 

Moving forward, it's worth considering whether you should be paying estimated quarterly taxes rather than a lump sum come tax time. Here's a helpful primer on that.

 

What field are you in?

0223815939
Level 3

Need tax help

Wonnie, 

 

This is one of those situations where it will pay to visit a tax professional.  Depending on how you set up your company you will either be able to take out payroll taxes from your pay check, or pay quarterly esimates, or possibly both.    You also need to be aware that you are now 100% responsible for your SS, Medicare, and Fica taxes, of which your employer previously paid half .  And if you miss something, or your payments are late, not only is the tax due, but penalties and interest.    This is a situation where the saying, "You don't know what you don't know" applies. 

Anonymous
Not applicable

Need tax help

Hello @Wonnie,

 

I agree with @0223815939, in these complicated situations, it's important to get professional advice. Learn from them - down the road you maybe be confident enough to do it on your own. But when you're first starting out, the professionals can give you peace of mind and guide you on the right path! 

 

Do you have an accountant currently?

NDLL
Level 3

Need tax help

It depends on the state and if you have any employees.

 

I am in WA and we have to pay the following:

 

- WA State Sales Tax to the Dept. of Revenue

- Business and Occupation Tax  to the Dept. of Revenue

- Personal Property Tax to the county your business is located in

- Possible additional Business and Occupation taxes to individual cities you do business in.

-  For employees - 941 & 940 (IRS), WA State Unemployment and WA State Labor and Industries Taxes.

 

Most State's have a webstie and/or number businesses can get info from. 

Anonymous
Not applicable

Need tax help

@Wonnie, the Washington Department of Revenue Tax and Rate page might be a good place to start. Good suggestion @NDLL.

Need to get in touch?

Contact us