Did you know that more than 95 million people who are taxpayers claim the standard deduction and incur almost $700 billion! If you think that’s a whopping amount, more than 45 million taxpayers go ahead and make time to itemize their deductions and claim to almost 1 Trillion Dollars! Now that’s called a lump sum. If that does not make you step up your game in organizing your tariff calculations, then nothing will. End of the year period is usually the most fearful and strenuous time of all for the self – Employed. If you do not follow the rules of the tariff policy you could be facing with some intensive fines. This article will be your personal guide for all your tax queries.
The obligations faced towards the freelancers
Unlike the other workforce, freelance workers or the self – employed need to attain their own payroll taxations and other additional tax accountants independently.
Self – Employment, Income and Quarterly tax are few of the tax accountants in Sunnybank that are dealt with freelance workers. The self – employment tax is a social security tax that is applicable for people who work for themselves. Income tax is what derives from the income generated by the individuals and businesses alike.
Finding out how you qualify
Every self – employed worker and freelancer is obliged to the self – employment tax if their income is greater than $400. Church employees who earn more than $100 also need to adhere to this tax as expected. Any individual can chose to pay their taxes either on a monthly basis or even quarterly. If that sound too cumbersome, you can opt to pay all of your charges at the financial year or calendar year. However an important thing to keep in mind is that, when you decide to wait and pay at the end of the year you are bound to expect rather large amounts of fines in comparison. If you decide to pay on a quarterly basis there are specific dates that the payments need to be effected. These dates are been put forth by the Inland Revenue Sectors and are known as the quarterly payment deadline dates.
The filing process
As a freelancer, you will be bombarded with many financial terms in relation to the taxation process. It’s better to be familiar with the terminology and be prepared. Such words are asset, gross receipt, net loss & net profit, expenses, employer identification number, form C which has the profits and losses of your business and so on.