| Tax dangers and annoyances
...if your business address is in San Francisco, by 2/28/0X you must file the San Francisco Payroll Tax Statement. The tax is often zero, but the penalties can be excessive for failure to file. ...all businesses must notify the California EDD of any unincorporated contractors who were paid more than $600 each year. You must also report any new employees you hire. This information is reported on forms DE 34 and DE 542. This requirement is due within 20 days of hire. You must also have each contractor fill out IRS form W-9 and retain it in your files. You must have a signature on each W-9. Failure to do so subjects you to 31% backup withholding and excessive penalties. The IRS/FTB require forms 1099/599 and the IRS transmittal form 1098. You must use the colored forms available at any stationery store. The 1099 preparation cheapest service, that I can find, is Paycycle.com, or Paychex, in San Bruno/San Rafael. You may use one of the multipart 1099's in lieu of form 599 for the FTB. The FTB transmittal form is 598 which you must buy at a stationery store. ...landlords who pay interest to tenants in excess of $10 must file 1099/599. ...if you have household employees you must contact a payroll tax form service provider such as Paychex. |
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| Robert Lee Riley CPA, MBA-tax |
| Riley Accounting |