Tax Questions

Discussion in 'Business Operations' started by 4-Seasons, Jan 30, 2008.

  1. 4-Seasons

    4-Seasons LawnSite Member
    from NJ
    Posts: 63

    Just got my tax registration in. It shows a bunch of tax prices and what to charge. My question is is that all that Uncle sam is going to be taking out (7%) of my $5000? Is there any other taxes or charges that i will pay. (Example: I bring in $5000 for the 1st. Quarter is all i have to pay uncle sam $350)....
     
  2. quipit

    quipit LawnSite Member
    Posts: 29

    Are you referring to a state sales tax? Uncle Sam doens't get any of the taxes you collect...the Governor does and it shouldn't cost you anything as long as your clients remit it to you or if you don't spend it all...lol
     
  3. 4-Seasons

    4-Seasons LawnSite Member
    from NJ
    Posts: 63

    Yes i referring to state sales tax or who my taxes go to..
     
  4. quipit

    quipit LawnSite Member
    Posts: 29

  5. Flow Control

    Flow Control LawnSite Bronze Member
    Posts: 1,267

    Tax Question: I paid an hourly worker this season and withheld his taxes and mailed his W-2. That same worker also was given an opportunity at sales, and was paid 15% of any sales he made. Now he was not paid an hourly rate for the sales and he went on the sales calls on his own time and did not close all of his estimates. Well this is the first year we have let a person besides myself do sales and I was unclear how to process the payments so we agreed to just write the checks to him straight and that he would be responsible for the taxes. Well I send him a 1099 for the money he made from sales and now he is raising a storm about it and was saying that it is illegal to mail him a W-2 & a 1099. Any advice. Going to call a IRS business number that specializes in 1099 & W2's questions for employers tomorrow in the AM.
     
  6. Flow Control

    Flow Control LawnSite Bronze Member
    Posts: 1,267

    Talked with the IRS, I have to do a correction on the 1099 to a $0 amount and do a correction on the W2 and add that original 1099 amount to his previous W2 amount and then I pay his taxes since I did not withold them.
     

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