Lesson 5 of 5
In Progress

Other Considerations

Collin Gabriel February 2, 2022

Marissa Danley (41:01):

All right, couple little odd ends. Feel free to stop me. I’m just gonna run through these real quickly. Um, estimated payments. We talked about this a little bit. Employees have taxes withheld from their paycheck when you’re self-employed, you have to make some quarterly. Um, if you don’t, you might get some penalties. If you’re business varies, you might need to run a report. This is a good reason to keep up on your bookkeeping so that you can follow those trends. For me, I make about 80% of my money in 10 weeks for the year it’s wild. Uh, so you, you know, it might vary. You might need to take a look at it and see what you need to do. Again, record keeping I can’t stress how essential this is for both tax purposes and your business health. It helps you make better decisions. As Amber mentioned before, there’s bookkeeper spreadsheets.

Marissa Danley (41:50):

You can use some software there’s resource 10 99. Again, we talked about this. I’m just gonna zoom through it. The one thing I do wanna point out for this 10 99 K thing that is important, the, the regulations just changed. So for 2022, this is something you need to be aware of. Um, again, these are for credit card processing are PayPal fees. Anything that you use electronically to collect payments before you wouldn’t get a tax form, you wouldn’t get this 10 99 K, unless you had over 200 transactions and $20,000 in payments for 2022 and forward the difference here, it’s only 600 bucks now, regardless of the transactions. So a lot of people who were selling on eBay didn’t report the income. Now they’re gonna have to. So if, if you’re doing that, you know, if that’s something that you’re involved in, just be aware, the reporting is way different going forward.

Marissa Danley (42:50):

Um, COVID provisions. I’m gonna throw few of those out there. Some of these get really involved. So I’m gonna count on zoom through ’em here. Zoom ha anyway, um, unemployment and POA. So you may, as a self-employed person received the pandemic unemployment assistance in the past self-employed people didn’t get unemployment and we do didn’t get unemployment because as self-employed people, we didn’t pay into the unemployment system. So when all this stuff happened, all these people were out of work going well, I don’t know what to do because I don’t qualify for unemployment. I didn’t have wage insurance. Um, so the government said, okay, well, we’re gonna figure this out. We’re gonna grant some money to self-employed people who traditionally don’t qualify. Um, again, that’s what I just said. Here’s the other thing, a lot of people don’t know that unemployment, the PUA it’s taxable. So I think it ran through September this year.

Marissa Danley (43:48):

If you got PUA, you got unemployment, it’s taxable. You need to report it. Um, this is interesting though, this did happen mid tax seasons last year, it was a lot of fun in March. Um, the first $10,200 of your unemployment was excluded. We didn’t have to pay tax on that just for 2020, for 2021. That’s not true so far. So you’re gonna pay tax on all of that money from unemployment. Um, I say stay tuned because I don’t know what the heck they’re gonna do right now. They say, they’re not gonna change it. That it is taxable. But again, stay tuned. Um, P P P paycheck protection program. This was a series of loans that were converted to grants. So if you got P P P money, you generally do not need to count it as income. And you can deduct the expenses, which was fantastic.

Marissa Danley (44:45):

E I D L was another COVID provision. It was an economic injury disaster loan gave up the businesses from the SBA. Um, very low interest rates. Don’t know if you got one of these, if you did, if it was in 2020, your payments are due, starting 24 months from the date you got it, payments, uh, or loans that you got in 2021, you have 18 months to start paying on those grants. Law. Lot of people did get grants. A lot of people that I work with, um, oops, lemme go back to that. Grants may or may not be taxable, but generally they are. If you’re self-employed, um, if they’re self-employed, they’re gonna work just like self-employment income. And so we need to include them. We need to include them. Um, sometimes the provisions of the grants require specific things. You may need to pull those expenses and income out.

Marissa Danley (45:39):

If you do have grants, talk to whoever’s helping with your taxes and, um, work with them to figure out exactly what you need to do. Just so them to be aware of I’m gonna skip these last ones because they are T involved payroll calculations. I do have a funny little video, but in the interest of time, I’ll skip that as well. Um, and then just a couple resources there’s ONAC, which is fantastic. There’s a link for the E I D L if you’re interested P P P or unemployment cash, Oregon, again, with the free tax prep and then mercy core Northwest has some great small business classes. There’s my contact info. Please feel free to contact me as you and we are done.