What you need to do before December 31, 2021 if you are self-employed - Links to resources!
1. Income Checkup – If you are going to we over $1000 at the end of the year (federal or state), make an estimated payment by January 15th.
IRS paycheck checkup tool can help: [ Ссылка ]
2. Document your time off for Sick Pay - If you had to take off for Covid January to March 2021. This includes getting vaccinated, isolating / quarantining, taking time off for kids being home, etc. You can get paid for your time off.
Report on this form: [ Ссылка ]
3. 1099s - Get contract workers’ information and total what you paid them. 1099s are due to the government and your workers by January 31.
IRS form to request your workers info: [ Ссылка ]
Super easy place to file online for cheap (based in Fayetteville, AR): [ Ссылка ]
4. Inventory - If you sell products (including food and beverage) Take a physical inventory of the items you sell AND the materials you use to make the products you sell.
5. Deferred payroll taxes - If you deferred 2020 payroll taxes under the Cares Act, the first half is due December 31st. You would have gotten a letter with the amount for each quarter your deferred.
6. Calculate your mileage – Figure out your business mileage for the year if you use a regular car or truck for business. Every mile is worth 56 cents. You must document your business purpose and your mileage.
Here is a blog I wrote on mileage and vehicles. [ Ссылка ]
7. Bookkeeping – Take an honest look at your recordkeeping. If you have nothing added up and hate doing paperwork, get help. You don’t expect me to do your job, I don’t expect you to do mine. Ask for help.
8. Franchise Tax / Annual Reports – This one is easy. If you have an LLC, corporation, or Nonprofit, go to the Secretary of State website for your state and search for your business. Be sure you are in ‘good standing’. If not, you probably need to pay your franchise tax or file an annual report before the end of the year.
9. Labor posters – if you have employees. update your labor posters. You do not have to buy them. Lots of people try to sell them to you in the mail. You can download and print from your states Department of Labor website.
10. Annual Meeting – If you are an LLC, corporation, or nonprofit, be sure to have an annual meeting, even if you are a single-member LLC and have only yourself to meet with. Re-elect all your officers according to your operating agreement, approve the notes from the last meeting and any changes like changing banks or taking out a loan. Keep all your notes (meeting minutes) in your corporate book.
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