Roseville, CA Tax Accountant + CPA for Self-Employed Business Owners
Cook CPA Group
Self-employed business owners can easily feel overwhelmed by the task of managing their finances. Keeping track of the various aspects of a business’s operations, including bookkeeping, payroll, taxes, and much more, can be stressful and may even distract from the overall experience for customers and clients.
Luckily, self-employment tax accountants from the Roseville accounting firm Cook CPA Group are prepared to help businesses that pay self-employment taxes. Get in touch with Cook CPA Group today to learn more about the services that Cook CPA Group can provide to small businesses throughout the Roseville area. Call (916) 432-2218 today.
Understanding Self-Employment Taxes in Roseville, CA
Self-employed business owners must pay self-employment taxes in California. In larger companies, these taxes are usually taken out of the employees’ paychecks. Owners of small businesses must pay these taxes themselves, according to SECA, the Self-Employed Contributions Act. These taxes are also knowns as FICA (Federal Insurance Contribution Act) taxes. They are intended to ensure that people who are self-employed make the same contributions and receive the same benefits as those who are salaried.
Most self-employment taxes go toward Social Security and Medicare and are paid quarterly. The tax rate for this self-employment tax is 15.3% (12.4% goes to Social Security, and 2.9% goes to Medicare). Your business must pay this tax if your net earnings from self-employment were $400 or more. (Special requirements apply to church employees.). Self-employed business owners should note that they will have to pay self-employment taxes even if they are the sole employee of their business.
Self-employment taxes can be paid using Schedule C of Form 1040 when filing your annual taxes. If your business’s expenses amount to $5,000 or less, you may file Schedule C E-Z instead of the full Schedule C.
Taxes Paid by Small Businesses in Roseville
The CPAs from Cook CPA Group are able to help self-employed business owners with Social Security and Medicare taxes. They are able to help small business owners with other taxes as well. These include:
- Payroll taxes – This tax is paid according to employees’ payroll.
- Excise taxes – These taxes apply if your business sells certain types of products.
- Sales taxes – These taxes are imposed according to a state’s sales tax and are paid according to the amount of goods and services sold by a business.
- Property taxes – These are paid only if the business owns the commercial property on which they operate.
Claiming Deductions for Your Business Taxes
Self-employed business owners are encouraged to claim self-employment taxes. Accountants from Cook CPA Group in Roseville can help determine which deductions to claim when it comes time to file taxes. The following are deductions that self-employed business owners may claim:
- Equipment – Equipment and services that are used for the day-to-day operations of your business, including computers, cell phones, office supplies, office furniture, and internet service, may be claimed as tax deductions.
- Offices – If you use a part of your home for your business, you can claim it as a tax deduction. The amount that can be claimed depends on the size of the office space and whether you rent or own the home that the office is in. If you pay rent for an office, you are able to deduct the cost of rent. You are even able to deduct the cost of canceling a lease.
- Travel expenses – The costs associated with traveling for business, including flights, gas, and meals, qualify as tax deductions. To qualify for a deduction, travel done for business must last longer than a typical workday, require you to sleep in a place that is not your usual home, and have a specific purpose related to your business.
- Vehicle use – If your business requires the use of a vehicle, you can deduct the cost of operating it from your taxes. You are able to receive a deduction according to the standard mileage rate based on a certain number of cents per mile.
- Education – The cost of education in your field or industry can be deducted from your taxes. This includes the cost of books, classes, conferences, professional affiliations, and magazine subscriptions.
- Advertising – Businesses are able to deduct the cost of advertising of all types from their taxes. This may include online ads, print ads, traditional billboards, and more.
- Retirement plan contributions – Self-employed business owners may claim tax deductions for contributions made to retirement plans, including a SIMPLE 401(k), SEP-IRA, and SIMPLE IRA.
- Insurance – If you are a self-employed business owner that pays for your own health insurance and are not eligible to participate in a health insurance plan through your spouse, you are able to claim the premiums you pay as a deduction, as well as those of your spouse and dependents, if you also pay for them. Self-employed business owners may deduct the cost of premiums for insurance that protects their business, including business liability insurance, fire insurance, credit insurance, and car insurance.
Roseville Accountant for Self-Employed Business Owners
The CPAs that work with Roseville’s Cook CPA Group are prepared to put their extensive experience to use to help small businesses faced with self-employment taxes. Contact the accountants at Cook CPA Group to schedule a free consultation to talk about how a qualified CPA can help you and your business. Call (916) 432-2218 today.