BUSINESS CORNER
TECH NEWS
P R O D U C T W AT C H
A S S O C I AT I O N N E W S
3 INSIDER TAX TIPS
IN THE NEWS
A S S O C I AT I O N I N S I D E R
SPOTLIGHT
for Septic, Sewer and Portable Restroom IContractors NDEX
Approaching the tax season as a septic, sewer or portable restroom contractor can be challenging when you do not have enough information about tax laws and how they impact your business. Knowing what forms to fill and the processes involved in successfully scaling the tax season are pretty straightforward and doable once you get the hang of it.
1. KNOW HOW YOUR BUSINESS WORKS
W
than the W-2 form for employees in an organization,
e will be looking at tips that you can use to avoid the complexities of tax payments, be safe from
penalties and reduce any costs that you may owe. Not
Although having a small business is part of being a contractor, there are various forms in which small businesses operate, leading to a difference in how tax laws apply to them. For example, as a contractor, you can manage your business as a limited liability company, partnership or even an S corporation eligible for a particular tax designation. Being a contractor, you have differences in comparison with company employees regarding mode of employment and when it comes to filing taxes. Contractors have to pay self-employment tax on the IRS Schedule SE and report their income and deductions on IRS Schedule C. Additionally, rather you must register your income as an independent contractor using the 1099-NEC form.
only will you know how to operate tax-efficiently, but
2. TAKE ADVANTAGE OF TAX DEDUCTIONS
you will also be able to effectively run your business
Being an independent contractor, you have deductions
without dreading the tax season. Firstly, you need to
that you qualify for when paying taxes that reduce
understand your business and how taxes apply to you.
your tax liability. Such deductions come from direct
8 A ME RIC AN L IQUID WA S T E MA R C H 2022
Vi si t Us
