September 2020

Starting September 1st, employers can defer withholding and payment of the employee portion of the social security tax for workers earning less than $4,000 in a bi-weekly pay period.

It's never too early to do a "Paycheck Checkup" to make sure the right amount of tax is withheld from earnings - and avoid a tax surprise next year when filing your 2020 tax return.

As you approach retirement, it's vital to pay attention to several important financial matters to ensure a smooth transition.

Tax rules for hiring household help are complex. One mistake can lead to a tax headache that most of us would prefer to avoid.

If you're part of the gig economy, here's what you need to keep in mind regarding taxes.

TAX DUE DATES

September 10

Employees Who Work for Tips -
If you received $20 or more in tips during September, report them to your employer. You can use Form 4070.

September 15

Individuals -
Make a payment of your 2020 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES.
This is the third installment date for estimated tax in 2020.

Partnerships -
File a 2019 calendar year income tax return (Form 1065). This due date applies only if you were given an additional 6-month extension. Provide each shareholder with a copy of Schedule K-1 (Form 1065) or a substitute Schedule K-1.

S corporations - 
File a 2019 calendar year income tax return (Form 1120S) and pay any tax due. This due date applies only if you made a timely request for an automatic 6-month extension. Provide each shareholder with a copy of Schedule K-1 (Form 1120S) or a substitute Schedule K-1.

Corporations -
Deposit the third installment of estimated income tax for 2020. A worksheet, Form 1120-W, is available to help you make an estimate of your tax for the year.

Employers - 
Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in August.

Employers - 
Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in August.



IN THIS ISSUE
Tax Tips
QuickBooks Tips

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Encino, CA 91436
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