The biggest difference for you is that you are now going to be responsible for paying estimated taxes to the government. You are required to pay these quarterly, on April 15th, June 15th, September 15th, and January 15th. You will be responsible for keeping track of your business income and expenses, so it’s important that you develop a good accounting system to make your year-end reporting as seamless as possible. It’s also important that you meet with your CPA, at least yearly, to make sure you are tax planning correctly. BNA is happy to help you with this transition. You can contact us at www.bnacpa.com/contact for more information.
I have always been a W-2 employee, but recently I switched to a 1099 contractor position. I don’t know what this means for me tax wise. Can you help?
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