Tax Advice - FreshBooks Blog https://www.freshbooks.com/blog Information and inspiration on how to start a business, grow your business, tax tips, freelancing & more from FreshBooks! Sat, 13 Aug 2022 00:00:58 +0000 en-US hourly 1 https://wordpress.org/?v=6.0.1 Form 1099-NEC: Your Guide to Reporting Non-Employee Compensation https://www.freshbooks.com/blog/1099-nec https://www.freshbooks.com/blog/1099-nec#respond Tue, 19 Apr 2022 16:56:47 +0000 https://www.freshbooks.com/blog/?p=71404 Call them freelancers, independent contractors, or gig workers—whatever term you use, if you hire workers that aren’t W-2 employees to work in your business, they’re non-employees in the eyes of the Internal Revenue Service (IRS). And instead of issuing a W-2 at year-end, you report non-employee compensation for each of them on Form 1099-NEC. What […]

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]]> https://www.freshbooks.com/blog/1099-nec/feed 0 Prepare Your Taxes With Confidence Using the CRA T4002 Guide https://www.freshbooks.com/blog/cra-t4002-guide https://www.freshbooks.com/blog/cra-t4002-guide#respond Thu, 31 Mar 2022 16:38:41 +0000 https://www.freshbooks.com/blog/?p=70190 There aren’t many people who wake up in the morning and feel excited about preparing their taxes. When I talk to clients, they tell me about their anxiety about preparing their business tax schedules and dealing with the Canada Revenue Agency (CRA). I get it, it’s not your area of expertise and let’s face it, who […]

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]]> https://www.freshbooks.com/blog/cra-t4002-guide/feed 0 Form 8027: Your Guide to Reporting Tip Income https://www.freshbooks.com/blog/form-8027 https://www.freshbooks.com/blog/form-8027#respond Thu, 17 Mar 2022 21:33:56 +0000 https://www.freshbooks.com/blog/?p=70337 If you own a bar, restaurant, or other food or beverage business, tips are likely a part of doing business. Bar and restaurant owners usually pay tipped employees a base hourly wage and tips make up the remainder of their compensation. Reporting employees’ wages and withholding on their W-2s is complicated enough, but figuring out […]

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]]> https://www.freshbooks.com/blog/form-8027/feed 0 Should Service Businesses Use COGS (Cost of Goods Sold)? https://www.freshbooks.com/blog/should-service-businesses-use-cogs https://www.freshbooks.com/blog/should-service-businesses-use-cogs#respond Tue, 08 Mar 2022 17:02:15 +0000 https://www.freshbooks.com/blog/?p=70114 When you think about cost of goods sold (COGS), you might think of a wholesaler or retailer who sells physical products, also known as “goods.” Companies that sell products account for costs of goods sold on their profit and loss statement, and it’s an essential metric for understanding the total amount the business paid for […]

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]]> https://www.freshbooks.com/blog/should-service-businesses-use-cogs/feed 0 What Is IR35? Here’s What You Need to Know https://www.freshbooks.com/blog/ir35-off-payroll-working https://www.freshbooks.com/blog/ir35-off-payroll-working#respond Fri, 25 Feb 2022 18:58:47 +0000 https://www.freshbooks.com/blog/?p=69975 If your business hires contractors or off-payroll workers in any capacity, you need to know about the IR35 rules. New IR35 rules came into effect in April 2021. This shifts the responsibility for identifying workers’ employment status onto private businesses. Up until then, this liability was met by the intermediary company. So now it’s up […]

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]]> https://www.freshbooks.com/blog/ir35-off-payroll-working/feed 0 What Is a P11D Form in the UK and Why Does It Matter? https://www.freshbooks.com/blog/p11d-form https://www.freshbooks.com/blog/p11d-form#respond Fri, 25 Feb 2022 18:56:32 +0000 https://www.freshbooks.com/blog/?p=69969 As a thoughtful employer, you may provide your employees with facilities, benefits, or expenses in addition to their salary. Lots of them are in HMRC’s ‘taxable’ category. Form P11D is the way you must report the cash value of these expenses and benefits to HMRC. Then the tax office will decide how much income tax […]

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]]> https://www.freshbooks.com/blog/p11d-form/feed 0 What Is a P60 Form or ‘End of Year Certificate’ in the UK? https://www.freshbooks.com/blog/p60-end-of-year-certificate https://www.freshbooks.com/blog/p60-end-of-year-certificate#respond Fri, 25 Feb 2022 18:53:21 +0000 https://www.freshbooks.com/blog/?p=69961 As part of the PAYE scheme, all UK employees must get a P60 at the end of each tax year. This ‘End of Year Certificate’ is a summary of all their pay and total tax deductions for that tax year. But what does this mean for you as an employer?   Don’t Worry, a P60 […]

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]]> https://www.freshbooks.com/blog/p60-end-of-year-certificate/feed 0 What Is a P45 Form in the UK and Why Does It Matter? https://www.freshbooks.com/blog/p45-form https://www.freshbooks.com/blog/p45-form#respond Fri, 25 Feb 2022 18:49:25 +0000 https://www.freshbooks.com/blog/?p=69954 Whenever an employee leaves your business, you need to complete a P45. This is a legal requirement, so let’s make sure you’ve got all the details you need to be fully compliant.   What Is a P45 Form The title of the P45 form is “Details of employee leaving work”. It’s an integral part of […]

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]]> https://www.freshbooks.com/blog/p45-form/feed 0 Form 1040x: How to File an Amended Federal Income Tax Return https://www.freshbooks.com/blog/form-1040x https://www.freshbooks.com/blog/form-1040x#respond Mon, 07 Feb 2022 21:21:37 +0000 https://www.freshbooks.com/blog/?p=69650 Tax preparation is arduous for business owners and mistakes happen—even on tax returns. If you realized you made a mistake on your tax return for this year or previous tax years, you don’t have to file a whole new return or worry about an IRS audit. You don’t have to worry about filing a bunch […]

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]]> https://www.freshbooks.com/blog/form-1040x/feed 0 Why Is February the Perfect Time for Canadians to Switch to FreshBooks? https://www.freshbooks.com/blog/why-is-february-the-perfect-time-for-canadians-to-switch-to-freshbooks https://www.freshbooks.com/blog/why-is-february-the-perfect-time-for-canadians-to-switch-to-freshbooks#respond Thu, 03 Feb 2022 21:19:46 +0000 https://www.freshbooks.com/blog/?p=69529 Wondering when the best time to change your accounting software is? Perhaps your business is outgrowing your current accounting process, and you need to have a hard look at tools that can help you organize more and spend less time doing so. Maybe you’re using software that performs basic accounting functions, but you’re starting to […]

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