My husband is a dentist and he had been working as a contractor since January. He is opening his own office this September but will continue working part-time as a contractor. Can we pay estimated tax for his contractor work through the office books?
Thee office is set up as an LLC so everything will flow through the 1040 forms.
The key is how you’re QB is setup in the Company file and how you are receiving your 1099’s for contract work. If you are using your SS# on the 1099’s and an EIN# for the LLC, then QB’s will eFile based upon the EIN#. If you are using SS# for both, you can use EFTPS from QB’s.
The amount remitted in not broken down by person (SS#). But at year end when you file the W-2, W-3, 1099, 1096, the total withheld could include a 1099 for you with your SS# and amount withheld and remitted. We pay owners/partners Federal Tax through the 1099’s of the company for our clients.
The real question is how the LLC will be treated for Tax purposes since you will probably have employees in the office. It could be a Schedule “C”; 1065; 1120 or 1120S. LLC could be a corporation, partnership, or charter. Each would be setup different in the company file so as to take advantage of the interface with Turbo Tax.
If you want to make estimated tax payments on a SS#, you can establish an online EFTPS for your personal SS# and have the monies withdrawn from your LLC account. Then add the Bank transfer to QB.
You can use QB’s for both personal and business reporting, but the chart of accounts and tax pointers need to be correctly pointed to the proper reports.
