I do have one employee that I pay salary for, but they are abroad. Do I still need to account for payroll tax? If so, how do I calculate that? Any special procedures for employees abroad? It depends. Do they come to the US to work? If so, the withholdings on foreign non resident alien employees is 30%. If not, then you would not have to do payroll taxes on them.
I work from home. Do you have any particular articles on how to calculate this deduction? I live in a 250sq ft micro apartment and work from my corner standing desk. Utilities I pay are cell phone and electricity. In order to claim a home office deduction, you would have to prorate and the area would have to be exclusively used for your business. Meaning, it can't be a dining room table where you eat or the couch. It would have to be single use as an office for your business in order to claim anything. Then you would prorate the space to the expense. In other words, if you have 25Sq.ft. of space, you would deduct 10% of your expenses like electricity. As for the phone, is that business or personal? If it is shared, that would also have to be prorated.
After business expenses/deductions and paying employee salary, and I have under $400 net earnings, do I still need to pay quarterly taxes. If you are sure you will only have $400 for next year then depending on your other income it may still be a good idea. It would be $60 so any penalty would be small, but technically you should pay quarterly, but other withholdings may cover that small amount.
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