There are a number of forms we'll need to file quarterly, plus monthly payments to both the state of CO and the IRS. I am set up to make the monthly payments but it would be great to streamline the form submission using Turbo Tax. Thanks!
While TurboTax doesn’t offer that service you might look at Quickbooks or consult a bookkeeping service.
schedule electronic estimated taxes ahead of time on IRS.gov or EFTPS.gov, no forms are required.
Your state should have similar options.
Hi fanfare, thanks for your reply. You state that no forms are required, but that seems to directly contradict what is written on this webpage:
https://www.irs.gov/businesses/small-businesses-self-employed/employment-tax-due-dates
For example, "Generally, employers must report wages, tips and other compensation paid to an employee by filing the required Form 941, Employer’s Quarterly Federal Tax Return".
Am I missing something?
@ashleybellas wrote:
Hi fanfare, thanks for your reply. You state that no forms are required, but that seems to directly contradict what is written on this webpage:
https://www.irs.gov/businesses/small-businesses-self-employed/employment-tax-due-dates
For example, "Generally, employers must report wages, tips and other compensation paid to an employee by filing the required Form 941, Employer’s Quarterly Federal Tax Return".
Am I missing something?
In General:
If you are a business, and you have employees, then you must file either quarterly 941 or annual 944 form. And you must have a business tax number (EIN) that is different from your social security number, and you must follow a large number of other complicated rules.
However, if you are a private person just hiring a nanny, you are not a business and you do not file form 941, and you do not pay the nanny tax to the IRS on a quarterly basis. You file a schedule H with your tax return, that calculates and pays the nanny tax as part of your overall tax return.
However, Colorado seems to make it more complicated:
While I have not taken a deep dive into Colorado's tax laws, it appears that even for a nanny (household employee), you must have a state tax withholding account and remit state tax withholding quarterly. That in turn forces you to get a federal EIN and to file form 941 quarterly as well, and make quarterly federal payments. https://tax.colorado.gov/withholding-FAQ
Turbotax is not designed for quarterly tax payments. That is something included in Quickbooks, if you want online help. There are a variety of pricing options, including a Quickbooks/Turbotax bundle. However, for only one employee, it may be easier to do it yourself. I filed payroll for a small church for about 5 years, and although I used Quickbooks for the church's books, I did not pay the extra fee for payroll services and handled it myself. It wasn't that complicated.
https://quickbooks.intuit.com/pricing/
Here’s 2 articles I found. You probably already know these things. I don’t think Turbo Tax can help with filing the 941 payroll returns.
Paying household employees
Do I need to file IRS schedule H