Saturday, September 13, 2008

I will be starting as my new business at my primary client in two days!

I’m still figuring out state and federal requirements. Well not so much as what I need to do, but how and when…

Things I have learned:
EFTPS (eftps.gov) seems to only be for making payments. Coming from a software developer, the system design is rather poor. You make a login and then have to wait a week until they send you an initial PIN number. From there you can use their phone system. To use the internet system, you have to call a special phone number (with your employer number and a special number they give you in the letter) and do an automated registration, which will give you a temporary internet password. From there you can finally login into the website. With the initial login you can only have one bank account tied to it. To have another bank account, you have to add that account and make … another PIN number… and call the automated number to get another temporary internet password (luckily the internet site lets you use the same password, but to login you use each respective pin number).

(Edit: keep in mind that you need an EFTPS account for your business and one for yourself. The business account is tied to your EIN and the personal ones is tied to your SSN.)

Another duh moment:

– I will file as an S-Corporation. That means I will probably define half of my fee I charge as a wage to myself and the other half as a distribution to myself.
– I must make monthly estimated tax payments on the wages paid to myself (both state and federal) and file quarterly returns.
– It looks like I only make quarterly estimated tax payments on the distributions to myself. The thing is I have to make these payments as an individual.

So now I am in the process of setting up accounts with EFTPS and Illinois TaxNet. Due to how these systems were built, It will take a week or two to do that…

With Illinois TaxNet I will be able to (UI stands for unemployment Insurance):
– File UI Quarterly Contributions and Wage Report.
– Pay UI Taxes.
– View UI Account information.
– Changes to UI Account.
– Report a business acquisition to IDES.
– Close UI Account.
– Correct a UI Quarterly Report.
– Request a Letter of Clearance.
– File a State Withholding tax return.
– Pay State Withholding taxes.

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