Fraternity-Testvériség, 1964 (42. évfolyam, 1-12. szám)
1964-02-01 / 2. szám
4 FRATERNITY PROBLEMS ABOUT SOCIAL SECURITY Question: How much do I deduct from my employee’s wages for social security? He works for me part-time in my business. Answer: You deduct 3-5/8 percent of his wages. Add an equal amount to it and send it to the District Director of Internal Revenue at the end of each calendar quarter along with your completed Form 941. Question: I hired two employees recently for my business, which is open during the spring and summer seasons. They do not have social security account numbers. How can they get the numbers? Answer: Tell them to get in touch with the nearest Social Security office right away to get a number. You have to have their numbers when you file the quarterly tax returns with Internal Revenue. If you do not have their numbers by the time you file your Form 941, put their mailing addresses on the form. Question: How do you report your income for social security if you have opened a business — I had always worked for someone else and now I am working for myself? Answer: You do this by filling out a Schedule C (Profit or Loss from Business or Profession) as an attachment to your Federal income tax return. You should be careful to show all your receipts from your business, deduct all the allowable business expenses and depreciation generally found in your particular type of business and come up with your net earnings or profit. You should file your returns as soon as possible after the close of the tax year but not later than April 15. Question: What is the deadline for self-employed persons to file their self-employment income tax returns? Answer: The due date for these returns is the same as the due date of U. S. income tax returns. They may be filed between January 1 and April 15 of each year for the previous calendar year. The deadline is April 15. Question: I am filing my self-employment return for the first time. What business expenses should I show on the return? Answer: You should show all the allowable business expenses attributable to your particular trade or business. Records should be kept listing all the various expenses incurred by you during the period covered by the return. It is important that you correctly complete all the items called for on Schedule C (Profit or Loss from Trade or Business) which is the form used for reporting your self-employment income. Question: Is there any deadline for filing self-employment returns which are more than several years overdue? Answer: There is a deadline or Statute of Limitations. This means that self-employment returns for a particular year must be filed not later than 3 years, 3 months and 15 days after the year in which profits were earned. For example, the last date to get credit for work done in 1959 would be April 15, 1963. You can also file now for net earnings in years after 1959, but it is too late to file for 1958 or earlier.
