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TruCare Quality Home Healthcar
April 18, 2023
Question

Self employed Federal Tax Payments

  • April 18, 2023
  • 1 reply
  • 0 views

 

 

Can anyone confirm if this statement applies to Canadian self-employed people and the Federal Government?

@AB1977 

 

Estimated tax payments for a sole proprietorship are not business-related transactions.  Those payments should be made personally.  If you paid them out of your business bank account, record the payment to your Owner's Capital or Owner's Draw equity account.  IMO, to keep things cleaner, you should transfer the funds from your business account to your personal account and then make the payment to the US Treasury from your personal account.

 
 
 

1 reply

A
Alex M
April 18, 2023

Hi there TruCare Quality Home Healthcare,

 

It's vital that all your transactions are done properly so your books can be in order. QuickBooks Desktop is a great tool able to help you keep track of the financials of your business. I can point you in the right direction for assistance with the process of paying your taxes.

 

in order to know which account you should be using and the best process to pay your taxes to the federal government, I recommend speaking to your accountant or local tax expert. They'll be able to provide information on the best possible way to physically pay your taxes from the right account, as well as how best to record it in your books. If you don't have an accountant, you can find one on our Find an Accountant page.

 

If you have any other questions, feel free to reach out here.

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