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Sunday, October 19, 2014         

AKAMAI MONEY


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Keeping track of tax-payment obligations is essential

By Erika Engle

POSTED: 01:30 a.m. HST, Aug 24, 2014

~~<p><strong><span style="font-size: 12px;">QUESTION</span></strong><span style="font-size: 12px;">: I started working as a freelance bartender (sole proprietor) in January. I don't get a paycheck but am paid cash. I recently obtained a general excise tax (GET) license and am wondering, do I file back-taxes since January? Will I get into trouble if I do?</span></p>
<p class="p1"><strong>ANSWER</strong>: If you are doing business in Hawaii as a sole proprietor, then your gross business income is subject to the GET at the rate of 4 percent (4.5 percent on Oahu). You must file (monthly, quarterly, or semiannually) periodic Form G-45, and annual Form G-49, GET/Use Tax Returns to report your business income and pay GET. If you missed the deadline for filing a return and paying your taxes, you should do so as soon as possible to minimize penalties and interest charged for filing and paying late.</p>
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QUESTION: I started working as a freelance bartender (sole proprietor) in January. I don't get a paycheck but am paid cash. I recently obtained a general excise tax (GET) license and am wondering, do I file back-taxes since January? Will I get into trouble if I do?

ANSWER: If you are doing business in Hawaii as a sole proprietor, then your gross business income is subject to the GET at the rate of 4 percent (4.5 percent on Oahu). You must file (monthly, quarterly, or semiannually) periodic Form G-45, and annual Form G-49, GET/Use Tax Returns to report your business income and pay GET. If you missed the deadline for filing a return and paying your taxes, you should do so as soon as possible to minimize penalties and interest charged for filing and paying late. Login for more...



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