Tax and Bookkeeping Help for Contractors and the Trades
Whether you run a one-truck operation or a growing crew of subcontractors, your time is best spent on the job, not sorting receipts. But uneven income, big equipment purchases and filing requirements for subcontractors make taxes for contractors more involved than most.
Raymond G. Kenney, CPA works directly with contractors and tradespeople, including general contractors, electricians, plumbers, HVAC techs, landscapers and other specialty trades. Ray helps you keep your books straight, stay ahead of tax bills and make informed decisions as your business grows.
Common Challenges and How Ray Helps
- Estimated taxes. Self-employed contractors generally need to pay quarterly estimated taxes. Ray helps you figure out what to set aside so a large bill or underpayment penalty doesn't catch you off guard.
- Vehicle and equipment deductions. Trucks, vans, tools and heavy equipment can create significant deductions, and the rules for depreciation, Section 179 and the mileage versus actual expense methods can be confusing. Ray explains your options and keeps records that hold up.
- Job costing. Knowing which jobs actually make money is key. Ray can set up your books to track materials, labor and subcontractor costs by job.
- QuickBooks. Ray can set up QuickBooks or clean up your existing file so invoices, expenses and bank feeds are categorized correctly.
- S-corp election. As profits grow, an S-corp election may reduce self-employment tax, but it adds a reasonable-salary requirement and extra filings. Ray walks through whether it makes sense for you.
- 1099s for subcontractors. Ray helps you collect W-9s during the year and prepare the 1099-NEC forms you may need to file for subcontractors.
Related Services
- Monthly bookkeeping: including job costing
- QuickBooks setup and optimization: built around how you bill and track jobs
- Bookkeeping clean-up: when your books have fallen behind
- Year-round tax planning: estimated taxes, equipment timing and entity choice
- S-corp and C-corp tax preparation: business returns for incorporated contractors
- Individual tax preparation: including Schedule C for sole proprietors
- Partnership and multi-member LLC returns: for businesses with partners
- Tax resolution: help with IRS or New York State notices
Why Work With Ray
Ray is a licensed New York CPA in practice since 2015 and a member of the AICPA and the NYSSCPA. You deal with him directly, from your first call through filing, and he’ll explain things in plain language.
Work With Ray From Anywhere
Prefer to work remotely? Ray works with clients locally and remotely across the U.S. by phone, video and email. Work with Ray from anywhere.
Frequently Asked Questions
Do I need to pay quarterly estimated taxes?
Usually, if you're self-employed and expect to owe tax when you file, because no tax is withheld from your business income. Federal estimates are generally due in April, June, September and January, and New York has its own estimated payments. A CPA can help you set the right amounts.
Do I have to send 1099s to my subcontractors?
Generally, if your business pays an unincorporated subcontractor for services above the IRS reporting threshold during the year, you need to file Form 1099-NEC. Collecting a W-9 before you pay makes year-end much easier. Ask a CPA about the current threshold and exceptions.
Should my contracting business be an S-corp?
It depends. An S-corp may reduce self-employment tax once profits are steady enough, but you have to pay yourself a reasonable salary and file a separate business return. Ray can run the numbers for your situation.
Get Started
Have questions about your situation? Talk with Ray. Monday–Friday, 9–5.