AKRON, Ohio — After starting his own business during the pandemic, a music-loving man is now gearing up for a big change in the way small business owners accept payments.
Music is an art, according to Jeff Klemm, is part of who he is. He started his first band at age 14. When he was 20, his band released a long play.
What do you want to know
- Jeff Klemm started his first band at 14. At 20, his band released an EP
- He now performs in a band called Maid Myriad, works on solo projects and runs his own business.
- Klemm, like many business owners, uses third-party settlement tools like Venmo and Paypal for transactions.
- By 2023, people will receive a 1099-K form to ensure digital transactions are taxed appropriately
“I think music is a language, and so many people might not know how to speak it, but they can hear it and connect with it, which I think is so wonderful,” he said. -he declares.
These days, he continues to perform in a band called Maid Myriad, work on solo projects, and run his own company, called Mr. Jeff.
His activity focuses on teaching music to children. Klemm is a former music teacher and worked at Shaw JCC in Akron for three years. Her decision to start the business is partly related to the COVID-19 pandemic and the birth of her child.
“It was really just a way of connecting with the kids when they were home. I can’t do anything and it’s hard enough for adults to deal with everything that’s going on,” he said. said, “I mean, imagine the kids. So, I just wanted to be like this fun smiley face for kids during the pandemic.
Tax laws are changing and will soon impact a common tool that business owners, like Klemm, use for transactions.
“It’s really the convenience of being able to just open your phone and pay someone for something,” he said.
The tools are third-party settlement organizations like Venmo and Paypal.
In 2021, a new tax reporting requirement was enacted. The new requirement is part of the American Rescue Plan Act. By 2023, people using these organizations will receive a 1099-K form to ensure their digital transactions on these apps are taxed appropriately.
“Now anything over $600 is going to be taxed and some people who are trying to somehow dodge the tax won’t be able to do that anymore,” he said.
Klemm said he remains hopeful.
“I called my tax adviser just to make sure accepting payments through this was legal and everything was fine and she said ‘oh yeah… you claim it, as long as you keep good records, everything okay,'” Klemm said. . “So as long as you keep a good record of everything you do, like any small business should, then you’re fine.”
Klemm suggests people consult a tax professional about the changes.
For more information on Klemm’s music and/or business, click here.