Business Tax Issues of the Self-Employed
Posted on: February 17, 2012
Due to the complexity of tax law as it applies to self-employed individuals, the best tax strategy available is often to enlist the help of a qualified tax professional to handle all business tax preparation. Many self-employed taxpayers do not know how to use available tax deductions to reduce their tax liability and therefore end up with tax balances that are more than they would otherwise be required to pay. In addition, self-employed individuals have certain tax obligations which, if not met according to the strict guidelines outlined in governing tax codes, can result in unwanted consequences including interest, penalties, … Click to Read More
Business Tax Tips | Employment Taxes
Posted on: February 9, 2012
When starting or expanding a business, it is important to know how to deal with employment taxes. While they seem to be automatic when you are an employee, employment taxes are calculated and withheld by the businesses and then paid to the IRS. Here is more information on employment taxes for your business to help your business tax preparation go smoothly. What are employment taxes? Employment taxes are a variety of federal, state, and local taxes that must be withheld by business owners from the paychecks of their employees. What types of employment taxes are businesses required to pay? Employment … Click to Read More
Business Tax Records—What Records to Keep and When to Shred
Posted on: February 4, 2012
Are you never quite sure what original information to save after you file your annual tax return? In this article, we discuss what business tax documents you must keep and how long to keep them. Good bookkeeping is difficult to manage for many businesses. Let’s face it—your priority is to keep the business running from day to day. It might not seem like it but now, as you prepare to file your business taxes for 2011, is actually the perfect time to develop good record keeping habits. Keeping organized records throughout the year is vital to making sure you have … Click to Read More
Help with IRS Payroll Taxes: What They Are, How They Work
Posted on: February 3, 2012
When your new employee fills out a W-4, it affects their withholdings for Federal Income Tax, Social Security, and Medicare. What does it mean for the business owner? Businesses are required by the IRS to withhold taxes from employee wages, and then pay them directly to the IRS. This usually occurs on a quarterly basis in March, June, September, and December. This type of tax is called a Payroll Tax. In some instances, the IRS allows a business to file payroll taxes annually instead of quarterly. Payment can be made electronically or in person at an authorized financial institution. The IRS … Click to Read More
New Information about Form 1099-K
Posted on: February 2, 2012
There’s a new IRS 1099 form issued in 2012: Form 1099-K, Merchant Card and Third Party Network Payments. The 1099 is a series of IRS documents used to report non-wage income from a variety of sources like contract work, dividends, earned interest, and pension distributions. The IRS tax Form 1099-K was created as part of the Housing and Economic Recovery Act of 2008, but it did not go into effect until January 1, 2011. The idea of the law was to “improve voluntary tax compliance by business taxpayers and help the IRS determine whether their tax returns are correct and complete.” There is a … Click to Read More