At 1-800Accountant, we help small business owners with tax preparation. Although it seems that tax season just ended, it is important to prepare for the future. Tax preparation is something every business owner should constantly keep in mind, and the 2014 tax season will approach quickly.
1-800Accountant would like to share some helpful tips for small business owners to consider as they prepare for the next tax-filing season. Deductions and submitting payroll tax information are important aspects of small business tax planning and here are some things to keep in mind concerning both tax elements for your small business.
If you are a first time business owner, there are many business related items that are categorized as deductible. Deductions reduce the taxable income on your business. You should deduct all business costs from your businesses gross income. If you take a client out to dinner or incur any other entertainment related expenses, these are all deductible.
Gas mileage or certain automotive expenses can also be written-off. Almost anything related to a business trip and travel costs are tax deductible. Office supplies and even cell phone bills fall into this category.
It is important to keep track of all receipts of each deduction in order to show proof to the IRS on the business expense. If your company offers money to charity this is also another form of money saving tax deductions to include when filing for taxes.
Double-check Payroll Reporting
A business must keep the W-2 forms of every employee on hand and report them to the IRS. Making federal tax deposits, reporting annual federal unemployment tax returns and information in regards to annual return of withheld federal income tax should all be submitted to the IRS.
Making sure that certain taxes are withheld from all employees is crucial including social security and Medicare, which all workers in the Untied States are required by law to have withheld from their paychecks. It is important to remember that the responsibility of payroll for your business does not end once paychecks are passed out to employees.
As a small business owner you need to be able to deposit all the tax dollars withheld from their paychecks, prepare reconciliation reports and file payroll tax returns.
Get Organized to Keep More of What You Earn
Overall the tax preparation for a business includes business deductions, expenses and employee wage deductions or payroll taxes. Remaining organized all year is vital to preparing a business for the next tax season. 1-800Accountant is available for tax consulting and offers tax preparation tips for all small business owners. The 2014 tax season is approaching and it is time to prepare.
For more tips on making sure that you keep more of the money you earn when it’s time to file your 2014 taxes, download a new white paper
titled What Small Businesses and Independent Contractors Must Do About Taxes AFTER April 15. It’s available now for free download on the resources page of 1-800Accountant.