Access to a limited workforce makes it hard for small businesses to grow and thrive. As a small business owner, you need to know how to share your focus, energy, and time on different crucial aspects of the business. Hiring a team to handle the activities might not be financially sustainable, especially at the beginning stages. For that reason, even if a tax is challenging, you will be required to learn how to do it yourself. The two important things that you should learn how to do are preparation of taxes and payroll for your business. The article herein is a comprehensive guide on how to do taxes and payroll yourself.
As a small business owner, before you start preparing taxes and payroll for your team, you should apply for an Employer Identification Number. Applying for an Employer Identification Number (EIN) is one way of information the Internal Revenue Service (IRS) about the existence of your business. It is a way of protecting your business against the Federal Government that requires all businesses to be tax-compliant. Read more on this site to learn how to apply for EIN. Once you get the EIN, you should clarify if your workers are employees or independent contractors. If your workers are employees, then they will be required to fill W4 forms. W-9 forms are usually meant for independent contractors.
One way to simplify the payroll and tax preparation process is by creating a payment schedule. Some of the crucial dates that you should note are employee pay dates, tax due dates, and tax filing dates. Ensure that the payment dates are in line with the laws and legislations of the state. Always ensure that the money required is available on the two important dates. Since the preparation of taxes is a sensitive matter, most businesses usually find themselves on the wrong side of the IRS laws. One of the steps to take is withholding the right amount during payroll. With the help of the IRS Withholding Calculator or paycheck calculator, you will know the right amount to withhold.
Record keeping is a crucial task for every business owner to boost efficiency. A reliable record-keeping approach that you should consider for your business is making pay stub. On the homepage of this website, you will discover more tips for making a pay stub. The next thing is filling all the tax forms. Filing of tax forms should be done on time to avoid issues with the authorities and fines.
Since tax preparation is a complicated process; most small business owners opt for payroll services. Identify the right experts that will handle your payroll system smoothly and efficiently. With the help of these steps, you will not have to worry about hiring a professional to do your taxes and payroll.