Tax Help – Common Tax Concerns
Let's face it, taxes are complicated, particularly if you own a small business. Read below about tax concerns to avoid some of the most frequent pitfalls encountered by small business owners today.
As your business grows, you'll most likely require to hire employees. A few of the most common tax concerns involve employee tax issues. When you hire employees, you have to file timely payroll tax returns and make the required tax deposits.
Payroll taxes consist of three types of taxes:
- Income Tax-You must withhold the correct amount of income tax from each employee's paycheck all through the year.
-Social Security and Medicare Tax or FICA-You must withhold the employee's share of FICA taxes from each paycheck and you must match that amount.
-Federal Unemployment Tax or FUTA-This tax goes to the unemployment insurance system and is paid by the employer. The employee pays no part of FUTA.
At all times pay your payroll taxes in full andin timely manner. If you don't, the IRS mounts interest and large penalties. The interest and penalties can quickly grow if you do not pay them immediately. These fees can be enormous and can cause businesses to flop if they can't afford to pay the fees.
Another common tax issue is misclassifying workers. Workers are usually classified as either regular employees or independent contractors. Business owners have payroll tax withholding and reporting obligations for all of their employees; nevertheless, business owners don't need to withhold or make contributions for payroll taxes for true independent contractors.
Calling someone an independent contractor saves a lot of time complying with IRS reporting requirements. It also saves money-you don't need to make the employer's share of the FICA contributions and you will not have to pay unemployment compensation. It costs a business 20 percent to 40 percent more per worker to treat them as employees. While it might be tempting to use independent contractors rather than employees, the IRS is very aware of the benefits of misidentifying an employee as an independent contractor and will inflict stiff penalties for those who break the rule.
If you want more information on Tax Help, don't read just rehashed articles online to avoid getting ripped off. Go here: Tax Help IRS
categories: Tax Help,Help With Taxes,Income tax Help,Tax Relief Help,IRS Tax Help,Tax Debt Help,Federal Tax Help,Tax Help IRS
Related posts:
- What To Hire, Employees Or Independent Contractors?
- Ways to Figure out the Distinctions between Hourly Workers and Contractors
- Tips for contractors to manage contractor tax and other issues
- Help With Taxes
- Income Tax Help – How Tax Deductions Work
- 3 critical things to think about while selecting an umbrella company
- How the IRS Determines Worker Classification – Business Tax Relief Tips
- How contractors can find umbrella companies that definitely help
- IRS Tax Help – Home Based Business: Your Ultimate Tax Shelter
- Benefits Of Outsourcing Payroll Tasks To Independent Firms