How to Do Payroll and Taxes Yourself
It is usually more stressful to manage a small business because of the limited workforce. If you own a small business, you will be the one to take care of all the tasks from administrative to marketing, which can be challenging. Hiring an in-house team might not be a good idea since it will increase your business expense. For that reason, even if a tax is challenging, you will be required to learn how to do it yourself. One of the tasks that every small business owner should learn how to handle is the preparation of payroll and taxes. Read on to learn how you can handle taxes and payroll services for your small business.
Before you start preparing your taxes and payroll, you need to have an Employer Identification Number (EIN). EIN is an important number since it makes your business known to the IRS. This way, you will not have issues with the Feds. read more here on how to apply for EIN. Next, you need to inform the IRS if your workers are either employees or independent contractors. For your employees, you will need to fill W-4 forms. In the case of independent contractors, they will have to fill W-9 forms.
The next step is creating a payment schedule. The most important dates that must appear in your payment schedule are employee pay dates, tax payment due dates, and tax filing dates. Always have in mind the state regulations when setting the dates. 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. If you want to avoid issues with the IRS, you should withhold the correct amount. IRS Withholding Calculator or paycheck calculator can help you determine the right amount to withhold as taxes.
If you want things to run smoothly in your business, you should keep all the tax and payroll records. The most suitable technique for keeping your tax records is creating a pay stub. On the homepage of this website, you will learn a few tips for making a pay stub. Besides, you should have all your tax forms filed. Late payment usually attracts huge penalties that might cripple your business financially.
Most business owners prefer working with payroll preparation experts to avoid the daunting and stressful task. Ensure that you find the best payroll services for your small business. As a small business owner, if you want to do taxes and payroll services, you should follow these useful steps.
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