Running a small business is usually more challenging because of the limited workforce. As a small business owner, you will be required to focus your time, energy, and talent on different tasks of the business. Hiring a team to handle the activities might not be financially sustainable, especially at the beginning stages. It, therefore, means that you will be required to take care of all the tasks yourself irrespective of the degree of expertise required. The two important things that you should learn how to do are preparation of taxes and payroll for your business. Read on to learn how you can handle taxes and payroll services for your small business.
The first step to doing taxes and payroll yourself is having an Employer Identification Number (EIN) for your business. Having an EIN is a way of informing the IRS that your business exists. With an EIN, the Federal government will be able to distinguish your business as a tax-paying entity. If you want to know the process of applying for EIN, click here for more info. now. 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.
Having a payment schedule will make the process of doing taxes and payroll much easier. 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. Now that you are aware of the dates, you should focus on getting the money ready to avoid delays. Since the preparation of taxes is a sensitive matter, most businesses usually find themselves on the wrong side of the IRS laws. Withholding the correct amount will ensure that you don’t get into problems with the IRS. With the help of the IRS Withholding Calculator or paycheck calculator, you will know the right amount to withhold.
If you want things to run smoothly in your business, you should keep all the tax and payroll records. The best way to keep your tax records is by making a pay stub. If you want to know to make a good pay stub for your business, you should click on this website now! Besides, you should have all your tax forms filed. The best way to avoid fines is paying the taxes on time.
A majority of business owners outsource payroll services to avoid doing the challenging task. Identify the right experts that will handle your payroll system smoothly and efficiently. As a small business owner, if you want to do taxes and payroll services, you should follow these useful steps.