A Guide to Preparing Payroll and Taxes Yourself
It is usually more stressful to manage a small business because of the limited workforce. 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. As a small business owner, you should be prepared to take care of most of your business tasks yourself, even if they are challenging. 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.
The first step to doing taxes and payroll yourself is having an Employer Identification Number (EIN) for your business. EIN is an important number since it makes your business known to the IRS. It is a way of protecting your business against the Federal Government that requires all businesses to be tax-compliant. read more here on how to apply for EIN. Once you get the EIN, you should clarify if your workers are employees or independent contractors. W-4 are usually meant for employees. W-9 forms are usually meant for independent contractors.
The next step is creating a payment schedule. Some of the crucial dates that you should note are employee pay dates, tax due dates, and tax filing dates. Always have in mind the state regulations when setting the dates. After setting the payment dates, you should ensure that you have the money need to pay all your workers on the set date. Paying taxes is usually a big challenge to many small business owners, and it is common for them to have issues with the IRS. One of the steps to take is withholding the right amount during payroll. If you are not sure about the amount to withhold, you should use an IRS Withholding Calculator or paycheck calculator.
Record keeping is a crucial task for every business owner to boost efficiency. The most suitable technique for keeping your tax records is creating a pay stub. If you want to know to make a good pay stub for your business, you should click on this website now! 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.
Most business owners prefer working with payroll preparation experts to avoid the daunting and stressful task. Hiring payroll services will ensure that you do not make any mistake in the process and comply with all the IRS laws and guidelines. With the help of these steps, you will not have to worry about hiring a professional to do your taxes and payroll.
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