Small Business Tax filing – Forms that you should avoid IRS tax debt
And 'tax time again … Are you ready to take care of your taxes for small businesses? Ensure that all forms of law to send or you may be victim of a tax audit, or worse, and the IRS debt! Some forms may need to keep track of your taxes and make sure you file correctly.
Tons of documents … Go down the list of forms, you should have to file taxes, especially forms that have to do with youremployees.
W-4 Employees Withholding allowance certificate: This is obvious. Each new employee must complete this form. They must know that the status of application and number of exemptions they are entitled. This form is important because it determines the amount of taxes you get out of their control.
W-5 Earned Income Credit Advance Certificate: If you have employees eligible for the earned income credit can obtain part of their creditadvance payment when completing this form.
W-2 Wage and Tax Statement: Again, everyone knows that is the module. This is the form of an employee receives at the end of the year, showing their income and the amount was taken from their wages in taxes. As an employer you are required to ensure that the W-2 is correct and the correct amount of taxes have been removed.
940 Unemployment Federal Employer's Annual Tax Return: This is the module thatneed to complete to show how much you paid into unemployment.
941 Employers Quarterly Federal Tax Return: I need not tell you how important this is! You must submit a quarterly 941 payroll tax, without exception. This form shows how much you paid employees for the quarter and how much was withheld for taxes. You have to pay taxes on money.
1099-MISC Miscellaneous: This is your income minus deductions. It is alsoreport to all contractors who have taken this form because they are not employees.
Just in case … Make sure you have copies of these forms is for your employees and yourself. The IRS has a special interest for small firms and expects to get an error, then hit you with a debt and come after you. Do not let the IRS affect your business due to a unique shape.
You already have a copy, but just in case here is the link for the tax for the IRS employerGuide.
Now you have a smoking gun … Use it!