How to Do Payroll and Taxes Yourself
Access to a limited workforce makes it hard for small businesses to grow and thrive. 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. 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 challenges tasks associated with running a business 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). Applying for an Employer Identification Number (EIN) is one way of information the Internal Revenue Service (IRS) about the existence of your business. This way, you will not have issues with the Feds. If you want to know the process of applying for EIN, click here for more info. now. Next, you need to inform the IRS if your workers are either employees or independent contractors. If your workers are employees, then they will be required to fill W4 forms. On the other hand, if the workers are independent contractors, they will need to fill W-9 forms.
One way to simplify the payroll and tax preparation process is by 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. After setting the payment dates, you should ensure that you have the money need to pay all your workers on the set date. 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. With the help of the IRS Withholding Calculator or paycheck calculator, you will know the right amount to withhold.
Keeping tax records is encouraged if you want to solve issues with the IRS fast. A reliable record-keeping approach that you should consider for your business is making 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.
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. 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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