It’s important to take your small business seriously and understand how tax will affect your small business whether you are planning to grow your small business to a multimillion dollar enterprise or if you are simply self-employed. Tax affects payroll and profits which is why many business owners want to manage their tax liabilities. Lobbyists are always looking to get the government to change its stance on increasing taxes for small businesses, but here are some tips that you can use to get started on taxes.
- Understand the IRS tax calendar: The IRS has a calendar where it lets small businesses and self employed individuals know what they need to plan ahead for. In the same way that loans such as cash advances have repayment due dates, the IRS expects you to know what tax information is due when.
- Be aware of receipts: This is where many small business owners and self employed individuals can become unstuck because there can be a scramble to find the necessary receipts. Whether you have a bookkeeper at hand or not, ensure that you have all of the receipts that you need for your enterprise to make paying taxes to the IRS smoother.
- Understand the Independent Contractor definition: What you might see as an independent contractor is going to be completely different to how the IRS defines this. If you work with many freelancers, alert them about how independent contractors pay tax to the IRS.
- Know about payroll tax increases: The government will be increasing payroll taxes by around 2 per cent this year. This is going to affect medium small businesses the most so start preparing for this in time for filing your small business tax return.
These tips will equip small business owners with the arsenal needed to power through 2013 as informed and tax-savvy entrepreneurs.