What Are Employment Taxes? - Small Business

Employment Taxes are one of business owner's tax-related responsibilities when they hire employees. If you're a business owner and have employees, you are responsible for withholding employment taxes from your employees every pay period. Employment taxes, aka, payroll taxes, include income taxes, social security taxes, Medicare taxes, and federal unemployment tax. Some states and local governments may require you to withhold state or local employment taxes. You must collect a W-4 form from each employee that you hire. Based on the information from this form, you can determine the amount of taxes to deduct from employees' ...

Overlooked Business Expenses - Tax Deductions

For small business owners, every dollar counts. While you work hard to make more profits from the business, your income and self-employment taxes can be still too high for you to afford. Carefully review your tax return and check if you've deducted all expenses qualified for deductions. Surprisingly, you may still miss a few. Here is the list of commonly overlooked business expenses. The list is not intended to be applicable to everyone. - Advertising & promotional giveaways These include flyers, catalogs, etc - Audio, videotapes and DVDs to improve business skills. - Bank service charges on business accounts Monthly charges, penalties ...

Home Office Deductions - Tax Deduction Information

When you work from home, you can get benefits from the home office deduction. Some people may think that the home office deduction will significantly increase their chance of being audited by the IRS or it's very difficult to qualify for the home office deduction guidelines. But as long as you follow the requirements and keep good records of all business-related expenses, you shouldn't be worried about being audited too much. Regular and exclusive use To get the home office deduction, you must regularly use a portion of your home exclusively for your business. The IRS doesn't specify what ...

Small Business Top Tax Questions

Basic Tax Questions That Small Business Owners Should Ask How should I keep my records? What kind of records should I keep and how long? One of the most important things in small business accounting is to keep good records. Good financial records help you calculate income and expenses, monitor financial status, and file tax returns. You may consider using business accounting software such as Intuit QuickBooks, Peachtree Complete Accounting, Microsoft Office Accounting Professional or Simply Accounting Premium. The IRS recommends that you keep your records at least four years. What expenses can I deduct and how much? A business expense ...

Types of Taxes You Pay When Running a Small Business

It's essential to understand what kinds of taxes you must pay for your small business. These are the types of taxes categorized by agencies that you pay while you run a business. Federal Taxes (The IRS collects the following taxes) - Income taxes - Self-employment taxes for the Social Security and Medicare - Employment taxes (payroll taxes): when you have employees, you, as an employer, are required to pay and/or withhold employment taxes on behalf of your employees. State Taxes - Income taxes - Employment taxes (payroll taxes) - Sales taxes on retail goods: you, as a seller, collect the taxes from your customer and pay to ...