Posts tagged: Tax Basics

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 ...

Disregarded Entity Definition - What is a Disregarded Entity?

What is a disregarded entity? A disregarded entity is a business entity which is considered to be an undivided part of the owner of the entity for federal tax purposes. That is, the entity is disregarded as an entity separate from the owner. A good example of disregarded entities is a single member LLC that does not choose to be classified as a corporation for federal tax purposes. A single member limited liability company that is not classified as a corporation automatically defaults to a disregarded entity, and file federal income tax return as a sole proprietorship. How does IRS treat ...

Estimated Taxes - Questions and Answers

What Are Estimated Taxes? The US tax system requires you to pay taxes as you make money. You're required to pay taxes throughout the year as you earn income rather than waiting until April 15th. When you're employed, you don't really have to worry about this because your employers take care of it for you. They withhold taxes from your paychecks. It's more complicated when you are self-employed, when you don't have enough money withheld, or when you earn additional income in real estate, investments, alimony or other means. You may need to pay quarterly estimated taxes yourself not to pay penalty. Who ...

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 ...