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WHAT TAXES ARE DUE IF YOU HAVE EMPLOYEES IN YOUR SMALL BUSINESS?
Your small business must pay social security and Medicare taxes, federal income tax withholding, federal unemployment tax along with your state and local income taxes. The associated tax returns for reporting these taxes are in general filed quarterly. Your business is entrusted to pay these taxes on behalf of your employees and not only do you have penalties and interest that you will pay for not filing them timely but can also be committing a crime due to
fiduciary responsibility. You need to be sure you know what you are doing here as consequences could be costly.
WHAT RECORDS SHOULD YOU KEEP WHEN YOU START YOUR BUSINESS?
Except in a few cases, law does not require any specific kinds of records. The most important thing to ask yourself is can you go back to all of original receipts from number on your return. If you were to be asked by an IRS agent to provide all details of a certain number on your return, and you can not do that, you will be at his whim on whether he will allow that deduction. An efficient accounting system with a solid audit trail which has been reconciled is safest way to be sure you have done this.
These are just some questions you may have regarding starting your new business. If you have more, e-mail me at dianne@dgoodmancpa.com and I will help you muddle through tax and business issues you may have. After all, those of us that have our own business know it’s only way to go but getting up and running can be a bit of a challenge.
This article was intended to provide general information about starting a business. It does not contain all rules and exceptions that may apply to your situation. If you have further questions regarding starting a small business, I can be reached at www.dgoodmancpa.com.
Coming Soon - Year End Tax Planning and Preparation
CONTACT INFORMATION:
Dianne Goodman, CPA Comprehensive Small Business Solutions, PC 505 323-2307 1 866-531-3035 toll free http://www.dgoodmancpa.com
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Specializes in servicing Small Businesses and Individuals. Visit www.dgoodmancpa.com for relevant and current information on a variety of financial and tax issues focusing on small businesses and individuals or call at 1-866-531-3035.
