Not only are we a full-service insurance brokerage that you can count on, but we can help small businesses with tax preparation. Usually, employees look forward to tax season, but for employers, it can be a hassle to get the details just right. However, reporting taxes accurately is not something to skimp on because of the major consequences that come with it. No one wants to get in trouble with the IRS. Here are some tips that small businesses can follow to help them manage tax preparation.
Talk to a Tax Preparer Before Tax Season Hits
One way to make a tax preparer’s life easier (as well as yours) is to talk to them well before tax season hits, as well as before you start organizing your financial records and taxes. Why? A tax preparer can provide you with a system to make gathering your files more manageable. Doing so makes the tax preparation process much smoother. Here we use the Electronic Federal Tax Payment System (EFTPS) to submit your tax payments. We use this system as well to report your quarterly and annual filings as well as unemployment reports.
Using a shoebox full of receipts to record your small business’ expenses is one way to become disorganized…very quickly. The IRS accepts digital copies of your receipt. Therefore you no longer have to hold onto paper. There are many digital apps that can help you keep track of all of your expenses. For backup, you can always keep paper copies of this information at home. We suggest that you file it neatly.
Issue W2’s On Time
If there is anything that frustrates an employee, it’s not receiving their W2’s on time. January 31st is the deadline. Therefore, before this date, you want to gather vital information about your employees early. This employee information should include (but is not limited to):
- Employee names
- Employee addresses
- Social security numbers
- Total wages
- Number of Exemptions
- Pretax contributions to retirement or HSA
- Information about independent subcontractors
File on Time and Don’t Wait Until the Last Minute to Organize Your Records
Tax preparation means exactly that: you are prepared. Waiting until the last minute to organize records doesn’t help you file on time, especially if you’re responsible for paying estimated quarterly payments. Tax preparation may mean that you take an hour each week that you designated for “financial fitness.”
We understand that a lot of small businesses are busy, but that’s where we can help. Hire us to run your payroll services effectively, and have peace of mind that next year’s tax season will run smoothly.