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A Step-By-Step Guide on How to Prepare Payroll and Taxes Yourself

Running a small business is usually more challenging because of the limited workforce. If you own a small business, you will be the one to take care of all the tasks from administrative to marketing, which can be challenging. Hiring a team to handle the activities might not be financially sustainable, especially at the beginning stages. It, therefore, means that you will be required to take care of all the tasks yourself irrespective of the degree of expertise required. The two important things that you should learn how to do are preparation of taxes and payroll for your business. Read more on this page to learn how you can handle taxes and payroll services for your small business.

As a small business owner, before you start preparing taxes and payroll for your team, you should apply for an Employer Identification Number. EIN is an important number since it makes your business known to the IRS. This way, you will not have issues with the Feds. read more here on how to apply for EIN. The next step is understanding if your workers are either independent contractors or employees. If your workers are employees, then they will be required to fill W4 forms. W-9 forms are usually meant for independent contractors.

One way to simplify the payroll and tax preparation process is by creating a payment schedule. Some of the crucial dates that you should note are employee pay dates, tax due dates, and tax filing dates. Ensure that the payment dates are in line with the laws and legislations of the state. Always ensure that the money required is available on the two important dates. Paying taxes is usually a big challenge to many small business owners, and it is common for them to have issues with the IRS. Withholding the correct amount will ensure that you don’t get into problems with the IRS. If you are not sure about the amount to withhold, you should use an IRS Withholding Calculator or paycheck calculator.

If you want things to run smoothly in your business, get more info on this site to learn how to keep all the tax and payroll records. A reliable record-keeping approach that you should consider for your business is making pay stub. If you want to know to make a good pay stub for your business, you should click on this website now! Besides, you should have all your tax forms filed. Filing of tax forms should be done on time to avoid issues with the authorities and fines.

Since tax preparation is a complicated process; most small business owners opt for payroll services. Hiring payroll services will ensure that you do not make any mistake in the process and comply with all the IRS laws and guidelines. Therefore, if you want to do payroll and tax services yourself, you should use the ideas discussed in this guide.

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