As any business owner is well aware, paying business taxes is a year-round task. What’s more, the IRS tax code is a labyrinth of rules and regulations. Even the smartest business owner can become overwhelmed when it comes to the nitty-gritty details of filing business taxes in Hayward, CA. Before you submit your annual tax forms, it’s essential to be absolutely clear on which taxes you must pay and how to pay them.
With that in mind, here are a few tips and tricks to help ease the burden of your annual returns.
(Almost) Everyone Files Income Tax
With the exception of formal partnerships, all businesses must file an income tax return. Partnerships file an information return.
The Tax That’s Pay-As-You-Go
Businesses, especially those with employees, should focus on paying federal income tax on a “pay-as-you-go” basis. Those businesses who fall behind on paying their federal taxes will be made to pay out an estimated fee when their return is filed.
Businesses with employees are most often required to pay Social Security and Medicare taxes, federal income tax withholding fees and the federal unemployment tax.
The Freelancer’s Tax
Self-employed individuals aren’t free from business taxes. If you make more than $400 or you work for a religious organization that has opted out of Social Security and Medicare payments, then you’re likely going to have to pay a self-employment tax.
The IRS does make special exceptions to the self-employment tax for “aliens, fishing crew members, notary public, state or local government employees, foreign government or international organization employees, etc.” If you’re unsure whether you fall into one of those categories, be sure to consult a tax professional.
Don’t Wait Until the End of the Year
Filing business taxes in Hayward, CA is a year-round exercise. No business owner wants to get stuck with a huge bill when their annual return is submitted. That’s why it’s vital to stay on top of your taxes throughout the year.
When Do I have to Pay an Excise Tax?
Companies that create or sell specific products, use various kinds of equipment, maintain particular facilities or receive payment for certain services may be forced to pay out an excise tax. Form 720 is used to report federal excise taxes; this broad-ranging form encompasses:
- Environmental taxes
- Fuel taxes
- Air transport taxes
- Communication taxes
- Retail sales taxes on specific heavy machinery
The Smartest Thing You Can Do for Your Business
When it comes right down to it, filing business taxes in Hayward, CA is extremely complex. Businesses are compelled to sort through numerous confusing forms and make sense of a whole vocabulary of professional jargon. Unfortunately, information will only take you so far; to ensure that your interests are covered, you need the help of talented professionals who are intimately familiar with the tax code.
That’s why savvy business owners call on Menjivar & Company CPAs, Inc. to ensure their company’s financial interests are taken care of. When you need the help of the best in the business, you need Menjivar & Company CPAs, Inc. Visit our website today to schedule your appointment.
Categorised in: Tax Preparation