Small businesses have a lot to take on at times and adding tax forms to this list can be overwhelming. The forms are endless and it is often hard to tell what they mean and when you are required to fill them out. Not to mention, the terminology used can be difficult to understand and there are so many important deadlines to remember!
We want to help make this process more understandable, and help your small business be more prepared when it comes to tax forms.
Small Business Tax Forms
Having knowledge on the different types of paperwork that needs to be filed, and knowing what deductions can be applied will put your company in a better position. Knowledge of these tax forms will go a long way towards helping you stay organized and file on time.
Employees receive unemployment insurance when they are let go for reasons beyond their control. This form is needed to report your annual Federal Unemployment Tax Act (FUTA) tax. Employers pay into FUTA, and the amount you contribute depends on Form 940. This form get submitted once a year; however, you should remember that FUTA tax payments are paid quarterly: April 30, July 31, Oct. 31 and January 31.
The 941 form is used when you have employees. With this form you will provide information, like how much federal income tax and other payroll taxes you have withheld from their paychecks during each business quarter. The amount of forms you must fill out depends on how many employees you have. These forms must be submitted to the IRS every quarter.
The W-2 tax form is filled out when a new employee joins the workplace. It reports the employees’ annual wages, and the the amount of taxes withheld from their paychecks. The W-2 must be submitted by small business owners by January 31 at the latest. You must remember to send the copies to the IRS.
The employee you have hired is responsible for filling out the W-4. This informs you of how much money to withhold from your paycheck for federal taxes. Allowances for spouses or dependents may be claimed by the employee, which may lead to more taxes being withheld from their pay. This depends on if they work multiple jobs or if their spouse has a sustainable income.
Form 1040/Schedule C
Form 1040, also known as Schedule C, is used for businesses that are sole proprietorships. The purpose is to report the amount of money you made (or lost) in your business annually. Think of it like this: you use a 1099 form to report how much each of your independent contractors made and a W-2 form to report how much each of your employees made — the Schedule C form exists so that you can report how much your business made, too.
Only partnerships and limited liability companies use the 1065 form. Each year you must file this form to the IRS to report business’s income or loss to the IRS.
This tax form is used to determine the Medicare and Social Security tax that is paid by self – employed individuals. Therefore the form should be filled out and submitted by those who are self – employed.
Many business owners nowadays work remote, or from the comfort of their own home at least part time. Form 8829 allows you to deduct some of your living costs like rent, insurance, and utilities as business expenses. There are certain deductions that the IRS believes constitutes a workspace. Be sure to research these deductions so you have a full understanding of what is applicable to you and what is not.
New companies must fill out the SS-4 form. This allows you to apply for an employer identification number. The purpose of the EIN is to give employers, sole proprietors, corporations, and partnerships authentic nine – digit number that are used for filing taxes. It is used as a unique identifier for your company.
Our team can make this process more understandable for you and alleviate some of the headache that comes with these tax forms. Stay on top of your tax preparations and the rest will go smoothly!