Top Reasons to Ask the IRS for a Tax Extension
While it may seem simple, becoming a small business owner is anything but. From long hours to making very little money your first couple of years, running a small business can be complicated and overwhelming at times. One of those times comes around once a year when the taxman comes calling. In many cases, it is better to ask for a tax extension from the IRS, Internal Revenue Service, than it is to rush and do your taxes the wrong way and pay for it later. With that being said, read on below for a few of the top reasons to ask the IRS for a tax extension as a small business.
6 Extra Months to File
Applying for a tax extension gives you six months longer to get your taxes in order. This comes in handy if you are waiting on certain tax documents to come in the mail or need that extra time to get your tax deductions in order. It also gives you more time on filing your gift tax return as well.
Reduces those Pesky Late Penalties
Late penalties on taxes can make or break a small business, especially if this is your first year in operation. There are two penalties that the IRS, Internal Revenue Service, can impose on late taxes. The first is 5 percent per month on any owed taxes for filing late. The second is plus a ½ percent per month for a late payment. If you get a tax extension and have your taxes filed and turned in by Oct. 17, you can avoid that 5 percent late fee and just be stuck with the half. While it may not seem like a lot, that is a ton when it comes to owing taxes.
Of course, where there is an upside, there is a downside to filing for a tax extension as well.
Some Businesses Aren’t Eligible
Just because you file for an extension, doesn’t mean you are eligible and will be granted an extension. If you are approved, you are put in a 5-year probationary period, and if you fail to file by the April 15th deadline, the extension could be revoked, and you would end up owing the money right away.
Filing Doesn’t Mean Extra Time to Pay
Filing for an extension doesn’t mean that you have extra time to pay whatever it is determined that you owe the IRS. You will still be charged interest and the late penalty of a half a percent.
While filing for a tax extension has its pros, it can also have its cons as well. If in doubt as to which way your small business should go, it’s best to contact the professionals and ask for some expert advice. If in doubt about whether you should file taxes, it’s always best to go ahead and do so. For more information, on filing electronically, contact the professionals at Wage Filing today for help.
Top 4 Little Tax Mistakes that Will Cost You Big for Your Small Business
There isn’t a small business owner on the planet that doesn’t dread tax season. They figure that waiting until the last minute is the best idea, because, number one, they don’t want to think about it, and number two, nothing is organized and ready to file! That is your first two mistakes; you should always be organized and never wait until the last minute to file the taxes for your small business, whether online or at a brick and mortar tax agency. There are many, many mistakes that can be made when filing your taxes, read on below for the top little tax mistakes that will cost your small business big if you aren’t careful.
Trying to do it Yourself
There are very few small business owners out there who have the tax knowledge needed to do their taxes themselves. You have to remember that tax laws are changing on a yearly basis, and unless you are trained to do taxes, you can easily get confused and mess something up. If you don’t know a ton about taxes, you risk getting yourself in tons of hot water with the IRS, Internal Revenue Service, by trying to do them yourself. Be on the safe side, and have a company you trust help you do your taxes online at least.
Making Everyone an Independent Contractor
Everyone knows that to a small business; independent contractors are cheaper than hiring employees. The downfall of this is that you have to treat an independent contractor as an independent contractor. In other words, they are not on your payroll, so they decide when they work, have control over where they work, and how the work assigned is completed. If at some point, an independent contractor says you didn’t allow these things, you could have to pay the government for not collecting social security taxes and pay workman’s comp up to a certain amount as well.
You Can’t Afford to Hire Your Own Children
Of course, you can afford to hire your own kids! Make sure you pay them a reasonable wage and then you can claim it as a business expense. If you, then, in turn, have them use that money to pay for college, you can use it as a college expense on your taxes as well and earn the college tuition deductible.
Thinking Your Bookkeeper Would Never Steal
This is one of the most common tax mistakes small businesses make. It is important to have one person who writes the checks and another person who handles bookkeeping and accounts. There are many, many business owners who have lost everything because of an embezzler. Make sure to keep the two separate and you should have nothing to worry about.
These are just a few of the biggest mistakes that many small business owners make when it comes to filing taxes. Your best bet is to contact Wage Filing for more information and to file your taxes the right way this upcoming tax season.
Tips for Filing Your Taxes for the Very First Time
You’re fresh out of school and actually working for the very first time. The end of the year is here, and suddenly you are faced with filing your taxes for the very first time in your young life. Don’t worry about being intimidated by the process of filing taxes, even the most seasoned of tax filers get that flutter in their stomach when they sit down to finally do the deed of filing. Filing your taxes can be confusing, intimidating, and just downright scary. With that being said, read on below for a few tips for filing your taxes the very first time.
Get Everything Organized
While the first suggestion for first-time tax filers is not to panic, the second becomes extremely organized before you start the tax filing process. When you start working, create a tax folder. By the end of January or first of February, you should have received all of your W-2’s or 1099 forms from everyone you have worked for in the previous year. The biggest thing to remember is that the IRS is all about having all of your ducks in a row and having the proper documentation. As you receive your tax forms from the places, you worked to make sure that you put them in your tax folder, so all you have to do is pull them out when you are ready to begin filing your taxes.
Speak to Your Parent’s First
Nine times out of ten, if you are filing your tax return for the very first time, you are still a student. Before you file your taxes, you need to speak to your parent’s first. Not only can they be of invaluable help, but they may also be carrying you as a dependent or claiming some of your college expenses on their taxes as well. Making sure to talk to your parent’s first will save you both a lot of conflict with the IRS on down the road.
Don’t Put It Off to Another Day
Many new taxpayers find the process so intimidating that they continue to put it off until the last minute. Don’t let that happen to you. You need to file your taxes long before the April 15 deadline, just in case you run into problems or have problems getting an appointment to have your taxes done. If you have chosen to file online, it is possible the site will be busy or down the closer, it is to the deadline. File early, so this doesn’t happen to you!
Check for Mistakes
While you should file pretty quickly, it’s also important to not rush so much that you have a costly mistake. Take your time, gather all of the needed information, and check for mistakes before you are done.
These are only a few tips to help you get your taxes filed as a newbie to the task. Make sure to ask for help if you need it and file before the April 15 deadline to avoid late fees and penalties. For more information on filing taxes contact Wage Filing today.
The Pros and Cons of Filing Taxes Online
In today’s modern world, you no longer have to head to your local tax office and wait forever for an agent to file your taxes for you. Today, you can simply get online and with a few keystrokes and the click of a mouse, file your taxes and send them to the IRS, Internal Revenue Service, quickly and efficiently. Whether you have ever filed your taxes online or not, there are a few pros and cons to be considered before you do. With that being said, read on below for the pros and cons of filing taxes online.
If you are used to using a computer, then there is no doubt that the process of filing online is much faster than the process of going to a brick and mortar office and waiting to have it done. There is also no doubt that the IRS will receive, review, and process your return faster as well. It is possible to get a return that is filed online in 10 day’s tops, while getting a refund by mail takes at least three weeks, sometimes longer.
Con: Requires at Least Some Knowledge of Computers
No matter which site or tax software you use, if you aren’t familiar with computers, then you are going to have problems filing your taxes online. In this case, it is better to get someone to help you file online or simply go the old-fashioned route with getting your taxes done.
Pro: Is Oftentimes Free
Many tax services offer to let you file taxes online for free. It is possible, however, that some services will ask for a fee for the time it takes to prepare and check the taxes for you.
Con: Is Possible It Could Be More Expensive
Even though the e-file acceptance for the IRS is free, it is possible that whatever tax service you choose could charge a fee for doing them through their site. However, the only way around this is to do the taxes yourself and mail them in an old-fashioned way. The choice, of course, is yours.
When filing online, everything and anything you need to file your taxes is right at your fingertips. This process is more efficient that having to find each and every form before you can even get started on filing your taxes, to begin with.
Con: Can be More Difficult for Some
Learning how to navigate and use the tax software is sometimes hard for some people. It is a learning process in the beginning that not everyone picks up easily. However, if you are used to working online, you shouldn’t have much of a problem with the learning process at all.
These are just a few of the pros and cons of filing your taxes online. If you are one of those that is on the fence and trying to decide, do your research, read the pros and cons carefully and then make the right choice for you and your tax needs. Contact Wage Filing today for more information.
Time Management Tips for Small Businesses
If you are just starting out in your small business, then you already know that you are going to have to wear many hats, work long hours, and refrain from pulling out your own hair at times. What many small business owners don’t realize is that effective time management is key to making your business successful and managing your business as well. Time management should include everything from taking care of your taxes to trusting your employees if you want to get it done. With that being said, read on below for a few time management tips to keep you sane and help your business grow and succeed.
Set a Schedule that is Smart
For all of us starting out in business, the time flies each and every day. You go to work early in the morning and suddenly it’s late at night, and you feel like you have accomplished absolutely nothing. Not only do you need to set yourself up on a schedule, but you also need to make sure that the schedule you set is a smart one as well. Going from one thing to the other means that you honestly are completing nothing and will soon be stressed beyond belief. The first thing you need to do is decide what the most important job in your business is. That is the job that will be utmost in your mind and first on your schedule every morning, schedule other things around this important task and the rest will fall into place.
Use Wage Filing for Taxes
Taxes are the bane of any small business owner’s existence, especially when you are first getting started. The trick is to make sure that you are taking care of them daily and that you keep track of everything as it comes in and goes out. You don’t want to get to the end of the year and find that you don’t have near what you need to get your taxes filed and paid. That is where sites like Wage Filing come in. They are quick, easy, and organized enough that handling your taxes is a breeze.
Put Your Trust in Your People
One of the most important things you should be doing when trying to manage your small business and use effective time management is to trust your people. If you can’t trust the people you have hired to do the job you hired them for, then you need to hire different people. In any small business, you are going to have to have help. Hire people you know you can trust and then give them the jobs and the trust they deserve to get those jobs done.
These are just a few time management tips when you are starting your own business. It isn’t going to be a piece of cake, but if you manage your time the right way, you will succeed time and time again. For more information on tax filing, visit the professionals at Wage Filing today as well.
Top Tips for Hiring for Your Small Business
When you start your own small business, many times you don’t think of things such as filing your taxes at the end of the year or even the best way to hire a few people once that business grows enough for you to need some help. Filing your taxes can be made easy by using the site at Wage Filing, however, finding employees that are eager and willing to help you build your small business into a much larger one can sometimes being a daunting task. With that being said, read on below for a few tip for hiring employees to help your small business grow.
Be Clear About the Role They will Play
It is very important to be clear about the role your new employee will play in growing and developing your business. When you put a want ad up, whether it’s online or in the newspaper be sure to outline everything from the day-to-day responsibilities to whether you are looking for an independent contractor or a salaried employee. If people have a clear idea of the role they will play, you won’t have near as many applicants that aren’t suited for the job requesting interviews. This will save not only you but perspective employees time as well.
Flexibility is Key Today
In a world where working from home and setting your own hours is more than possible, it pays to be flexible when hiring employees for your business. In other words, you are going to get better applicants and more successful employees if you aren’t going to chain them to a desk from 9 to 5. Be flexible and you will find employees that are willing to go to the extreme for you and your business.
Never Stop Hiring or at Least Accepting Applications
In today’s world, you never know when an employee will be there today and gone tomorrow. Look at everyone you meet as a possible employee from now on and never, ever throw away an application. Don’t close out hiring, just because you have enough employees at the moment because you never know when you won’t and need those applications to go through once again.
Never Settle for Less than the Best
Many times, it’s just easier to hire someone that is less than right for the position because you are swamped. This is doing nothing but asking for trouble. You may think that at least having the body there to take care of the customers is better than having to do it yourself, but it isn’t. Never settle for less than the best when it comes to hiring someone that represents you, your company, and the values you keep.
These are just a few of the best tips out there for finding the right employees for your small business. Remember, to always follow the employment laws, give service with a smile, and contact Wage Filing for help with your taxes today and at the end of the year as well.
In your small business, if you have gotten to the point where you are able to hire a few employees, you want to be just and fair with them from the beginning. However, according to recent reports, many small business owners are breaking employment laws without even realizing they are breaking them. One of the best ways to ensure that at least you aren’t breaking any tax laws is to use a site like Wage Filing to take care of filing taxes and answering some tax questions. With that being said, read on below for a few of the top ways your small business might be breaking the employment laws and be none the wiser.
The Flexible Lunch Hour
While you may be trying to be nice, giving your non-exempt employees the option to skip their lunch, so that they can get out of work a little early, maybe breaking an employment law. The law is clear that everyone should take a lunch break and in most states you have to provide a lunch break no later than their fifth hour of the working day. If you are giving your employees flexible lunch hours, it is best to come up with another way of doing things.
Saying that Your Employees Are Independent Contractors
The waters are really, really murky on this law since the invention of the Internet, as it is populated with independent contractors galore. Not only is this an area ripe for a lawsuit, but it can also get you in trouble with Uncle Sam if you aren’t careful. Your employee may love the idea of being an independent contractor until they realize there is no paid leave or vacations, no insurance, and no workman’s compensation to be paid out. It’s not a sin to have independent contractors, just be sure that you are doing the right thing and staying abreast of the current laws with the IRS and any other employment laws.
Letting Employees Make the Decisions
When it comes to letting employees make the decision as to how many days a week and how many hours they can work a day, it can get really tricky. The law restricts how many hours and how much an employee can work without being paid overtime. If you are going to let your employees work their own hours keep up with how many so you don’t run into overtime laws and you should be fine.
Loans from Paychecks
Believe it or not, deducting personal loans from an employee’s paycheck is against the employment laws. If you are going to loan your employees money, set up a written agreement for them to pay you back, do not take it out of their paycheck, or you may be breaking the law.
These are just a few of the ways that you could be breaking the law when it comes to having employees in a small business. For more information on filing your taxes as a small business contact Wage Filing today.
Tips for Setting Up a Simple Accounting System for your Small Business
When it comes to running a small business, the simplest things can seem to be the hardest to get done. The one thing you don’t want to do is get behind on your bookkeeping. Getting behind on your accounting can really come back to haunt you once it’s time for tax season once again. The best thing you can do is go with a reputable company for wage filing. However, you still need to set up a simple bookkeeping system in order to make sure that you are accounting for every penny you make and spend on your business. With that being said, read on below for a few of the top tips for setting up a simple accounting system for your small business today.
Start Keeping Financial Records from Day One
It is important to start keeping track of your expenses and the money that you take in from the first day you open your business. Make sure that you record everything and know the dates that any and everything was received or spent. You might even have expenses that were taken care of before you opened for business. Make sure that you count those as well, because they will certainly help you at tax time.
Set a System in Place
One of the first things you need to do is get a concrete system in place for bookkeeping for your business. Remember, the system you use doesn’t have to be a complicated one. You could start with a manual system, but at least need to consider seriously using a computer spreadsheet at some point. They are easy to get and create with just a little bit of help. If you decide to hire an accountant, make sure that you agree on a system to be used together, so you can understand and go into check numbers when you feel the need too.
Always Budget for Taxes
Never forget that though you made a profit, not all of that money is yours. Uncle Sam has to get his part, no matter how little you made. The best way to handle taxes is opening some kind of account where you put so much of your earnings aside to pay your tax bill at the end of the year. This is extremely important if you don’t want to end up with a huge bill at the end of the year.
Claim All of Your Business Expenses
The general rule is that you can claim whatever expenses are wholly and exclusively for your business. Make sure to keep receipts for each and everything you buy for your business, whether it’s a stamp or a laptop. Not saving receipts can come back to bite you in the long run.
These are just a few tips to help you set up some kind of an accounting system when you open your small business. For more information, on filing taxes and wage filing, visit here today.
When you want to bounce back from an audit, there are some tips that you will need to keep in mind. Being audited by the IRS can be an incredibly scary situation, so it is incredibly important that you learn the best ways to proceed. By taking these points into consideration, you will have the best chance possible of surviving the audit and providing yourself the greatest opportunity to make it a footnote in your financial life as opposed to a serious hindrance. Take advantage of these tips below so that you are able to know what do once you’ve gotten audited.
Hire a tax professional
The very first thing you need to do when you realize you are being audited is reach out to a professional who can help you out. In most situations, doing things yourself is what got you audited to begin with! So if you want to be sure that you can bounce back from it, you will need to hire a professional, or better yet a team of professionals who can assist you further. By touching base with these tax professionals, you will have all that you need to bounce back from the audit. This is important whether you are doing business with a tax lawyer or an accountant. They will immediately take inventory of your audit situation and will figure out the discrepancy and see to it that you are able to protect yourself moving forward.
Get your records together
Once you have hired a professional, you will need to also be sure that you get your records together so that you can put together a case. Dealing with facts will be your most important modus operandi moving forward, so set up a system that lets you keep plenty of records and know where to find them. Make sure that you keep your records stored as both hardcopies and digital files. By having these files located in multiple locations, you will have all that you need to prove your case to the authorities.
Watch what you say at all times
Even though you should be honest during an audit or during correspondence, you should still watch everything that you say on a regular basis. Answer questions to the best of your ability but do not volunteer any information that is not directly related to a specific question being asked. By seeing to it that you know your rights and know exactly what you are dealing with, you will have the opportunity to protect yourself while still fulfilling your obligations. This is also a situation where a quality lawyer will come in handy, because they will advise you on the things that you should or should not talk about and better yet, can speak for you in these situations whenever necessary. Never withhold information when directly asked, but don’t go into great detail either. Say only the absolute minimum that is necessary.
Keep these points in mind so that you are able to do all that you can in order to deal with an audit.
Visit the website today for more information.,
While some businesses start out with a single person behind them, most people eventually wind up hiring a few employees. Of course, if you’re going to bring on employees, you’ll need to make sure you compensate them appropriately.
If you don’t know what you should pay your employees, keep on reading. You’ll be able to figure out what a fair wage looks like.
Don’t Pay More Than The Job Is Worth To You
If you’re desperately in need of extra help, then you may want to pay higher wages to attract promising candidates. If a new employee isn’t essential, however, you may want to pay a little bit less. You should think about how much you and your company will benefit from having extra people on staff.
Determine What A Job Candidate Is Worth To Your Company
When you’re figuring out what to offer someone, work to determine what they can bring to your company. Are they uniquely qualified? Do they have special skills?
If a job candidate offers something unusual, you may want to pay them a little bit more. However, if this position could be filled by a number of people, you can get away with paying a little bit less.
While you don’t want to pay your employees too much money, you don’t want to underpay your employees either. If your employees aren’t making much money at your job, they won’t value it highly. This means that they won’t give the best work that they can.
If an employee is working for minimum wage, and feels like their job has no room for growth, they have no reason to value their position. They can just get another minimum wage job somewhere else.
However, if you offer competitive wages, your employees will have every incentive to put in extra effort. They’ll want to make sure they’re keeping their employer happy. Aside from wages, you should also consider offering other benefits, such as dental, medical, etc.
Make sure you hire enough people to complete jobs appropriately. If your employees are always overworked, they may become fed up with the job, even if it pays quite well.
Figure out how many people you really need to get a job done. If you need to hire two people to get the job done, it’s better to do that and pay both of them a little bit less.
Make Sure You Meet Wage Restrictions
Look into all of the laws and requirements in your area. Make sure you’re meeting any and all wage restrictions. You may want to talk to a lawyer so that you can confirm that the wages that you’re offering align with local and national laws.
It’s important to ensure that you’re paying your employees fairly. If you don’t pay your employees well, you may wind up running into trouble later on. Take this information, and use it to make smart choices about employee payment. You’ll be able to hire excellent employees at a reasonable rate.
Wage Filing provides forms for both you and your workers. Visit the website today for more information.