KNR’s Tax Tips cont’d

These Tax Tips for Small Business will assist you in your business tax planning, and tax preparation and include everything from required information filings to your tax reduction strategy.

Tax Tips #5 Employee Taxes

As an employer, you are required to withhold taxes from your employees’ pay and make payments to the government. Part of your business tax planning should include withholding federal and state income taxes, Medicare, and social security. Employers also have to pay unemployment taxes, and match Medicare and social security withholdings. Make certain that these payments are part of your tax preparation. Because failing to meet requirements can have serious penalties, you should contact KNR’s tax accountants for detailed recommendations specific to your business.

Tax Tips #6 Business Expense Deductions

When you begin tax preparation, it’s essential you know what business expenses qualify for deduction because these are a key part of any business tax reduction strategy. Generally, expenses can be deducted if they are “ordinary and necessary” for your trade. For more information, see the IRS’s Business Expenses publication or contact KNR Services.

Tax Tips #7 Retirement Contributions

Don’t underestimate the possible tax savings a retirement plan and contributions offer to your tax reduction strategy. To find out if the savings make this a profitable option for your business, ask your KNR tax accountant.

Tax Tips #8 Giving to a Good Cause

Part of your business tax planning and tax reduction strategy should include charitable contributions. These contributions can be deducted and are a great way to help others and help yourself at the same time. There are some limitations, so be sure you understand them before taking the deduction.

Tax Tips #9 Tax Deadlines

Keep up on your tax preparations and business tax planning by being certain you know the tax deadlines that apply to you. Besides the April 15 filing date, other taxes, such as sales taxes, employee taxes, and estimated taxes can be due anywhere from weekly to quarterly, depending on a number of factors.

Tax Tips #10 IRS Audit

While KNR Services can advise you in the case of an IRS Audit, we’d rather help you prevent one. Keeping good records, careful business tax planning, taking only the appropriate deductions, and making certain your tax withholdings, filings, and payments are accurate are some of the proven methods we use to help our clients stay on the IRS’s good side.