What do Entrepreneurs Hate the Most?
A good majority of the entrepreneurs that I speak with, state that the worst things about owning their own business are marketing, growth, bookkeeping and taxes. Unfortunately, these are also the top items that are going to keep your business going.
I completely get it, you went to cosmetology, barber or massage school because that is your passion and you didn’t go to business school because you knew you didn’t like that stuff. YOU want to focus on the creative side of your business and the rest of it you would like to ignore. I would also like for you to focus on the artistic side of your business, and leave the bookkeeping and taxes to Excerebus CPA Firm.
If the plan is to do your own payroll taxes, here are a few things you should keep in mind:
- W-2 – You must include all wages, tips and other compensation that have been paid to the employee as well as the income and social security taxes withheld. This form can be processed online or sent to the Social Security Administration via the United States Postal Service. They are due to the employee and the Social Security Administration by the last day of January. a. This form must be filled in with black ink, 12 pt. Courier Font, no dollar sign or comma, only a decimal (000.00), and the form must be error free.
- Form 1099 – If you paid more than $10 in royalties or more than $600 in rent or compensation to any person that is not an employee, or they are an unincorporated business you must provide them with this form. Again, these must be provided to the individual or business by the last day of January.
- W-3 – This form must be filed with the W-2 and must equal the amounts filed on Forms 941, 943, 944 or 1040 Schedule H.
The final note is that the IRS will apply a penalty for submitting forms that cannot be scanned. Ensure that you complete the filing online or submit only those documents that are scannable.
Your lack of bookkeeping and tax preparation are what you need to be most concerned with right now. This includes ensuring you have income and expenses documented correctly, employer tax responsibilities and associated filings with the IRS. This can be seriously overwhelming, but if you have someone you trust to help you, it doesn’t have to be devastating.
Categories: Tax Information