Common Tax Mistakes Small Businesses Make
Payroll for a small business looks a bit different than that of a large corporation. More than likely, it’s the small business owner handwriting checks each pay period for employees. There are several common mistakes small business owners make when handling payroll that can negatively affect filing taxes and tax returns. Minor mistakes don’t always lead to problems, but be wary of things like misclassifying employees and missing deadlines.
If you’re a small business owner, chances are your list of employees isn’t very long. Multiple hats are worn by a single employee, blurring the lines of what their actual job title is, or what they are classified as. Employees can have one of these two classifications: employee or independent contractor. An employee can receive benefits, overtime pay, and have taxes taken out of their paycheck. An independent contractor is expected to take care of income taxes themselves and doesn’t receive the benefits of a regular employee.
Don’t accidentally classify an independent contractor as an employee – you’ll be forced to pay back payroll taxes along with any other penalties and/or interest.
Call Layson CPA at 478-259-0523 for Your Small Business Payroll Needs!
Missing Important Deadlines
Payroll and payroll taxes aren’t always at the top of our mind when you’re running your small business, so missing the deadline for either is a mistake that could happen. First, your employees will begin to lose trust in the business and yourself if payroll isn’t submitted on time. Keep up with the frequency of scheduled payments, especially if you haven’t opted for an automatic direct deposit. Second, missing a payroll tax deadline could land you a visit from the IRS – no one wants that. Missing a tax deadline causes your company headache, late fees, and possible legal trouble. Stay ahead of the deadlines and mark your calendars!
About Layson CPA
Layson, CPA is a full-service accounting firm serving Middle Georgia businesses. We are a family-based firm dedicated to the financial success of our clients through various services such as tax preparation, tax planning, accounting, and remote CFO work. Conveniently located at 5233 Riverside Drive, Suite C, in Macon, Georgia, Layson CPA is ready to handle any of your accounting needs.