Small business owners have a plethora of responsibilities and tasks that they must give primary focus to each and every day. However, one such area that tends to challenge small business owners is that of understanding the small business taxes. Here at Tax Alternatives, we want to take this time to help our valued clients in the Brentwood area and surrounding towns understand the many federal taxes that can potentially apply to their small businesses.
Insight on Small Business Taxes
There are truly a variety of federal taxes that small business owners need be aware of. Depending upon the form and type of the business you own and operate, taxes to be paid and how to pay them will vary. Here are some taxes that may apply to your small business at the federal level.
- Income Taxes – With any business profits you are always faced with income taxes. To determine how income taxes are paid you must look at your business layout and structure. In the case of most small businesses, both profits and losses are typically passed on to the business owners who then report them on their own personal income tax filings. Other business types such as LLCs and S corporations file different income tax returns and handle the payment of taxes differently.
- Medicare and Social Security Taxes – All employers generally must withhold both Medicare and Social Security Taxes from all their employees’ wages and must also pay themselves, a matching amount. In addition, if an employee’s wages exceed a certain amount, then the employer must also withhold additional Medicare taxes from the employee’s compensation.
- Federal Unemployment Taxes – Separate from any federal income taxes and Social Security and Medicare taxes, each employer must also pay and report Federal Unemployment Taxes. These taxes are not deducted from employee paychecks but are paid by the employer only.
- Self-Employment Taxes – For those people who work for themselves, a self-employment tax must be paid. This tax is basically a Social Security and Medicare tax responsibility and is often filed and paid quarterly.
- Excise Taxes – What is an excise Tax? As defined by the IRS, an excise tax is a tax that is imposed on the sale of particular goods and services. It is commonly imposed on items that are sold for profit, such as alcohol, tobacco, tires, gasoline, airline tickets and large trucks to name a few.
Bottom Line
Here at Tax Alternatives, our team of highly skilled and experienced tax specialists is steadfast in their commitment to the meet the individual needs of all our valued clients. We take pride in ensuring that our clients have a full understanding of tax laws, regulations, requirements, payments, timelines, fees and penalties.
We don’t want any of our clients to be caught off guard. With that said, all small business owners need to exercise extreme focus and attention when it comes to filing and paying all the required taxes. That’s where the folks here at Tax Alternatives come in.
Mistakes made can result in costly penalties which is something we want to avoid for all our clients. If you are looking for a highly reputable team to handle all your small business taxes and filings, surely you have come to the right place. For more information on our premier tax services here at Tax Alternatives, or to schedule a free consultation, give a shout out to one of our tax consultant professionals today. We look forward to our every opportunity to serve you and to help you to ensure not only the proper and timely filing and reporting of all necessary taxes, but also in the overall success of your small business!
