Are you stressed about tax season? It certainly breeds its own intense levels of anxiety for many business owners. Whether you outsource your tax preparation to an accounting professional or handle your taxes in-house, it pays to be prepared. Preparing for tax season in the right way can save you valuable time and arm you with useful information that can enhance your business’s efficiency and success.
Related: 5 Top Tax Hacks for Entrepreneurs
As you embark on this annual business exercise, here are some steps you can take to streamline tax-related jitters:
Take stock of your financial situation.
Make sure the information you have about your employees and contractors is current and correct. Did anyone move, get married or have children? For employees, double-check items, such as employee name, address, social security number, lived-in and worked-in jurisdictions, paid time-off information (to determine whether appropriate withholdings or deductions were applied), status (active, terminated or on leave of absence), filing status (exempt or non-exempt), number of exemptions, year-to-date wages and taxes, and pre-tax year-to-date amounts, such as contributions to 401(k) and benefits plans.
Confirm independent contractor classifications.
The misclassification of employees as independent contractors is a major area of enforcement for government agencies. If you already work with independent contractors, evaluate current relationships since they may have changed over time (You may want to refer to the Internal Revenue We recommend you visit the following site for more complete information and related topics. Article source: https://www.entrepreneur.com/article/287721
We recommend you visit the following site for more complete information and related topics. Article source: https://www.entrepreneur.com/article/287721