Category Archives: Small Business Tax

Payroll Taxes and Federal Income Tax Withholding

Employers withhold payroll taxes and income tax from employees’ pay. Employers send the amounts withheld to the federal government. Employees complete Form W-4. Employers use Form W-4 to determine how much income tax to withhold from employee pay. The Social Security tax is also called the FICA (Federal Insurance Contributions Act) tax.   Social Security tax provides the following… Read More »

IRS Raises Tangible Property Expensing Threshold to $2,500; Simplifies Filing and Recordkeeping

The Internal Revenue Service today simplified the paperwork and recordkeeping requirements for small businesses by raising from $500 to $2,500 the safe harbor threshold for deducting certain capital items. The change affects businesses that do not maintain an applicable financial statement (audited financial statement). It applies to amounts spent to acquire, produce or improve tangible… Read More »

Payments to Independent Contractors Form 1099

This article will give you the basic information needed to properly report payments to independent contractors to the IRS, Form 1099 miscellaneous filing requirements, backup withholding and how to avoid being liable for it, and CP2100 backup withholding notices for payee name, in tax for identification number, or mismatches.   What is an Independent Contractor?… Read More »

Choosing a Small Business Structure Sole Propreitorship

When starting a business, you must determine your business structure. In this webinar, we’re focusing on sole proprietorship.If you are a one-person business, you are automatically classified as a sole proprietor for Federal tax purposes unless you file Form 8832, Entity Classification Election, to request a different classification.   What is considered a business by the IRS? You… Read More »

Record keeping and Receipts Needed for Self-Employed for IRS

What Record keeping and Receipts must self-employed individuals keeps for the IRS? The next topic we need to discuss is recordkeeping. You must keep receipts, sales slips, invoices, bank deposit slips, canceled checks and other documents.These documents, either electronic or paper files, can substantiate items of income, deductions, and credits. Keeping these records will help you pay… Read More »