Business owners have responsibilities to the IRS and State beyond filing their personal income taxes; they must also pay business taxes on behalf of their company. Just as individuals sometimes have difficulty paying their income taxes to the IRS/State, businesses owners, both large and small, are sometimes in need of business tax services and business tax return filing.
Here are some types of business taxes for which employers are responsible:
- Self-Employment Tax - This tax is for people who work for themselves (such as independent contractors).
- Payroll Tax – This tax is for business owners who pay employees. It is the federal tax withheld from the wages of employees that must be paid to the government.
- FICA Tax – This is the Social Security and Medicare tax that is withheld from employees. It is paid to the government along with the payroll taxes.
- Sales Tax – This is paid by retailers and sellers of tangible goods. This is usually collected at the time of the sale. People see this type of tax every day when they purchase goods.
- Estimated Tax – If you expect to owe $1,000 or more when you file, you must make quarterly estimated tax payments to cover the tax you expect to owe. Also, if you owed tax in the previous year, you are required to make estimated tax payments.
Keeping current with your business taxes is vital for any business owner. Penalties for incorrect or late filings on corporate taxes can add up quickly and put your business in jeopardy. Make sure you are working with a qualified tax advisor who provides you with high quality business tax services. If you find yourself having difficulty paying your business taxes to the IRS/State, contact Tax Group Center today, at: (877) 605-7635.