6 Small Business Tax Tips to Save You Money!
Hiring employees whether it’s on a full or part-time basis entails a lot of responsibility. You have to manage the taxes on the wages you pay each employee, deduct their social security and federal taxes, then you’ll need to disperse that amount to the Internal Revenue Service (IRS). Furthermore, you’ll need to record that amount on each and every employee’s paystub.
That’s a lot of managing.
When you hire an independent contractor, you don’t need to worry about that. You can pay the independent contractor everything up front without having to deal with the taxes or social security. It’s the independent contractor’s responsibility to manage those funds him or her self. So, all you have to do is issue them a check, then at the beginning of the year, instead of issuing a W2 form, you’ll give them a 1099 form only if the amount exceeds $600 or more.
- Schedule more lunch meetings.
Turn those lengthy conference calls into something that generates money! Did you know that you can write off a lunch meeting as a business expense? The more money you can deduct from your business taxes, the less you’re likely to pay the IRS.
- Deduct your mobile phone bill.
It used to be that you needed a dedicated phone line for your business. But with the constant use of smartphones and the ability to easily access your email, it’s become second nature to conduct business from your “home” phone. As a result, you can deduct the business portion of calls from your phone bill.
- Working from home?
If you’re doing any type of work that’s generating extra income, then you might qualify for a home office deduction on your annual taxes. With the convenience of technology, it can be said that it’s difficult not to work from home. Even if you’re working for someone, it’s not uncommon to manage an independent business on the side, especially with how well the eCommerce industry is going. It became most popular with eBay, but now almost anyone can start selling products and services online through different platforms that are available today.
- Organize your Money.
If you are managing your own business, it is absolutely crucial that you keep the income and expenses separate from your personal account. When tax season comes around, you will be expected to account for all of your personal expenses and income. Likewise, you’ll need to do the same for business finances. It is much easier to report these numbers if there’s a separate bank account specifically for your business. This way, all you need to do is download your bank account statements, but it’s always best to keep good bookkeeping records.
- Hire an accountant to verify your books.
As a business owner, if you’re more comfortable running the front end of your company and would rather leave the bookkeeping to someone else, then look to Success Tax Relief. We have a team of accountants, CPA’s, tax lawyers, and tax preparers on hand to assist you with your bookkeeping records. Trust the bookkeeping of your records with professionals who know the tax laws. Contact Success Tax Relief today or contact us online.