3 Tax Hacks for Your Small Business
Tax Season can be overwhelming- even for the most experienced small business owner. Here are three brief tax hacks to help you save both time and money this tax season:
Review Sooner Rather than Later.
- Encourage your employees to review and update personal data, including their names and addresses now. This will cut down on the time and money you spend correcting errors on W-2s that can be easily fixed before your W-2s are generated.
- Take an inventory of what tax filings you know you will need to file this year and what information you think you will need to complete them. This will help you stay organized as you begin tackling your business’s tax filings.
- Balance every quarter’s tax returns with your liability amounts. This will ensure errors are caught and corrected early.
Tip: Don’t want to generate W-2s or deal with payroll tax headaches? Partner with a Professional Employer Organization (PEO). PEOs co-employ employees for payroll and other purposes. Modern Business Associates (MBA) is a Certified Professional Employer Organization with the IRS. The IRS does not endorse any particular certified professional employer organization. For more information on certified employer organizations go to www.IRS.gov.
Discover (or Rediscover) Tax Credits.
Small businesses leave millions of dollars on the tax table each year for the IRS. Remember: credits are dollar-for-dollar; meaning that for every dollar you spend on a qualifying tax credit, you can reduce it from your tax bill. Here are a few tax credits for which your business could potentially qualify:
- Work Opportunity Tax Credit (WOTC)- credit based on hiring from specific target groups with barriers to employment.
- Employee Retention Credit- allows businesses impacted by Hurricanes Irma, Harvey, and Maria to claim eligible wages paid to certain employees during specific times impacted by the recent hurricanes.
- Research and Development Credit- credit based on businesses’ research and development activities in a variety of industries, i.e., you don’t have to run a laboratory to qualify.
Tip: Don’t know how to claim these credits? Partner with a firm specializing in tax credits, like HIREtech. Let them do the work for you.
Don’t think you’ll be able to complete your taxes on time? Ask for an extension sooner rather than later. If approved, it will give your business more time to get its ducks in a row.
Tip: If you have any issues with the IRS, get legal and accounting advice as soon as possible to help you resolve the issues as stress-free as possible!
You can find us listed on the IRS’ website.