Managing your employees’ payroll taxes can easily get complicated. If you’re an employer, then you know that when you pay your employees, you also need to calculate and file their local, state, and federal taxes.
Aside from that, you also need to fill up tax forms to comply with government requirements. And though mistakes are inevitable, when it comes to taxes, it can be costly. Given such, it is, therefore, an imperative that your business subscribes to payroll software that can help you make better business choices and get help with payroll taxes.
To get help in payroll tax management, it’s important to know the forms you’ll need to fill out and file.
When a new employee joins the company, you as the business owner will need to ask them to fill out both Forms 1-9 and W4. The former is a verification form for employment eligibility while the latter is a necessary form to process the payroll.
Aside from these forms, as a business owner, you will also need to manage your own tax forms. The rules are different for entrepreneurs as you will be required to file the Quarterly Taxes estimates wherein you have to fill out and file Form 1040 ES. You have to make sure that you file all these before the tax deadlines to avoid late fees.
Local and State Laws
While you get help with payroll taxes through thorough payroll tax management, you also need to pay attention to local and state tax laws. Each state has separate laws when it comes to payday schedules, state reciprocity, overtime, income taxes and more. Aside from these, you also have to be mindful of changes in tax codes as these changes all the time.
Guarantee on Tax Filing
The reason why you need a reliable and efficient payroll tax management system is that making mistakes in any of the crucial government forms can adversely affect your taxes and payroll. Not to mention the fines that can come along these mistakes.
Business owners should choose a system that can take care of the heavy lifting and also offers a guarantee that everything will be taken care of and that should there be a fault on that party, they’ll be handling the fines and penalties attached.
Payroll taxes aren’t the reason why you entered the business, so might as well get a system that will help keep payroll taxes from becoming a reason why your business goes out.