Did you know that small business owners spend 32 hours a year on taxes? Even though 88% of business owners use tax preparers to handle taxes, there are still a lot of other duties to handle.
There are payroll taxes, document management, bookkeeping, and reporting to manage. This is usually a confusing nightmare for small business owners.
You can take some of the pressure off of yourself by learning how to file business taxes online. It’s a simple process that can save time and money.
Read on to discover helpful tips to file business taxes online.
1. Get Your Documents Together
Organization is everything when it comes to taxes. You should have systems in place to track your business income, expenses, and payroll.
When you approach tax deadlines, it should be easy to get your documents together. You can use accounting software to track your daily activities. You can categorize these transactions and turn them into reports.
A high level of organization allows you to take full advantage of business tax deductions. You’ll be able to lower your tax bill.
2. Know Your Filing Deadlines and Obligations
Self-employed people have to file taxes using Form 1040. Their business income and expenses are listed on Form Schedule C.
If you expect to pay more than $1,000 in taxes, you have to pay estimated quarterly taxes. Your tax deadline is April 15, unless you file for an extension.
For those with employees, you have to pay payroll taxes. Your tax filing deadline is March 31.
That’s not all. You have to submit copies of W-2 forms to the IRS by January 31. If you hired contractors, you have to submit 1099s by the same date.
Does your business have more than 50 employees? You’ll need to file Affordable Care Act forms. Employers that are self-insured have to file ACA forms with the IRS, too.
Be aware that if you miss tax deadlines, the IRS will assess penalties and interest.
3. Choose an Online Tax Filing Provider
Did you discover that you have a huge amount of paperwork to file with the IRS? You might have to file Affordable Care Act forms, file a 1099 form, and file W-2 forms online.
You need to find a provider that can help you in those areas. Your accounting software might help you in that area. You could also look for services at https://efile360.com/ and the IRS program for qualified tax filers.
It’s Easy to File Business Taxes Online
Many business owners view taxes as a cost of doing business. They’re hard to keep track of and understand. The good news is that you can file business taxes online.
The trick is to stay organized so you don’t have to dig for documents. You’re also responsible for filing business taxes and forms on time. Choose the right online tax provider for your needs to make the entire process easy.
For more business insights, check out the blog for more helpful tips today!