Starting and running a successful business is challenging enough. Keeping track of all the forms you need to file with the IRS/State to qualify for business tax deductions and to stay current on your corporate taxes can be overwhelming. Not to worry, we’ve highlighted the key tax forms you need to be aware of here:
Form 940 – Employer’s Annual Federal Unemployment (FUTA) Tax Return. This should be filed with the IRS annually under the Federal Unemployment Tax Act, and covers unemployment insurance and job service programs. Furthermore, the money is put into a pool to cover a percentage of unemployment benefits.
Form 941 – Employer’s Quarterly Federal Tax Return. This should be filed with the IRS each quarter, and is used to report the amounts of tax withheld from employees’ wages during the quarter. Any business with employees must file this form.
Form 944 – Employer’s Annual Federal Tax Return. This should be filed annual in replace of the quarterly form 941. Only file this return if you have been notified by the IRS in writing to file this form.
Form 2553 – Election by a Small Business Corporation. This form is for corporations who want to be taxed as an S-corporation. This election must be made by the third month of the tax year to be considered a valid election. S-corporations can pass income and losses through to their shareholders. Corporations who wish to qualify as an S-corporation should not have more than 100 shareholders.
If your business has employees, these forms must be filed:
Form W-4 – Employee’s Withholding Allowance Certificate. All new employees are required to fill out a W-4 and submit it to you. Make sure you pay close attention to your employee’s W-4’s, which will assist you in calculating how much tax to deduct from employee’s salaries.
Form W-2 – Wage and Tax Statement. At the end of the year, business owners must send a W-2 form to each employee and to the IRS. The form will show the employee how much he/she made, and the taxes withheld.
Form 1099 – Income Other Than Wages. If you paid anyone who is not an employee more than $600 during the year, you must issue them a form 1099-Misc to report the income paid during the year.
Failing to file these forms correctly and in a timely manner can result in unnecessary penalties. Stay up to date with your business taxes and make sure you are taking advantage of business deductions by working with Tax Group Center.
Failing to file these forms correctly and in a timely manner can result in unnecessary penalties. Stay up to date with your business taxes and make sure you are taking advantage of business deductions by working with Tax Group Center.
