Small Business

IRS Tax Tip 2020-173, December 17, 2020 Some small businesses pay employment tax quarterly while others may pay it just once a year. The IRS advises small business owners to review the rules for filing two commonly used employment tax returns. The two forms are: Form 941, Employer’s Quarterly Federal Tax Return Form 944, Employer’s …

Small businesses should make sure to use the right form when filing employment tax returns Read More »

IRS Tax Tip 2020-131, October 5, 2020 Closing a business is always a difficult decision regardless of the circumstances. With this in mind, the IRS redesigned the closing a business page of IRS.gov to help business owners navigate the federal tax steps when closing a business. Small businesses and self-employed taxpayers will find a variety of information …

Business owners should visit IRS.gov for help with tax actions when closing a business Read More »

IRS Tax Tip 2020-94, July 29, 2020 Business owners can make taxes a little easier on themselves by filing payroll and employment taxes electronically. There are several benefits to filing these forms electronically: It saves time. It’s secure and accurate. The filer gets an email to confirm the IRS received the form within 24 hours. …

Employers should consider filing payroll taxes electronically Read More »

IRS Tax Tip 2020-80, July 6, 2020 There is a new Form 1099-NEC, Nonemployee Compensation for business taxpayers who pay or receive nonemployee compensation. Starting in tax year 2020, payers must complete this form to report any payment of $600 or more to a payee. Generally, payers must file Form 1099-NEC by January 31. For 2020 tax …

How to report nonemployee compensation and backup withholding Read More »

COVID Tax Tip 2020-67, June 9, 2020 Many businesses affected by COVID-19 qualify for tax relief though credits or deferrals. Here’s a breakdown of which employers qualify for these new tax credits and the deferral of employment tax deposits and payments through December 31, 2020. Credits for paid sick and family leave Businesses and tax-exempt organizations that have less …

Who qualifies for which new employer tax credit? Read More »

COVID Tax Tip 2020-63 , May 28, 2020 Under the Families First Coronavirus Response Act, employers can grant paid leave for an employee to take care of their health needs related to COVID -19 or to care for their family members. This relief helps ensure employees are not forced to choose between being paid or …

Employers can grant paid leave for COVID-19 Read More »

COVID Tax Tip 2020-58, May 19, 2020 The employee retention credit is designed to encourage businesses to keep employees on their payroll. The amount of the credit is 50% of qualified wages paid up to an annual limit of $10,000, which equals a maximum credit amount of $5,000 for each employee for the year. Who is eligible for …

Employee retention credit available for businesses affected by COVID-19 Read More »

COVID Tax Tip 2020-53, May 7, 2020 Small and midsize employers can claim two new refundable payroll tax credits. The paid sick leave credit and the paid family leave credit are designed to immediately and fully reimburse eligible employers for the cost of providing COVID-19 related leave to their employees. Here are some key things to …

COVID-19 paid leave tax credits for small and midsize businesses Read More »

COVID Tax Tip 2020-47, April 29, 2020 Employers who are filing Form 7200, Advance Payment of Employer Credits Due to COVID-19 should read the instructions carefully and take their time when completing this form to avoid mistakes. Using a reputable tax preparer – including certified public accountants, enrolled agents or other knowledgeable tax professionals – can also help avoid errors. Mistakes …

Common errors to avoid when filing for advance payment of employer credits Read More »