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This year, the tax filing deadline will be on April 18. Included in this deadline are those who pay self-employment taxes. If you think you’ll need an extension, you have until October 17, 2022.
Now, you probably know that the due dates for individual and business taxes can change every year. If you’ve recently become self-employed or started a business, it helps to know these deadlines, plus all types of taxes you must pay.
Speaking of paying taxes, are you sure you’re on top of your financial obligations as a business owner or independent contractor? If you’re still navigating the world of small business taxes, here’s a quick list that can help.
Income Taxes
Big or small, all businesses should file an annual income tax return. Partnerships are the exception because they file an information return. Remember that even if you own a company, you still need to file an individual income tax return.
Also, depending on your business structure and the state your company operates in, you may need to pay additional taxes.
Self-Employment Taxes
If you’re a freelancer or independent contractor, self-employment tax will apply to you. It’s a good thing because a percentage of this goes to Social Security and other benefits (e.g., Medicare).
Keep in mind that the IRS defines self-employed individuals not only as people who are in business for themselves. Partners in a partnership and LLC owners also have to pay self-employment taxes.
Estimated Taxes
Taxes for small businesses can be complicated, especially for owners. If you’re a new business owner, don’t forget that you’re not an employee anymore.
No one withholds income tax from you, but that doesn’t mean you’re saving money on taxes. When filing taxes, you must include the funds that weren’t withheld. These are called estimated taxes, paid quarterly.
Employment Taxes
Anyone who has worked as a salaried employee knows that when they receive their check, their take-home pay is what’s left after taxes.
As an employer, it’s your job to report and deposit those taxes, including federal income tax withholding, FUTA or Federal Unemployment tax, and Social Security and Medicare (FICA) taxes.
Some states also require companies with employees to pay state employment taxes. These funds cover unemployment, as well as workers’ compensation insurance.
Sales and Excise Taxes
If your business sells goods, you have to collect taxes on the sales of these items and remit them to your state.
It’s best to consult a tax professional since some states have specific tax rules about which products and services are eligible for sales taxation. You may also want to work with a tax expert if you’re still in the planning stage of launching an online business. They can help you with online customers’ sales tax and when to pay them.
Other Types of Taxes You Need to Know
For Nevada businesses, take note of gross receipts tax.
You might also want to hire a tax professional if you plan to sell business property since there are specific considerations for paying federal taxes you need to keep in mind.
As for businesses that owe federal tax and have trouble paying it off, the IRS will approve requests for installment plans as long as the owners complete the proper forms. If your company’s in a similar situation, you can consult a tax law firm like Silver Tax Group.
Are You Still Confused About Business Taxes?
Now that you know more about the types of taxes businesses must pay, do you still have questions about business taxes?
If yes, researching online can help. You can also browse our site for more information.
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