Tax Tips for Small Employers

Tax Tips for Small Employers - As a small business owner, your taxes can literally make or break you. Your income taxes can eat away as much as 25% or more of your profit margin. Being smart about filing taxes can put more money in your pocket and make your business look more profitable on paper.

Tax Tips for Small Employers

If you're a small employer, you may be able to avoid some income tax withholdings and filings. Here are some tips for filing taxes for your small business if it is structured as an S corporation, limited liability company or partnership.

Business Purchases

Wait until the end of the year to purchase office supplies and equipment so you can claim them as a tax write-off. Purchase new supplies of paper, office equipment, pens, pads and anything else your business uses at this time. It is also a great time to find sales on office chairs, desks and furniture.

Bill Clients in January

At the end of each year, defer any payments coming in for a few weeks until the new tax year starts. If you have a large payment coming in from one or two clients each quarter or bi-annually, schedule them with your taxes in mind. This can be very valuable if you receive just a few major payments from one or two clients each quarter or bi

Write Off Returns

If you return an item or receive a refund, you need to write off the amount on your taxes. The IRS considers any returns and refunds as income, so you have to deduct that amount from any other income you received. This will lower your overall taxes paid. Review your accounting software every six months to make sure that returns and refunds are accounted for properly.

Invest in Energy-Efficiency

You can save a lot of money on your taxes by seeking out energy-efficiency credits. The government rewards companies that buy green appliances with tax credits, and solar power is the biggest green solution you can use for tax credits. Check for more information about how to maximize these credits as much as you can.

Conclusion

Filing tax returns can be a complicated task. Here are some of the most important things to remember when filing your small employer taxes. We hope this information has been helpful, and please feel free to contact us if there is anything else we can do for you!

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