tax forms
If you are an individual company and employees, which, together with wage tax forms, you are obliged to save a file? This article will answer this question.
First things first. Let's make sure that you're really employees. Take a look at Schedule C, line 26, wages. If there is an amount in the line, then you are reporting Wages and / or salaries as a business – cost, and that usually means your company employees.
Now take a look at Schedule C, line 11, Contract Work. Here you will find not report employee compensation for independent contractors. In other words, if you paid for other services for your individual entrepreneurs Companies mean that you have not paid as employees but as independent contractors. You did not withhold any income tax, social security tax or Medicare Taxes on their compensation.
It is perfectly legal for all sole employee only, independent contractors only, or a combination of both. The point here is that if you have employees, you should be reporting the salaries of Schedule C, line 26th
Also note that the Employee wages for a single company never includes payments to the owner of the sole proprietorship made. If you have money from the business for themselves, who simply regarded A withdrawal of profits for tax purposes and will never be treated as a deductible expense. Their profits are not on Schedule C as wages or reported as something else, for that matter.
So assuming you have bona fide employees and pay them as such and not all appropriate withholding Calculations, payroll tax forms, what should you used? Here they are:
1. Form 941, Employers Quarterly Federal Tax return.
This form must be filed for each quarter through the end of the month following the end of the quarter. Thus, the due dates are 30th April (1st quarter), 31 July (2nd quarter) 31. October (3rd quarter) and 31 January (4th quarter). The purpose of this form is to report each quarter, the wage bill, federal income tax withholdings employees, Social Security tax and Medicare taxes and employee payroll tax withholdings and employer Medicare tax costs.
2. Form 940, Employer Annual Federal Unemployment (FUTA) tax
This form is submitted at the end of the year and will be 31 January the following year. The purpose of this Form is the Employer's Federal Unemployment Tax Report, which will be paid 0.8% of first $ 7,000 of wages to each employee each year.
3. Form W-2 / Form W-3
These forms are also submitted each year. The purpose of Form W-2 for each employee's gross tax deductions and other payroll information Report. A copy of the W-2 employees, each at 31 January sent. A copy of all W-2's will have to the Social Security Administration on 28 February sent, together with Form W-3, the totals for the various amounts has reported on the individual W-2's.
Each state has its own employment in connection with the income tax form, please contact the departments in your state of tax revenue and unemployment for details.
Looking for more small business tax tips? For a free copy of the 25-page Special Report “How To Instantly Double Your Deductions”, visit http://www.yousaveontaxes.com
Wayne M. Davies is author of 3 ebooks on tax reduction strategies for small business owners and the self-employed.
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