How should you Deal with Payroll Taxes?

As tax professionals in San Antonio, we know that many of you out there find it difficult to manage payroll taxes in your company. We have also acknowledged the fact that many of you do not know the consequences of not handling them well. Here we are, to the rescue.

 

If the calculation of payroll taxes is not done properly and they are not duly paid, IRS can get you into some serious trouble.

In case of you being a business owner, you need to withhold the due taxes from every paycheck. Further you are required to remit payroll taxes to the IRS quarterly. This means that you have to do it in March, June, September, as well as December. In addition, it totally depends on you to do the calculation and acknowledge the amounts of the social security tax, Medicare and federal income tax, and this has to be withholding from the paycheck of each and every employee of the organisation. In case of you being a the business owner of a small or local business, with just a handful of employees, the same rule applies. Hiring someone for the tax services in San Antonio is hence, a good call.

Here’s what happens if you don’t pay the payroll taxes.

When you fail to remit the payroll taxes, it could cause a good amount of problems to your business. Such problems generally start with interest on back taxes and penalties, which could add up really quickly, and make it way more difficult for you to carry out the process of sorting your payments. IRS is always pretty keen when it comes to making small businesses pay their. Time would fly and you won’t even realise that, not paying the payroll taxes has lead to a huge tax debt and maybe even the loss of your business. This would make you learn that ignorance isn’t a bliss in this case.

Well, this is where we can help. With our tax services in San Antonio, we will sort it all out for you before the IRS ever gets involved. As tax professionals in San Antonio, Uhlenbrock CPA has the ability to bring your tax calculations and payments up to date. We would not only help you once, but will also make you maintain this good habit. In this way, you will be able to focus more on how to grow your business, rather than how to save it from tax penalties.

Stay away from These Common Tax Misconceptions

As one of the most successful tax professionals in San Antonio, Uhlenbrock CPA has observed some common misconceptions that business owners hold in their minds. However, as we always want our customers to be completely aware of the right and the wrong, here we are to clear a few of them.
Misconceptions related to tax can lead you to some great trouble. Now is the time, to practice your art of paying close attention.

1. The only tax-related legal obligation that I have is to prepare FORM W-4

One of the most common misconceptions that people have is that the US government would automatically deduct the appropriate tax amount from my salary. This makes them think that now they only have the responsibility of preparing FORM W-4. Although, it informs your employer about the tax amount to be deducted from your monthly salary, the actual amount you own by the end of the year maybe a bit more or less than the deducted amount. You are therefore required to fill the accurate income tax return by the end of the year. After this, IRS compares the amounts on your FORM W-4 with your tax return and decides if they will deduct additional tax money, or give a part back or maybe even all of the money that was initially held.

2. The simplified FORM 1040EZ to file for income tax can be used by everyone

Uhlenbrock CPA has been providing tax services in San Antonio for a long time now, and as the tax professionals in San Antonio, we have observed this to be another common misconception. The IRS has developed FORM 1040EZ particularly for residents of the US. Residents for tax purposes and permanent resident aliens are the other two categories who can use this form. However, if you aren’t a resident of the United States yet, or you belong to any of the other two categories, then you are allowed to file the 1040NR EZ form. This form is much more straightforward as compared to the traditional 1040NR form. It can also be filled faster. Seeking the help of a professional at a time like this is the best idea.
The best way to go about it is to hire an expert who can provide you with tax services in San Antonio. There would then be no space, for misconceptions.