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Tax Season Payroll Tips for Employers

Tax Season Payroll Tips for Employers

Calling all employers! Get ready for this tax season with FORMost’s services.

Tax season is on its way and coming sooner than we think! If you are an employer, you know that you have some accounting to do early next year. With all the deadlines approaching, it can be easy to get a little frazzled. However, with the right knowledge and a skilled team working with you, you can have a smooth-sailing tax season. Check out these payroll tips for employers.

Ensure IRS-Compliance

Employers need to first ensure that all their employees are IRS-compliant. Your tax forms concerning them will be meaningless and out of bounds with the law without this compliance. Make sure they each have an EIN (employer identification number) and proper classification.

Check for Data Accuracy

When filling out your W2 and other tax forms, it can be easy to make mistakes. Unfortunately, careless mistakes do happen, and businesses suffer penalties every year. These mishaps include easy-to-fix issues like misspelled names, checked boxes that shouldn’t be checked, and transposed numbers. Review your data carefully before submitting the forms.

Prepare Your Documents

Understand all the tasks you need to accomplish for tax season payroll as an employer. In this role, you are responsible to calculate federal and state income tax, Social Security, unemployment, and Medicare for the prior year. 

File W2s before Business Taxes

As mentioned, businesses typically have numerous deadlines to deal with at the beginning of every year. Accounting experts recommend filing your W2, 941, 940, and 1099 forms if applicable first before dealing with business taxes, since these forms have strict deadlines with no extensions and undesirable penalties if missed.

Calculate Payroll Write-Offs

Meanwhile, you’ll also need to calculate payroll expense write-offs, which qualify your tax deductions. These expenses include:

  • Wages that qualify as an ordinary, necessary business expense, such as office supplies.
  • Contributions to Medicare, Social Security, and unemployment
  • Commissions and bonuses
  • Cash awards
  • Paid vacation and sick days
  • Travel expenses
  • Contracts over $600

Keep Appropriate Records

According to the IRS law, you will need to safely store your tax records for a certain amount of time. Employers should keep tax records for three years and employment records for four years. With these records on hand, you’ll be prepared if the IRS or your state performs an audit on your company. To help you with every step of the process, from getting the right forms to mailing them on time to keeping them secure, FORMost Graphic Communications is here to help!

Trust FORMost Graphic Communications for Print and Marketing Needs Today!

FORMost Graphic Communications proudly provides high-quality print and marketing solutions that produce results for your business. Since 1985, we have been providing an array of services for both national and international clients across a wide variety of industries, including all levels of government. As a privately-held company based in the Washington DC area, we are dedicated to providing exceptional services and products to each of our clients’ unique marketing needs. To learn more about our products and services for your marketing and print needs, contact us today at 301-424-4242, or visit us on Facebook, Twitter, or Linkedin for more information.

This entry was posted on Tuesday, November 24th, 2020 at 3:48 pm. Both comments and pings are currently closed.