Whether you’re new to owning a business or you’re a seasoned pro, filing your business taxes can be daunting. Of course, one of the smartest moves you can make is to hire a business accountant. When you meet with your CPA, they’ll review the different types of business taxes with you. Here’s a brief overview from Martinson & Carter CPAs so you’ll have a head start on your next tax filing.
Excise taxes take different forms depending on what your company does or what it uses. Does your business manufacture and sell products or does it receive payment for specific services? Does your company use certain products, equipment, or facilities? Is your company in charge of other businesses? If you answered yes to one or more of these questions, you may have to pay excise taxes.
If you work for yourself, you need to be aware of the self-employment tax. These tax payments are essentially used to pay into the system for your Social Security and Medicare coverage – payments that an employer typically makes for its employees. If you have net earnings of $400 or more or work for an organization that’s exempted from these taxes, you can expect to pay the self-employment tax.
Estimated tax requires regular, scheduled payments on your income. These payments are made throughout the year. Some self-employed workers may be required to file (or may choose to file) estimated taxes.
Business owners who employ workers must file employee taxes. These taxes include federal income tax withholding, Medicare and Social Security taxes, and federal unemployment taxes.
In general, every business, small or large, must pay an income tax (except for partnerships). This federal tax falls under the “pay-as-you-go” category, meaning you must make payments as you earn or receive income. Should you choose to not make tax payments through withholding, or you think it will be a struggle to make payments in this way, you should consider filing estimated taxes.
Every business’s needs are different. Consulting with a business accounting firm is the best way for you to avoid headaches (and penalties) down the road. Call Martinson & Carter CPAs for help with business taxes in the Rock Hill and Fort Mill, SC area.