Taxes often feel like a complicated pain for all of us, but as a small business owner you have to be especially careful to make sure your payroll taxes are in order. Here’s 10 things to keep in mind:
- Small businesses are the most likely target of increased tax compliance.
- Payroll tax penalties can turn into huge tax debts.
- Not filing or paying payroll taxes can be considered a federal crime.
- Borrowing from payroll taxes is against the law.
- The IRS can come after business owners individually for payroll taxes owed.
- Professional representation is necessary if you are audited.
- You can save on employment taxes by hiring certain family members.
- Before hiring an employee, obtain a Federal Employer Identificatinon Number (FEIN).
- Federal I-9 forms verify legal status of employees.
- Every new employee needs a Federal W-4 Form.
For more payroll and payroll tax tips, follow us on Twitter for our Payroll Tip of the Day and more!