Tax time can be perplexing for the average person, but for small-business owners, there’s even more to worry about. If you’re a small-business owner, you know that you are responsible for paying federal, state and local taxes, as well as staying up-to-date on everything from tax exceptions to tax incentive programs that can help your bottom line.
Staying on top of everything isn’t always easy, so Deluxe has compiled a series of informational articles that include small business tax help to help you organize your year-end finances and prepare for tax season. In addition to providing business tax forms and other products to make tax compliance easier for small businesses, Deluxe has the following suggestions for small businesses as tax season approaches:
* Max out retirement contributions. You can do this both for yourself and your employees. Start by finding out how much you can contribute each year without tax consequences to all your retirement investment accounts and employee accounts to which you make contributions. The end of the year is a perfect time to make contributions to those programs if you haven’t reached the maximum.
* The end of the year is also a good time to consider selling capital assets, like stock, if they will be taxed at a more favorable rate.
* Make sure you pay close attention to tax deadlines to avoid unnecessary fines and penalties.
* Explore small business tax credits. You may be able to earn tax credits through programs such as the Hiring Incentives to Restore Employment (HIRE) Act, which provides incentives for small businesses that are able to hire extra employees. If you are considering hiring, take a look at the guidelines for this program to determine what kind of incentives are available to you and check to see if you might stand to benefit by hiring at a certain time.
* Don’t forget travel expenses. Remember that business-related travel expenses, whether you work in an office or at home, are tax deductible. The beginning of the year is a good time to refresh yourself on what travel expenses are tax deductible and review your past year’s travel log so you have it ready when tax time rolls around.
Planning is the best way to avoid becoming overwhelmed with the complexities contained in the tax code for small businesses. By doing your homework, or enlisting a tax professional to help you, you can make sure you’re getting the most out of the dollars your business earns.
