The Business Guide To Filing Employee Taxes
As a business entrepreneur who has built your company from the ground up you may have realized that with no matter how much experience you have there is a lot to learn when running your own business on a daily basis.
When it comes to hiring employees here are challenges to face such as how many people to hire, what roles to hire for, and ho to file taxes for them. Luckily you aren’t on your own, ExpressTaxFilings is here! Today we will help you learn what mistakes to avoid when filing your taxes.
Traditional Employees Vs Independent Contractors
Traditional Employees
You need to realize when it comes to your employees, you’re responsible for paying them as well as responsible for withholding taxes from their paychecks. You need to include income, social security, and Medicare taxes and you will also calculate the amount to withhold from your employee’s W-4.
By January 31, you are required to give your employees a W-2 which lists their tax withholdings for the year so they can then file their personal income tax return with the IRS. January 31st is also the paper filing and e-filing deadline for W-2 Forms.
It is also important to know that when it comes to reporting your employee’s income taxes you have to complete Form 941, the Quarterly Federal Tax Return, four times a year. Every business entity that pays wages to an employee is required to file Form 941, the report that is used to disclose employment taxes withheld from employees.
This form is used to not only report the amount of taxes you withheld from employees, but is also used to pay the employer’s portion of social security and Medicare taxes to the IRS. Also, please be aware that the next quarterly Form 941 deadline is on October 31st.
Independent Contractors
W-2s and Form 941 applies to your traditional employees but what do you do when it comes to your independent contractors? There’s actually an entirely different set of guidelines to follow.
You do not have to withhold taxes from your independent contractor’s pay, however, if you paid your independent contractors more than $600 then you will need to file Form 1099-MISC. This form is used to report wages for services performed for your business by people not treated as its employees.
You need to send a copy of your independent contractor’s Form 1099-MISC to them by January 31st. As the employer, need to paper file it by February 28th or e-file it by March 31 to avoid facing penalties.
ExpressTaxingFilings Can Help
So what forms do you, the employer, need to file? ExpressTaxFilings can help with all your various forms and tax filing needs with an informative interview style online filing process.
Simply select the form you need to file and follow the step-by-step instructions that explain what information you need to enter and where. Plus, there are tons of innovative features to help simplify the entire process.
For example, if you have multiple W-2s to file then you can use our bulk upload feature to upload all of your employee’s information at once with our Excel template, or your own. You can also take advantage of our postal mailing feature to have us mail hard copies of your returns to any of your recipients.
Best of all, our US-based, customer support can’t be matched. Our dedicated team of filing experts is available to assist you during any step of the process us. Give us a call Monday – Friday from 9 AM to 6 PM EST at 704.684.751. We also offer live chat and 24/7 email support at support@ExpressTaxFilings.com.
