Congratulations on your small business. You have taken the risk to become your own boss with your own start up. Whether you have opened your own cafe or launched a new tech company, it was no easy task to take.
Just keep in mind that when you are your own boss you are responsible for filing your own taxes and providing forms to your employees. If you let important deadlines slip then you will have major penalties to face. Sometimes the penalties are expensive enough to sink a blossoming new business, so check out the 3 small business tax forms you need to remember for 2017.
3 Important Self Employed Tax Forms
- Form 1099-MISC
As an employer, if you hired an independent contractor and you paid $600 or more to them in wages in exchange for their services then you are responsible for issuing them Form 1099-MISC.
It’s used the report miscellaneous income, which includes payments made to subcontractors, prizes or awards, rental payments, and more. Along with providing a copy to the recipient, you must e-file a copy with the IRS.
Form 1099-MISC is due to your recipient by January 31 and must be e-filed by April 02. Your recipient needs this form to complete their individual tax return.
- Form W-2
If you have any employees, including just one, then you need to file Form W-2. Form W-2 is an annual statement filed with the Social Security Administration. It’s used to report your employee’s wages and other compensations offered throughout the tax year.
Along with filing this form you are also required to issue copies to each of your employees by January 31. It provides information on the amount of social security and Medicare tax withheld from their income, and they need it to complete their personal income tax returns.
- Form 941
Form 941 is the Employer’s Quarterly Tax Return. It’s one major form to remember because it’s actually due four times a year. You are required to file this form if you own and operate a business with employees.
As an employer, you’re responsible for withholding federal income tax, social security tax, and Medicare tax from your employee’s salary. This form makes sure that you’re doing just that and it’s used to calculate the amount of social security and Medicare tax you owe to the IRS.
The deadlines are April 30 for the first quarter, July 31 for the second quarter, October 31 for the third quarter, and January 31 for the fourth quarter.
TaxBandits Can Help
Don’t let these forms take hours to complete by hand and you don’t need to pay an expensive accountant to complete them for you. Simply use TaxBandits, the marketing leading tax filing solution to quickly e-file your forms and transmit them directly to the IRS.
We provide step-by-step instructions that guide you through the e-filing process and have a multitude of features to make the entire process incredibly convenient. For example, our bulk upload feature will allow you to upload all of your employee’s information at once. Plus, you can use our postal mailing feature to have us mail hard copies of your returns to each of your recipients.
Best of all, our outstanding, US-based support team is here to help. If you need any assistance give us a call Monday – Friday from 9 AM to 6 PM EST at 704.684.4751. We also offer live chat and 24/7 email support at support@TaxBandits.com.