Navigating Taxes for Small Businesses: What You Need to Know
Chris Campbell, a practicing CPA, specializes in helping small businesses and individuals optimize their tax strategies. In this informative discussion, he sheds light on three crucial types of taxes that every small business owner should be aware of.
Income Taxes
Income taxes are the most common and significant taxes for businesses. They are what most people think of when it comes to taxes.
When seeking professional tax assistance, it’s typically for income tax purposes.
Sales Tax
Sales tax is often overlooked but is critical for businesses selling products.
Not all businesses are subject to sales tax, and the rules vary by state.
It’s essential to understand your state’s specific sales tax regulations, including which goods and services are taxable.
Payroll Taxes
Payroll taxes are often underestimated by new business owners.These taxes apply to W-2 employees and are typically a shared responsibility between the employer and the employee.It’s crucial to budget for payroll taxes when hiring employees, as they can add up to an additional 10% or more, depending on your location.
Compliance with payroll taxes is made easier with the assistance of payroll service providers such as ADP, Paychex, and Gusto. These companies can calculate and manage payroll taxes, ensuring that you stay in compliance with federal and state tax laws.
Remember that staying on top of these taxes is vital to avoid legal and financial consequences. If you have any questions about taxes or accounting, don’t hesitate to reach out to a professional like Chris Campbell for guidance.
