It's All About Compliance
Payroll taxes are withheld based on properly completed W-4 forms by employees. New employees are reported and withholdings are a liability and are reported and remitted to the government along with the employer's portion. The timing of remittance depends upon the dollar value of the total tax liability.
Property tax is based upon the possession of assets owned by the business. It is an annual tax on the book value. Proper depreciation and amortization schedules being applied to the various classes of assets allows for the lowest possible valuation of assets upon which the tax is based.
Income Tax Information
We will help compile all the necessary information to provide to your regular tax preparer. We will also be happy to speak with them to answer any questions about the information provided. However, we do not assume any responsibility for the tax returns prepared by the tax preparer.
Sales tax is collected from customers and remitted to the government. There are several different levels to be tracked, reported, and remitted based on guidelines and due dates. The accounting system needs to be correctly set up in order to accurately and easily handle this liability.
Independent Contractors are not employees and do not receive payroll checks. However, their earnings must be reported to the federal government annually. If someone is paid as a contractor but falls under the guidelines of an employee, the employer is responsible for both the employee's and the employer's portions of the payroll taxes which should have been remitted during the year. Careful consideration must be used in determining the classification of workers.
1099-K $600 Taxable in 2023
Anyone being paid for goods or services through the internet in 2023 using platforms like PayPal, Venmo, eBay, or Etsy, to name a few, will receive a tax document if the amount is over $600 for the entire year from all customers combined. The tax document is a 1099-K. It was going to start in 2022 but on Dec 23, 2022, the IRS decided to delay it one year. Congress may make legal changes during 2023 so stay tuned to BBS for updates.