Everyone knows that both individuals and businesses must file and pay their income taxes each spring. But do you know what other taxes your business has to file and pay throughout the year? Here are 6 taxes to ensure that your company — no matter what type — is appropriately paying.
Sales Tax. Everyone has to pay sales taxes when they buy most goods, but companies may also have to collect and remit sales taxes when they sell items. Failure to get a sales tax license, report regularly, and pay what you collect could get you in serious trouble with the state you live in.
Property Tax. Own any real property? Then you likely have a property tax bill to pay, generally to the city or county in which your property resides. There are some exceptions and deals businesses can apply for, so consult with your accountant to learn more about lowering this bill.
Self-Employment Tax. Are you a sole proprietorship or LLC? Don't underestimate the cost of self-employment taxes. Filed with your personal income tax forms, this is the equivalent of FICA taxes on wage earners' paychecks. But since you are both the employer and employee, you will pay both halves of the bill, so it adds up quickly.
Excise Taxes. Excise taxes are less well-known than most other forms of business taxes. They're levied at the federal level upon certain types of consumption, such as fuel or communications. Excise taxes are reported and remitted using IRS Form 720. This is another area where a CPA with experience in business taxes can come in handy.
Payroll Tax. If you have any employees — even including yourself — you'll need to withhold and remit certain federal and state payroll taxes. These taxes consist of Federal and State income tax withheld, Medicare tax, and Social Security tax. How often to remit them depends on how much you withhold from paychecks and what your company has to kick in itself.
Gross Receipts Tax. All states have to fund their governments through taxes. So, if your state doesn't have an income or sales tax, they may have a gross receipt tax instead. Gross receipts taxes are based on business income.
Paying your business taxes in a timely and organized manner keeps your company out of legal or regulatory trouble. If you're unsure whether you're meeting all your taxation requirements, talk with an experienced CPA business tax accountant today.Share