From juggling operations to managing employees, as a business owner you likely wear many hats. Are you also in charge of managing expenses and payroll, while staying on top of paying your taxes? What happens when there's a financial struggle? It can be tempting to dip into or "borrow" from the payroll taxes you withheld, and then replace the funds as business picks up.
One of the stories we've been following in this blog is role that tax law will pay in the implementation of the Affordable Care Act (ACA). As we discussed in our April 16 post, the ACA - otherwise known as Obamacare - will affect taxes in several ways.
Employment taxes can be a big headache for businesses. After all, state and federal income tax withholding is only part of it. There is also withholding for Social Security and Medicare taxes and payments to match employee contributions.
It's been about a year now since the U.S. Supreme Court upheld the Affordable Care Act (ACA). In California and across the nation, the implementation process for health insurance reform is well underway, with full operation of the law coming on January 1, 2014. The process of implementation will involve important aspects of the federal tax code.
Small businesses are often lauded by politicians of all types for their role in role in driving the economy and creating jobs. But small employers face many practical challenges in trying to make their businesses work. Some of those are tax challenges.
Tax planning has historically involved making wise year-end choices, anticipating coming changes in the tax code. The need to be strategic about these choices has never been greater than this year, when several key tax cuts are due to expire at the end of the year.
It is very important for businesses in Southern California to file their tax returns accurately and on time with the Internal Revenue Service. If businesses have an obligation to file and fail to do so, and if the IRS is unsuccessful in procuring the return, the agency is authorized by statute to prepare returns and assess taxes against businesses on the basis of those returns.
Part of running a business in Southern California is meeting one's payroll tax obligations to the Internal Revenue Service. When times are tough, the money may not be there to satisfy one's tax bill, and that is when the IRS may take action. At first, the agency may assess penalties and interest against the debt owed, which can grow the balance substantially.
For most working Americans every penny counts -- especially during this economic recession where salaries are down but many daily expenses remain high. So for many Californians who earn a salary of $50,000 per year, an extra $20 per week actually does make a difference. That amounts to just over $1,000 per year.