Small Business Accounting - Starting a new business is an exciting, but busy time with so
much to be done and so little time to do it in. And, if you expect to have
employees, there are a variety of federal and state forms and applications that
will need to be completed to get your business up and running. That's where a
tax professional can help.
Employer Identification Number (EIN)
Securing an Employer Identification
Number (also known as a Federal Tax Identification Number) is the first thing
that needs to be done since many other forms require it. EINs are issued by the
IRS to employers, sole proprietors, corporations, partnerships, nonprofit
associations, trusts, estates, government agencies, certain individuals, and
other business entities for tax filing and reporting purposes.
The fastest way to apply for an EIN is
online through the IRS website or by telephone. Applying by fax and mail
generally takes one to two weeks and you can apply for one EIN per day.
State Withholding, Unemployment, and
Sales Tax
Once you have your EIN, you need to
fill out forms to establish an account with the State for payroll tax
withholding, Unemployment Insurance Registration, and sales tax collections (if
applicable).
Payroll Record Keeping
Payroll reporting and record keeping
can be very time-consuming and costly, especially if it isn't handled
correctly. Also, keep in mind, that almost all employers are required to
transmit federal payroll tax deposits electronically. Personnel files should be
kept for each employee and include an employee's employment application as well
as the following:
Form W-4 is completed by the employee
and used to calculate their federal income tax withholding. This form also
includes necessary information such as address and social security number.
Form I-9 must be completed by you, the
employer, to verify that employees are legally permitted to work in the U.S.
If you need help setting up or
completing any tax-related paperwork needed for your business, don't hesitate
to call. We're here to help!
For no obligation free consultation contact us today!
Amare
Berhie, Senior Accountant
(651)
300-4777
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