Category: Bookkeeping

If you are a small business, a complex bookkeeping method designed for enterprises may cause unnecessary complications. Conversely, less robust methods of bookkeeping will not suffice for large corporations. Find out what bookkeepers do, and get an intro to double-entry bookkeeping.

Do I have the time?

Bookkeeping involves the recording, on a regular basis, of a company’s financial transactions. With proper bookkeeping, companies are able to track all information on its books to make key operating, investing, and financing decisions. A bookkeeper is responsible for identifying the accounts in which transactions should be recorded. Very small businesses may choose a simple bookkeeping system that records each financial transaction in much the same manner as a checkbook. Businesses that have more complex financial transactions usually choose to use the double-entry accounting process.

Set Aside an Emergency Fund for Major Expenses

This makes them convenient for very small businesses but too simplistic for enterprises. Both a cash and accrual basis can work with single- or double-entry bookkeeping. In general however, the single-entry method is the foundation for cash-based bookkeeping. Transactions are recorded as single entries which are either cash coming in or going out.

What is the Difference Between Bookkeeping and Accounting?

Bookkeepers regularly summarize this activity into reports that show how the business is doing. They may also perform wider tasks such as invoicing, paying bills, preparing tax returns, monitoring key performance indicators, and providing strategic advice. When you first begin the bookkeeping journey, collect everything bookkeeping for painters you have that could be relevant to establishing financial history. When you keep detailed, organized records of your business transactions, tax season suddenly won’t feel like such a daunting chore. By being proactive with your bookkeeping, you’ll save your small business time when it comes to taxes.

What is the simplest bookkeeping software?

The debit column is then totalled, and then the credit column is totalled. The two totals must agree—which is not by chance—because under the double-entry rules, whenever there is a posting, the debits of the posting equal the credits of the posting. If the two totals do not agree, an error has been made, either in the journals or during the posting process. The error must be located and rectified, and the totals of the debit column and the credit column recalculated to check for agreement before any further processing can take place.

• Specializing in a career field can help to set you apart and lead to career stability and longevity.
• We offer an accounting newsletter with timely tips for growing your business.
• The debit column is then totalled, and then the credit column is totalled.
• It doesn’t track the value of your business’s assets and liabilities as well as double-entry accounting does, though.
• Intuit Inc. does not have any responsibility for updating or revising any information presented herein.
• Some accounting software comes with invoicing features, like automated payment reminders, or you may opt for separate invoicing software.

Without it, it’s nearly impossible to produce an accurate record of financial activities that affect everything, from profit to equity to payroll, and more. The specific amount of an emergency fund may depend on the size, scope, and operational costs of a given business. Regardless, work with your bookkeeper and accountant to ensure the amount of cash left in the bank is sufficient for unexpected costs. Finding the right level of cash to be kept on hand requires a proper cash flow forecast and cash monitoring. Businesses might not want to keep all cash in the bank, as having an excessive amount of cash in the bank could mean missed opportunities in investment income. The income statement is a holistic report that shows revenue and expenses over a set period of time.

Why Is Bookkeeping Important for a Business?

Since good record keeping relies on accurate expense tracking, it’s important to monitor all transactions, keep receipts, and watch business credit card activity. Many bookkeeping software options automate the tracking process to eliminate errors. Maintaining bookkeeping tasks is essential for the stability and success of small businesses. With so many moving pieces (including assets and liabilities, and income and expenses), small business owners must stay on top of it all. Accountants rely on bookkeeping records to analyze and advise on the financial activity, health, and growth potential of a business.

The income statement

• The service you decide to use depends on the needs of your business and may include extra features such as payroll or tax documents.
• This is the perfect choice for people who work as freelancers or run a one-person shop.
• Keeping these records as current as possible is also helpful when reconciling your accounts.
• Small businesses often work with tax advisors to help prepare their tax returns, file them and make sure they’re taking advantage of small-business tax deductions.
• Whether you’re trying to determine the best accounting system for your business, learn how to read a cash flow statement, or create a chart of accounts, QuickBooks can guide you down the right path.

The service you decide to use depends on the needs of your business and may include extra features such as payroll or tax documents. While there are a myriad of courses available for bookkeeper education and training, a good deal of bookkeepers are self-taught since there are no required certifications needed to work as one. The skills needed to become a successful bookkeeper are often acquired through working in a career in the finance industry or even by balancing your personal budgets. Many bookkeepers hone and develop their expertise over time while others opt to complete seminars, read books or take online classes. Bookkeeping tasks provide the records necessary to understand a business’s finances as well as recognize any monetary issues that may need to be addressed.

Once you gather these documents, you can record the transactions using journals, ledgers, and the trial balance. The information can then be consolidated and turned into financial statements. Bookkeeping is how businesses, entrepreneurs, and decision-makers monitor a company’s overall financial health and activity. Without basic bookkeeping practices, it’s easy for financial transactions and spending activities to get out of control, which can lead to confusion, disorganization, and loss of profit. Often, office management tasks like customer billing, paying vendors and payroll are considered to be bookkeeping tasks.

Trying to juggle too many things at once only works to put your organization in danger. If you’re looking to convert from manual bookkeeping to digital, consider a staggered approach. Overhauling all at once can be overwhelming and discouraging, so it’s best to take it slow and make meaningful and intentional shifts. https://www.bookstime.com/ We offer an accounting newsletter with timely tips for growing your business. Making the decision to study can be a big step, which is why you’ll want a trusted University. We’ve pioneered distance learning for over 50 years, bringing university to you wherever you are so you can fit study around your life.…

Additionally, carbon accounting can help small businesses reduce their energy consumption and waste across operations, which can help lower operational expenses. Will Hooten is the Assistant Director of Western Region for our SSBCI program. He currently holds the Business Certified Appraiser (BCA) certification through the International Society of Business Appraisers and earned NASBITE Certified Global Business Professional (CGBP).

• These could be sales you’ve completed but not yet collected payment on or expenses you’ve made but not yet paid for.
• A major disadvantage with cash accounting is that you don’t see the full picture of your business.
• However, in an increasingly competitive hiring market, many firms are beginning to look at soft skills as valuable for new hires.
• Maggie has published articles and presented locally and nationally on topics including competitive intelligence, business valuation and business management.
• Basically, bookkeeping keeps you from spending and making money without tracking it.
• Long-term liabilities have due dates of more than one year.The term also appears in a type of business structure known as a limited liability company (LLC).

Some firms focus on a specific accounting specialization. Should I consider a niche accounting service?

It’s important to find out whether you have a business credit profile with D&B because one can be created without you knowing. For example, if you have overdue invoices, the vendor could report this to D&B establishing an unfavorable file for your business. Lenders often look at D&B reports to determine your business’s eligibility for financing. To know if you have a credit profile, visit D&B’s website and search with your company’s information to see if your business is listed.

Sports Management Agency Financial Model – Case Study

Xero is best for small businesses where multiple people need to access the accounting software. It’s also ideal for businesses that would make use of the lion’s share of its well-integrated https://www.bookstime.com/ features, and that need powerful reporting tools. Xero lets you track fixed assets, which is an unusual tool in the category of small business accounting software.

Certified Public Accountant

By 1880, the modern profession of accounting was fully formed and recognized by the Institute of Chartered Accountants in England and Wales. This institute created many of the systems by which accountants practice today. The formation of the institute occurred bookkeeping for consultants in large part due to the Industrial Revolution. Merchants not only needed to track their records but sought to avoid bankruptcy as well. Delivering results is a bit harder to give advice on, but very important to the vitality of your consulting business.

• We’ll start with a brief questionnaire to better understand the unique needs of your business.
• Whether you need (or want) a staff to help you depends on the amount of work you have to do.
• If you do the latter and have established a relationship with a payment processor, then your invoice can contain a stub explaining how the customer can return payment via credit card or bank withdrawal.
• If dealing with numbers gives you a headache, a billing specialist could be your saving grace, managing accounts and ensuring payments are collected on time.
• In her free time, you will always find her camera in her hand, and chances are you’ll spot her a mile away in her little yellow Volkswagen Beetle.
• If you successfully help your clients achieve their goals, then your consulting business will be set up for success.

In professional practice, trial balances function like test-runs for an official balance sheet. In accounting, liquidity describes the relative ease with which an asset can be sold for cash. Assets that can easily be converted into cash are known as liquid assets. Accounts receivable, securities, and money market instruments are all common examples of liquid assets. Businesses and organizations use a system of accounts known as ledgers to record their transactions. The general ledger (GL or G/L) is the master account containing all ledger accounts.

Pennsylvania SBDC State Director

• Although this may seem overwhelming, you don’t have to be a certified public accountant (CPA) to understand the accounting basics that will help with your business’s success.
• Jacob consults with entrepreneurs and small businesses from start-up to expansion to acquisition.
• It also determines your liability—whether your personal assets are on the line in case your consulting business can’t pay its debt or gets sued.
• If your business is an LLC, Partnership, or Corporation, you are required to have a separate business bank account.
• Before starting to do bookkeeping or record your business transactions, it’s best to decide on an accounting method.
• We are grateful for the many clients and friends who have made our success possible.

• Investors and analysts also look at your business’s EBITDA, which stands for earnings before interest, taxes, depreciation, and amortization.
• Whether you’re starting or thinking about a rebrand, take the time to think about your brand.
• Dr. Post’s commitment to knowledge dissemination extends to his teaching experience.
• Keeping a tight grip on finances is critical for the success of small businesses and freelancers.
• As you stand on the cusp of launching your consulting business, it’s essential to understand where you fit in the professional landscape.
• Websites, social media, and various other online presences are a great way to establish credibility in the market.

References to federal income tax withholding don’t apply to employers in American Samoa, Guam, the Commonwealth of the Northern Mariana Islands (CNMI), the U.S. Virgin Islands (USVI), and Puerto Rico, unless you have employees who are subject to U.S. income tax withholding. Contact your local tax department for information about income tax withholding. In general, you must deposit federal income tax and Additional Medicare tax withheld as well as both the employer and employee social security and Medicare taxes. Employers or business owners who withhold income taxes, Social Security taxes, and Medicare taxes from employees’ wages must file IRS Tax Form 941 every quarter. This includes firms that pay employees and owe over $1,000 in Social Security, Medicare, and income taxes in a quarter.

Federal income tax and social security and Medicare tax

However, if you made timely deposits in full payment of your taxes for the year, you may file by February 10. As with Form 941, if the due date for filing a return falls on a Saturday, Sunday, or legal holiday, you may file the return on the next business day. The purpose of Form 944 is to reduce burden on small employers by allowing them to file one return per year and in most cases pay the employment tax with the return. You might be able to file an annual federal tax return on Form 944 instead of filing quarterly Forms 941 if you expect your FICA taxes and withheld federal income tax for the year to be $1,000 or less. You must submit a written request or call the IRS to exercise this option. IRS Form 941 is a tax form from the Internal Revenue Service.

Key Changes to IRS Form 941 for the 2024 Tax Year

If you work for a firm, enter the firm’s name and the EIN of the firm. For more information about applying for a PTIN online, go to IRS.gov/PTIN. You can’t use your PTIN in place of the EIN of the tax preparation firm. Once wages and tips exceed the $200,000 withholding threshold, include all tips your employees reported during the quarter, even if you were unable to withhold the employee tax of 0.9%. Don’t include allocated tips (described in section 6 of Pub. 15) on this line. Allocated tips aren’t reportable on Form 941 and aren’t subject to withholding of federal income, social security, or Medicare tax.

Resources for Your Growing Business

Any tax payments related to Form 941 can be made through EFTPS. A valid employer identification number (EIN) is required when the return is filed or a payment is made. The employer reports the number of staff employed, wages, and taxes withheld in Part 1.

How to avoid penalties

As a business owner, you can automate your taxation by using payroll software to automate much of the process of calculating withholdings and preparing Form 941. When it comes to tax forms, the IRS anticipates the needs of different types of businesses. Are you looking to simplify the payroll tax filing process? In Part Four, the employer is asked whether they will authorize an employee, paid tax preparer, or another third party such as a Certified Public Accountant (CPA) to speak with the IRS regarding the return. If yes, the employer must provide the designee’s name, phone number, and a self-selected five-digit personal identification number so the IRS can confirm the person’s identity.

If changes in law require additional changes to Form 941, the form and/or these instructions may be revised. Prior revisions of Form 941 are available at IRS.gov/Form941 (select the link for “All Form 941 Revisions” under “Other Items You May Find Useful”). There are two deposit schedules, monthly and semi-weekly. Before the beginning of each calendar year, you must determine which of the two deposit schedules you are required to use. To determine your payment schedule, review Publication 15 for Forms 941, 944 and 945.

After you file your first Form 941, you are required to file a return for each quarter, even if you don’t have any payroll taxes to report. As the employer, you are responsible for making an additional payment to the IRS for the employer’s portion of Medicare and Social Security taxes. Employers are also required to withhold Additional Medicare Tax from wages paid in excess of $200,000 during the year in addition to any other taxes withheld and send this amount along with the other tax payments. You’re responsible for withholding federal income tax and FICA taxes from your employee’s wages and depositing them with the IRS. Form 941 was introduced by the IRS to streamline the process of collecting employment taxes.

• Along with the Form 941-X, you’ll need to pay taxes by the due date for the quarter when you discovered the error.
• For example, the due date for a July 31 payment would be Monday, Aug. 2, if July 31 falls on a Saturday that year.
• If you pay taxes with your tax return that should have been deposited, you may be subject to a penalty.
• EFTPS is a free service provided by the Department of the Treasury.
• Our full NetSuite Accounting Software review details the platform’s robust payroll reporting and planning and billing functions, including its seamless accounts receivable and payable features.

If the due date falls on a holiday or a weekend, the adjusted due date is the next business day. For example, if April 30 falls on a Saturday, the due date for an April 30 payment would be Monday, May 2. Check “yes” in Part 4 if you have https://theseattledigest.com/navigating-financial-growth-leveraging-bookkeeping-and-accounting-services-for-startups/ authorized a third party (such as a tax professional) to speak with the IRS on your behalf, and if so, provide their information. The adjusted due date will be the next business day if a due date lands on a holiday or a weekend day.

Include all tips your employees reported during the quarter, even if you were unable to withhold the employee tax of 1.45%. IRS Form 940, Form 941 and Form 944 may seem similar, but there are distinctions between them Navigating Financial Growth: Leveraging Bookkeeping and Accounting Services for Startups that employers need to take into account. Failure to do so can result in different fines and accuracy in filling out forms is mandatory to prevent inadvertent underpayment of taxes which also incurs penalties.…

When searching, you’ll want to make sure the person you find is actually a Certified Public Accountant. That means they’ve passed the test and are licensed by your state. In addition to taking the test, CPAs fulfill continuing accounting services for startups education requirements to keep their licenses active and stay up to date on all federal, state and local tax laws. If they’re going to prepare your taxes, make sure they have a Preparer Tax Identification Number (PTIN).

Best Small Business Accounting Software

Accountants who are not specialized in newly formed companies may be missing a new tax credit that can reduce payroll taxes up to $100,000. Simple and easy to use financial model for technology startups looking to project revenue and expenses. During diligence your company will probably face a lot of short turnarounds, and having an accountant supporting https://thefremontdigest.com/navigating-financial-growth-leveraging-bookkeeping-and-accounting-services-for-startups/ you during these urgent requests for financial information can be invaluable. In addition, other emergencies can require assistance from accounting. For example, human resource situations that involve terminating employees can require calculating severance and running payroll, and your accountant can help during these difficult circumstances.

When should a startup move to an outsourced accounting firm?

Calculating the correct business taxes could become difficult if you don’t maintain accurate financial accounts. Both bookkeeping and accounting are vital to every business’s success, but you may have an additional need to keep good records as a startup. If you have investors, they’ll require that you provide financial reports. And if you are trying to get a business loan, you’ll need clear and easy-to-read financials so that potential investors can make an informed decision about investing in your vision. A business accountant is your expert in managing financial information because they’re trained in the fine details of assets, debts and revenue. With a strong business accountant reviewing your finances, your company can develop informed business strategies that promote growth, and you’ll be organized year-round — not just at tax time.

benefits of effective startup accounting

Remember, though, that an accountant can be a strategic ally, navigating complex financial waters so you can focus on growth. Selecting an accountant is akin to drafting a key player onto your https://theillinois.news/navigating-financial-growth-leveraging-bookkeeping-and-accounting-services-for-startups/ startup team; they need to have the skills and agility to keep the financial play running smoothly. Here’s how to scout for the MVP (Most Valuable Professional) of your financial lineup.

Accounting for Startups — A Comprehensive Guide

However, there are several accounting software options available to help you manage your startup finances whether or not you choose to hire an accountant. Bank over Chase if you are searching for a free business checking account. The U.S. Bank Silver Business Checking Package is the bank’s optimal checking option for new and small businesses. Chase checking accounts all have monthly service fees, and you’ll need to meet certain requirements to waive them. While the accounts have similar minimum opening deposit requirements, they have different monthly service fees and limitations. When starting a business, it’s essential to open a separate business bank account, create a budget, establish a bookkeeping system, and understand your tax obligations.

AI Chat with Kruze’s Extensive Startup Accounting and Finance Knowledge Base

We recommend chatting with a CPA before you make any firm decisions. Read more here about which accounting method is right for your startup. Because your accountant will be closely tied to the best and worst of your business, make sure to prepare questions that determine exactly what kind of partner they’ll be. Ask about communication (manner and frequency) and how they’ll address complications and challenges.

• We are familiar with early-stage companies’ business models, we understand the complexities (and importance) of issues like revenue recognition, ARR, capitalized vs. non-capitalized development costs and, more.
• The best online banks have business checking accounts that permit unlimited monthly transactions.
• And while an online presence won’t guarantee an increase in exposure, not having one can have a negative impact and can discredit you to a potential client.
• However, there is a difference between a website presence and social media.
• As a general rule, you will either pay a fee per service, or an hourly rate.
• If you haven’t landed on an entity type yet, you can read more about choosing the right business entity for your startup here.

Accounting Startups Continue To Tally Up Funding

Because of this difference, the administration and financing strategies of startups and small businesses are very different. Also, if your business has complex finances, consider the price of a penalty if you make a mistake. It’s also important to compare your bank statements with the general ledger to ensure every bank transaction has a corresponding ledger entry. Organizing your expenses into specific budget categories helps you prepare for a smooth tax filing season and make more informed business decisions. We’ll take you step-by-step through the Bench income statement and how it describes the current financial state of your company. Otherwise, you risk giving your vendors free money in late payment interest.

Risk & compliance management

Knowledge empowers decision-making, and asking the right questions puts that power in your hands. As a founder or small business owner, you have clear growth goals. The most obvious benefit of hiring a CPA is that they can help you make better decisions about how to handle your money.

• For more information about the value of accounting services for your startup, contact us.
• You need a company or individual accountant who has experience working with startups.Experience counts when it comes to documenting income and business expenses in a way that startups can understand quickly.
• If your small business doesn’t include piles of paperwork and boxes full of receipts, you may want to consider handling your accounting yourself.
• In this method, you mark a transaction only when you spend or receive money.
• In most cases, a website is static and allows businesses to transmit basic, evergreen information such as phone number, services provided, and credentials.

Struggling to get timely financial statements so you can increase bonding? Come to think of it, neither does wrestling with wage and hours issues, or wishing you had better tools to interpret your WIP and real-time project profitability. And while we discussed state income tax in a previous article, you should also remember local income taxes. These are sometimes assessed in large urban areas (think New York City, San Francisco, etc.). There are 14 states that allow local governments to collect an income tax.

CPA-Construction relationships is what we are about.

If you’re looking for a good template contract for an independent contractor agreement, the plain contract is a good place to start. If you’re doing work for someone, you’re not on their payroll, and you signed a contract with them, you’re probably an independent contractor. Most people who call themselves “freelancers” are considered to be independent contractors by the IRS—the two terms accountant for independent contractor are basically interchangeable. The current self-employment tax rate is 12.4% for Social Security and 2.9% for Medicare — a total of 15.3% just in self-employment tax. The good news is that while you need to pay the entire 15.3% tax, you can take half of what you pay as a deduction from your income. How does a business determine whether you are an independent contractor or employee?

• But in reality, this isn’t feasible for many construction companies due to the tremendous investment of time and money to operate that way.
• Typically, accounting apps for independent contractors will help with organizing and storing records and receipts, keeping track of accounts payable and accounts receivable, and performing bookkeeping tasks.
• This is because your company’s industry, years in business and unemployment history can all determine the percentage used to calculate the amount due.
• This was indeed the case; the three began to communicate frequently again, and they all continue to work together.
• With a strong commitment to serve over 13,000 construction clients, 77 accounting firms across the nation collaborate to focus on the contractor’s unique financial needs.
• Xero customers also get free access to Hubdoc, which allows users to extract data from documents.

Common Features of an Accounting Contract

The Black Car Fund functions well, observers say, because the state’s legislature and the taxi and limousine sector both threw their support behind it. The New York state taxi and limousine industry has traditionally been heavily regulated, and has historically been a business were drivers often contracted for work, rather than working full-time, or for one employer. It was formed by New York state lawmakers in 1999, with the intent of offering workers compensation benefits to drivers who were injured while they were working. Most commercial litigation cases that we handle are accepted on an hourly fee basis. There are strict time limitations that apply to New York lawsuits, including commercial litigation. The statute of limitations (time limit for commencing litigation) varies depending on the type of case, and in some instances, depending on the defendant being sued.

• Our construction CPAs can help paint your financial story in the best light and make sure there are no misunderstandings.
• As a result, they are not entitled to its benefits, which include compensation for medical bills and lost wages.
• While it’s not perfect, it is one of the best accounting programs on the market today and sets a high bar for what business money management apps can do.
• You can calculate your net profit or loss by subtracting the business expenses from your income, which contractors may omit when estimating taxes.
• Clearly, the subject of payroll taxes involves plenty of moving parts and covers a wide range of accounting knowledge.
• To have your case or legal matter reviewed, we invite you to complete our Questionnaire, or click Contact Us to send an email.

Our Construction Accounting Solutions & Services

Many organizations use outsourced accountancy services to save money, and your services as an independent accountant might work out to be even more cost effective for them than a larger accounting firm. Depending on your company’s needs, we can grow or shrink the scope of our services to provide the targeted solutions you’re looking for. We have experience handling everything from bill payment, payroll processing and maintaining a general financial ledger to preparing financial statements, month-end adjustments, taxes and annual audits. But in reality, this isn’t feasible for many construction companies due to the tremendous investment of time and money to operate that way. By partnering with our experienced outsourced construction accountants, we can fully manage your accounting operations. If you’re an independent contractor who needs complete accounting support, you’ll want to check out Bench.

Contractors, home builders, engineering firms, real estate companies …they all have specialized accounting and income tax rules to follow. Contractors working across state lines also have additional income and payroll tax liabilities in those states. You want to make sure you’re taking full advantage of the numerous special deductions, credits, excise taxes and other elections available. As you’ve probably https://www.bookstime.com/ learned by now, taxes are an inevitable part of doing business in the United States. While most focus generally lies on federal and state income taxes, there’s also a third aspect—payroll taxes. If an employer-employee relationship exists (regardless of what the relationship is called), then you are not an independent contractor and your earnings are generally not subject to self-employment tax.

• We will help you select the best accounting method to help delay reporting income, deferring tax and more.
• For instance, Virginia imposes up to $1,000 on a company’s first default and as much as $5,000 on subsequent offenses.
• “What we found in James Moore was more than an accountant, we found a business partner…CHW is better because of our relationship with James Moore and its people.”
• Not only is the Black Car Fund successful in protecting its drivers from facing job-related injuries entirely alone and on their own dime, but several other states see it as a model for solving the problems of contractors nationwide.
• If there is no signed written agreement expressing a clear understanding as to each parties rights and obligations, what will the parties refer to if a misunderstanding or disagreement occurs?
• However, if you are still unsure of the class of a worker, you can submit Form SS-8 to the IRS.
• The fund receives the money it pays out in benefits from a 2.5% consumer surcharge, which is levied on every taxi, limousine, and car ride in the state.

You’ll get monthly financial reports and can rest easy knowing the books are taken care of. Bench doesn’t include accounting, but it does provide the reports and support you need for your accountant to take care of things come tax day. Zoho made our pick as best accounting software for part-time contractors because its basic, free version provides everything most contractors will need–all at no cost. If your part-time business generates more than 1,000 invoices a year, you’ll need to upgrade. But even the Standard version, priced at just $15 per month billed annually, which offers up to 5,000 invoices a year should be enough for most part-timers. QuickBooks has versions for both Windows and Mac, as well as an online version, which works best for independent contractors.

There are free and paid versions, and typically the paid versions have more features. Some apps offer free 30-day trial periods and others offer discounts for paying annually in advance. Typically, expect to spend anywhere from $4.50 per month for a basic version with a limited number of clients to $300 per month for more custom options with 50 clients, connected bank accounts, and live customer service. Misunderstandings and disputes may create an unpleasant working environment and could possibly result in a lawsuit. By minimizing such misunderstandings, our goal is to avoid expensive and time consuming litigation.

Classify Workers

Clearly, the subject of payroll taxes involves plenty of moving parts and covers a wide range of accounting knowledge. A U.S.-based international CPA can draw on expertise in all of these areas when advising you on your unique business setup. For FICA tax (as well as federal income tax), you must complete and file Form 941, Employer’s Quarterly Federal Tax Return. This form is due by the last day of the month following the end of each quarter, although some employers might be considered annual filers.