Tuesday, 31 May 2016

How to Find Reliable Business Tax Services

Paying tax is a necessity in life, especially if you live in a developed country, like the United States. You can try to avoid it, defer it or even evade it, but you will still pay tax one way or another. At the end of the financial year, businesses and individual taxpayers are required to file their returns before the specified deadline and pay their tax bill without default. Those who fail to pay as required normally find out first hand that the law has a long arm that can reach into their bank accounts, and that's not all. The IRS will still want to recover penalties, fines and even charge the taxpayer in court. The best option is to file accurate returns and pay your tax bill on time. There are many CPA firms offering business tax services that you can count on.

Types of Tax Services

Businesses pay a wide range of taxes, which include:

i) Sales Tax

Whether you're selling goods or offering services, your business must pay sales tax. This type of tax also applies to leasing of automobiles or any type of machinery. The tax is usually transferred to consumers in form of an additional cost, so businesses simply act as collecting agents for the state. There are strict deadlines on when the monthly sales tax returns are supposed to be submitted as well as when payment of sales tax is supposed to be made. A qualified CPA can calculate this tax accurately and help you file the returns.

ii) Payroll Tax

Every single person who derives an income in the country is required by law to pay payroll tax on the salaries, wages and benefits they receive. Employers are mandated by law to calculate payroll tax for their employees, based on their respective salaries and benefits, and submit the tax collected to the IRS. At the end of the financial year, employers are further required to provide employees with accurate information about the total amount of taxes the employer withheld and paid on their behalf. This information is normally provided on the W2 Form. Self employed individuals, on the other hand, are required to calculate their own payroll tax and submit the returns and payments within the set timelines. That said, a CPA can help business owners to calculate business taxes. Check out this site to learn more.

iii) Income Tax

Every business must pay tax on their net income. This is the most complicated tax to calculate since there are many deductions and tax credits to compute. The rate of tax depends on the business structure. There are is also state and federal income tax to be paid by businesses. Due to these complexities, business owners should hire a CPA to compute their income tax bill at the end of the year.

iv) Excise Tax

Manufacturing businesses are required to pay excise tax on the goods they manufacture. There are also some service industries that are required by law to pay this tax.

Hiring a CPA is always a great idea as it will ensure you file your business tax returns on time and accurately, so you will not have to worry about penalties, fines or audits. 

No comments:

Post a Comment