Although tax season can be a stressful time when you are running a small, professional business, asking yourself some key questions can help alleviate any anxiety you may have when filing taxes and wondering if you are using the right strategies to protect your business and set it up for success. Let the questions below guide you during tax season, and all year long.

  1. Do you know the status & classifications of you and your employees?

    This is essentially the first step- ensuring you have correct, up to date information for your employees and any independent contractors. Examining reimbursements, contributions, deductions and more carefully will help ensure no mistakes are made.

  2. Is all of your paperwork organized?

    Entrepreneur does a great job outlining all the forms you may need

    • Annually:
      • Employer’s Annual Federal Tax Return (Form 944); only file Form 944 annually if you do not file Form 941 quarterly
      • Employer’s Annual Federal Unemployment (FUTA) Tax Return (Form 940)
      • Federal Wage and Tax Statements (Form W-2)
      • Transmittal of Income and Tax Statements (Form W-3)
      • Federal 1099-MISC form
      • Federal 1096 form
      • Employer information about health care coverage enrollment for their employees, such as Forms 1095-C and 1094-C if you are an applicable large employer
      • One form for each employee to report health care coverage; provide Form 1095-C if you are an applicable large employer, or if you are self-insured, you will need to give your employee(s) Form 1095-B
      • Some states require income tax returns
      • Some states require unemployment tax returns
      • Form 943 if you are in the agriculture industry
    • Quarterly:
      • Employer’s Quarterly Federal Tax Return (Form 941)
      • Some states require income tax returns
      • Some states require unemployment tax returns
      • Most local income tax returns need to be filed quarterly
  3. Are you maximizing your deductions?

    Don’t overlook key deductions that could help your bottom line. From fees to insurance to expenses, don’t cheat you and your business out of important deductions.

  4. Do you have a long term strategy?

    While there is quite a bit to consider around tax season, it’s important that you think beyond tax season and make taxes more of a long term strategy for you and your business. Tax strategies can help maximize profits and protect assets.

The keys are to be organized, pro-active, and reach out to help when you need it!