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Tax-filing mistakes
Q: I own a small business with two employees. Any big tax filing mistakes or pitfalls I should look out for and be sure to avoid?
A: As an employer you have several federal and state employment tax obligations. The failure to comply with these rules can result in substantial penalties. Make sure you follow correct withholding rules for income taxes and FICA (Social Security and Medicare taxes) and pay employment taxes over to the government on time. You also need to know how these taxes apply to noncash benefits you may furnish your employees, such as personal use of a company–owned car. You also must file various tax returns — some quarterly, others annually.
To learn about employer tax obligations at the federal level, see IRS Publication 15, Circular E, Employer's Tax Guide, at www.irs.gov. Also contact your state tax authority for your state income tax withholding and unemployment tax obligations.
To learn about employer tax obligations at the federal level, see IRS Publication 15, Circular E, Employer's Tax Guide, at www.irs.gov. Also contact your state tax authority for your state income tax withholding and unemployment tax obligations.
Some issues discussed in the expert forum are complex and continually changing.We recommend you consult a professional advisor about your specific circumstances, needs, and applicable laws. More details.