Tax season can be a stressful time of the year for all New Yorkers, and businesses are no exception. Understanding the ins and outs of filing business taxes may, however, make the process a little less difficult and may even create some benefits for the company.
It can be useful to keep in mind that some of the tax stress surrounding payroll and state corporate taxes may be offset by the knowledge that those payments are important deductions on the small business’s federal tax return. If the business’s organizational structure is a corporation or S corporation, and the company is having difficulty completing its taxes, both business entity types can receive an automatic 6-month extension to file their tax returns, however, the time to pay is not extended.
Some important money-savers for businesses to keep in mind when paying federal taxes include mileage deductions; value-based deductions on qualifying property owned by the business; and expensing office equipment over a 5-year period and expensing office supplies.
As is true of running a business, there are always a number of important considerations when it comes to business taxes. For example, documenting expenses properly and paying wages and bonuses in a timely manner can have ramifications for a business. In addition, companies should understand the implications of classifying workers as either employees or independent contractors. With so many important variables to consider when paying business taxes, it can be useful to conduct careful business tax planning to maximize deductions and enjoy a tax season that is as smooth as possible.
Source: NerdWallet, “Corporate Tax Tips for Small Businesses,” Accessed on March 23, 2015