Small Business
The most frequently asked tax questions related to Small Business
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Answer Tax QuestionsAre there any federal agencies designed to help small businesses ?
Asked Wednesday, October 11, 2000 by an anonymous user
The Small Business Administration (SBA) is a federal program set up to help small businesses obtain financing, usually through private sources. Speak to your local CPA about the feasibility of the SBA assisting your business. The SBA website is sba.gov.
Are there companies that provide search services to ascertain if a new company name will infringe on an existing name or trademark ?
Asked Wednesday, October 11, 2000 by an anonymous user
You can request a report from a search company that will check records in the US Patent and Trademark Office, state registers and various other business sources. There usually is a fee for this service. Some companies are: CSC, The US Corporation Company, 1090 Vermont Ave NW, Washington DC 20005, 800 241-6518 800 241-6518. Thomson and Thomson, 500 Victory Road, North Quincy MA 02171-3145, 800-692-8833 800-692-8833.
The US Corporation Company, 1090 Vermont Ave NW, Washington DC 20005, 800 241-6518 and Thomson and Thomson, 500 Victory Road, North Quincy MA 02171-3145, 800-692-8833.
W-2 forms to employees - due date
Asked Thursday, October 05, 2000 by an anonymous user
Employers must give or mail employees' copies B, C and 2 of Form W-2 on or before January 31st of the following calendar year. A W-2 must be issued if any of the following criteria exists: if there was any withholding; if wages exceed the amount of one exemption. If any employee was paid more than $600; or to any person you paid an amount for services if you are in a trade or business. An employer may be subject to penalties for non-compliance.
Who are considered employees ?
Asked Thursday, October 05, 2000 by an anonymous user
Generally, employees are defined either under common law or under special statutes for certain situations.
Generally, anyone who performs services is an employee if you, as an employer, can control what will be done and how it will be done.
This is so even when you give the employee freedom of action. What matters is that you have the legal right to control the method and result of the services.
This definition is important in relationship to classifying workers as employees or independent contractors.
In general, people in business for themselves are not employees. For example, doctors, lawyers, construction contractors and others in an independent trade in which they offer their services to the public are usually not employees.
You are not liable for employment taxes on the payments to non-employees such as independent contractors.
Generally, anyone who performs services is an employee if you, as an employer, can control what will be done and how it will be done.
This is so even when you give the employee freedom of action. What matters is that you have the legal right to control the method and result of the services.
This definition is important in relationship to classifying workers as employees or independent contractors.
In general, people in business for themselves are not employees. For example, doctors, lawyers, construction contractors and others in an independent trade in which they offer their services to the public are usually not employees.
You are not liable for employment taxes on the payments to non-employees such as independent contractors.
Federal Unemployment Tax - FUTA due date
Asked Thursday, October 05, 2000 by an anonymous user
The Annual Federal Unemployment Tax (FUTA) form is due by January 31st, or if all deposits were filed timely, you would then have 10 additional days.
W-2 - Correct a previously issued
Asked Thursday, October 05, 2000 by an anonymous user
Corrections are made using Form W-2C and Form W-3C. A copy of the corrected version should be given to the employee and also sent to the Social Security Administration.
Form 941 due date
Asked Thursday, October 05, 2000 by an anonymous user
The Employer's Quarterly Federal Tax Return (Form 941)for the 1st period January-March is due by April 30.
The Employer's Quarterly Federal Tax Return (Form 941)for the 2nd period April-June is due by July 31.
The Employer's Quarterly Federal Tax Return (Form 941)for the 3rd period July-September is due by October 31.
The Employer's Quarterly Federal Tax Return (Form 941)for the 4th period October- December is due by January 31st.
In any quarter, if all the taxes were timely deposited for the quarter, then the due date is extended 10 more days.
If the 941 reports are not filed timely, there is a late filing penalty. There is also a penalty for late paying with associated interest on the balance due.
The Employer's Quarterly Federal Tax Return (Form 941)for the 2nd period April-June is due by July 31.
The Employer's Quarterly Federal Tax Return (Form 941)for the 3rd period July-September is due by October 31.
The Employer's Quarterly Federal Tax Return (Form 941)for the 4th period October- December is due by January 31st.
In any quarter, if all the taxes were timely deposited for the quarter, then the due date is extended 10 more days.
If the 941 reports are not filed timely, there is a late filing penalty. There is also a penalty for late paying with associated interest on the balance due.
Forms 941 or 944 - filing requirements
Asked Thursday, October 05, 2000 by an anonymous user
Form 941 and Annual Form 944 will still have to be filed when no wages are paid unless you are considered a seasonal employer, farm employer or household employer.
941 - tax liability deposit threshold
Asked Thursday, October 05, 2000 by an anonymous user
if the tax liability for a quarter is less than $2,500, it may be paid with the quarterly filing of Form 941. If it is $2,500 or more, then it must be deposited on either a monthly or semi-monthly basis.
The IRS will notify you each November as to whether you are a monthly or semi-monthly depositor. The IRS uses a 1 year look back period ending the preceding June 30th.
The IRS will notify you each November as to whether you are a monthly or semi-monthly depositor. The IRS uses a 1 year look back period ending the preceding June 30th.