Maximize your tax benefit with these five tax tips every small business owner should know.Read More
As the end of the year approaches, the IRS encourages taxpayers to consider a tax withholding checkup. When taxpayers take a close look to make sure the right amount of tax is withheld now, they can avoid an unexpected tax bill next year.
Here are five examples of taxpayers who would benefit from a withholding check-up:
1) Taxpayers who received large tax refunds in past years
When a taxpayer has too much tax withheld from their paycheck, they pay too much tax during the year. They can change their withholding to have money upfront rather than waiting for a bigger refund.
2) Taxpayers who owed taxes in years past
Taxpayers with too little tax withheld might owe money. Under-withholding can lead to both a tax bill and an additional penalty.
3) People with a second job
Taxpayers who work more than one job should check the total amount of taxes they have withheld and make adjustments as necessary. This will ensure their withholding covers the total amount of the taxes they owe, based on their combined income from all their jobs.
4) Taxpayers who make estimated tax payments
Some taxpayers make quarterly estimated tax payments throughout the year. This includes self-employed individuals, partners, and S corporation shareholders. If these taxpayers also work for an employer, they can often forgo making these quarterly payments by instead having more tax taken out of their pay.
5) People with a new job
Taxpayers who start a new job should check their withholding to make sure they are having enough taxes withheld. Their total withholding should cover the income tax owed from their new and old jobs combined.
To make sure their employer withholds the right amount of tax, employees can adjust their Form W-4, Employee’s Withholding Allowance Certificate. In many cases, this is all they need to do. The employer uses the form to figure the amount of federal income tax to be withheld from pay. This takes time, so taxpayers should make adjustments as soon as possible so the changes can take affect during the final pay periods of 2017.
The IRS has several resources that help taxpayers determine if they are having the right amount of tax withheld from their pay.
- IRS Withholding Calculator – Online tool that helps determine the correct amount of tax to withhold.
- IRS Publication 505, Tax Withholding and Estimated Tax
- Tax Withholding – Find FAQs and complete information on withholding and estimated taxes.
As a business owner, you’ve got big dreams and ambitions. It’s time to get a financial system to match those ambitions.
What do we mean by that?
Business owners want to do big things, but have no idea what’s happening financially in the business.
- You don’t know how profitable you are
- You can’t look forward and project the future
- You never see financial reports until way too late
- You don’t really know where your money is going
- You are wasting time on data entry and bookkeeping
Don’t Settle For Less Make a Change
At Nolasco Enterprises we have a simple process to make your bookkeeping easy and to help you be accountable to the goals for your business.
Here’s how it works.
1) You’ll Gain Peace of Mind When We Clean Up Your Financials
Many business owners have no idea how much money they are making or how their business is doing. At best they have financial information but it’s too late to do anything with it.
Getting setup with Nolasco Enterprises financial system is seamless and simple. We’ll do all the work, whether we clean up your historical data or start clean at January 1st, we’ll handle the transition and you’ll stay focused on your business.
2) You’ll Save Time and Reduce Stress When We Take Over the Bookkeeping
We will handle the day-to-day bookkeeping so you’ll have real-time data and a forward-looking view at how to improve.
You can focus on building your business, we’ll take care of the numbers and keep you on track.
3) You’ll Gain Confidence and Clarity with our Reporting System
Having the bookkeeping under control is only the foundation. Once that’s set, we’re going to provide you with a set of management reports every month to guide you toward growth. Every month you’ll see:
- Balance Sheet
- Profit and Loss
- Gross Revenues
- Gross Expenses
- Net Income
- Owner’s Draw
When you get these reports, we will share with you some standout numbers and be available to discuss exactly what’s happening financially in the business.
We will be your financial team providing accountability and guidance so you can do huge things in your business.
We will partner with you to provide financial clarity and a path toward growth.
Schedule Your Strategy Session
When you fill out this form you’ll be able to schedule an appointment with us to discuss whether this would be a good fit on both sides.