Keep Your Money in Your Wallet Through Tax Saving Opportunities
As a small business owner, you are always looking to save money on taxes. Keeping up on tax saving opportunities such as deductions, payroll taxes, and depreciation can be a daunting task.
Small business owners can deduct all expenses that are necessary to the running of their business. Maintaining good records of those expenses (i.e. receipts, canceled checks, invoices, etc.) ensures that you are taking advantage of every deduction you are entitled to. This also provides proof in the event of an IRS audit.
If you have employees, you are paying employer payroll taxes on the wages and bonuses you pay them. Social Security tax is 6.2% of an employee's wages up to $118,500 in 2015, Medicare tax is 1.45% of all wages earned. Other employer payroll taxes include FUTA (.8% of the first $7,000 wages for each employee,) and your state's unemployment tax. One way to reduce payroll taxes is to offer employee benefits or outsource tasks. Consider using a service for bookkeeping, payroll, marketing or human resources. These allow business owners to reduce payroll taxes, and write those costs off as expenses.
For more information on how your business can save money on taxes, give us a call.