When do I need to file small business taxes?

There are a number of important dates related to paying taxes as a small-business owner. Some depend on what type of business you have and whether or not you have employees. We'll review the filing strategy for income tax, estimated taxes, self-employment tax and payroll taxes assuming, that your business is operated as a sole proprietorship.

Income and Self Employment Taxes

April 15 is the deadline for filing your annual return. File form 1040, including schedule C, which is used to calculate profit or loss for the business. If a profit is shown, you must also include Schedule SE, used to calculate self-employment tax due for the year. It is important to understand that although these forms are filed annually, payment is required quarterly if your business is profitable.

Estimated Taxes

You will also make your first estimated tax payment for the year on April 15 if you expect adjusted total earnings for the year to exceed $1000. File a form 1040-ES voucher with your payment. Form 1040-ES is used to calculate estimated taxes and includes four payment vouchers which are to be filed, along with a payment, on April 15, June 15, September 15 and January 15.

Payroll Taxes

If your business does not have employees, you can skip this section. Otherwise on or before January 31 you must provide each employee with a form W2 and a Tax Statement for the previous calendar year. While technically not a filing, this is an important requirement.

No later than February 28 you must file copies of the W2 forms noted above as well as form 1096 if you made payments to consultants or independent contractors. If your employees receive reportable tips you must also file form 8027 at this time.

Unless the IRS informs you that you can file form 944 annually, you must file form 941quarterly by April 30, July 31, October 31 and January 31. This form summarizes income tax, social security tax and Medicare tax withheld on behalf of your employees. It also accounts for the part of social security and Medicare taxes you pay as an employer.

If the total withheld is less than $2,500, payment may be made with the filing. Otherwise you must make deposits monthly or semiweekly depending on the amount you typically withhold. Most small businesses that are required to make deposits are on a monthly schedule, with deposits due by the fifteenth day of the month for amounts withheld the prior month.

Warning

This answer is intended to provide a quick summary of filing requirements. The tax code allows for a myriad of situations, some of which may apply to your business. If your business is incorporated or is operated as a partnership, filing requirements will be different. You are encouraged to consult with a tax professional to be certain that your accounting system captures all required information, and that all filings and payments are timely and accurate.

Source:

IRS Small Business Publication 15