As an entrepreneur, there are some upcoming tax and filing deadlines that you should be aware of to avoid failure to file or pay penalties. Mark your calendar for those that apply to you.
Estimated Tax Payments: these are due 4 times a year if taxes are not paid through payroll deductions. Unless your business is a corporation and you are on the payroll, this means you most likely need to make these payments. These are made to the IRS with Form 1040ES which your CPA should give to you with the amount to pay. Dues dates are January/April/June and September 15th each year, unless this is a holiday or weekend when payments are due the next business day. Also check your state guidelines to make sure you are in compliance.
Payroll Returns: The following federal payroll forms are due:
Form 941: Employer’s Quarterly Federal Tax Return – Due January 31
Form 940: Employer’s Annual Federal Unemployment Tax Return – Due January 31
Form W2: Wage and Tax Statement – Due to employees no later than January 31
Form W2: Wage and Tax Statement – Due to Social Security Administration (SSA) by February 28
Form W3: Transmittal of Wage and Tax Statements – Due to the SSA by February 28
State Payroll Returns: Form numbers vary – Due January 31
1099 Forms: This form is used to report amounts paid to non-employee independent contractors and vendors. Generally, those subject to receiving them are those who are not corporations who were paid $600 or more, but who were not paid by credit card as those amounts will be reported by credit card processors. Please note there are exceptions not explained here, so contact a professional to assist you if you have questions. Forms are due to your vendors by January 31st and the IRS by February 28.
Hiring a professional to assist with these filings will help you stay compliant if you get overwhelmed with the process and don’t want to have to remember all the deadlines. If you aren’t yet working with a bookkeeper or CPA, contact other business owners and ask for a referral. You’ll be glad you did!