Did you start or acquire a new business this year? If so, you may feel a little overwhelmed with the new responsibilities and you could be a little intimidated interacting with the IRS for the first time. The first thing you should do as a new business owner is get a tax ID number or Employer Identification Number (EIN). You can apply for this directly through the IRS online.
Your Tax Responsibilities:
- File your business’s annual income tax return
- Pay estimated taxes for you if you own a pass-through entity or for your C Corporation
- Payroll Tax Activities: withholding, depositing payments, and filing employer tax returns
- Submit information returns if you have independent contractors, maintain qualified retirement plans, or offer other benefit programs to your staff
You can and sometimes must handle certain tax responsibilities electronically. Many online activities can be facilitated utilizing government provided resources listed below. Not everything listed below may apply to you so remember to consult your accountant if you have any questions.
- If you have a payroll or make estimated tax payments, schedule your tax deposits in advance by using EFTPS.gov.
- Transmit W-2s to the Social Security Administration
- Submit copies of employees’ W-2s with an IRS transmittal form (Form W-3) to the Social Security Administration through the Business Services Online. This suite of services allows organizations, businesses, individuals, employers, attorneys, non-attorneys representing Social Security claimants, and third-parties to exchange information with Social Security securely over the internet. You must register and create your own password to access Business Services Online.
- Remit Information Returns to the IRS
- You may have to file annual information returns to inform the IRS about your payments to independent contractors you utilize. Complete this task through the Filing Independent Returns Electronically (FIRE) System.
Filing Annual Retirement Plan Returns
If you want or need to file a form in the 5500 series electronically, do this through the Department of Labor’s EFAST2. This is an all-electronic system designed by the Department of Labor, Internal Revenue Service, and Pension Benefit Guaranty Corporation. The purpose is to simplify and expedite the submission, receipt, and processing of the Form 5500 and Form 5500-SF. These forms must be electronically filed each year by employee benefit plans to satisfy annual reporting requirements under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code.
If you need assistance with any of the required tasks above, our professionals can help. Click here to contact us today!