“Making payroll”—that is, managing a small business so that paychecks are delivered on time even when the unexpected occurs—can be one of the hardest parts of a small business owner’s job. One thing certain to make that job even harder is a payroll tax mistake that can lead to IRS problems.
Your favorite customer calls you and wants you to complete a job. You have a dilemma—you can’t complete it in a timely manner, but want to keep this client happy. Hiring a subcontractor may be a great solution to your problem. But before you hire Mark or any other contractor, follow these pointers.
Small businesses are more likely to get selected for an IRS audit, because many of them are unfamiliar with business tax rules and often conduct transactions in cash, which leaves more room for errors.
Your odds of facing an indirect tax audit are actually higher than the odds of IRS small business tax audits. That’s because while the IRS audits 2–12% of the tax returns filed with the agency every year, some states audit up to 20% of the business sales tax reports filed each year.
Every tax-filing season, most Americans go on a quest to find as many tax deductions as possible. At the same time, many small business owners and independent contractors leave money on the table because they fear that certain tax deductions will draw the attention of auditors.
Small Biz Club is the premier destination for small business owners and entrepreneurs. To succeed in business, you have to constantly learn about new things, evaluate what you’re doing, and look for ways to improve—that’s what we’re here to help you do.