The U.S. Small Business Administration (SBA) and the Internal Revenue Service (IRS) used last week to provide materials and information to help small business owners and self-employed individuals comply with filing and paying requirements.
Here’s a recap of key topics covered in IRS messages during National Small Business Week. We will use a future post to review information from the SBA.
Small businesses can share the word with employees about the child tax credit
The IRS encourages employers to help get the word out about the advance payments of the child tax credit during Small Business Week. Employers have direct access to many who may receive this credit. IRS.gov has tools employers can use to deliver this information, including e-posters, drop-in articles for newsletters and social media posts to share.
IRS resources to help small business employers understand and meet their tax responsibilities
The IRS acknowledges that small business employers have unique tax responsibilities. The agency has a variety of information and resources to help employers understand and meet these unique tax responsibilities. Most of these resources are available anytime at IRS.gov.
Employers should choose their payroll service provider carefully
To meet payroll and employment tax responsibilities, many businesses hire a payroll and payroll tax company. Most of these businesses provide quality service, however, sometimes a payroll service provider doesn’t submit their client’s payroll taxes and closes abruptly. The client remains legally responsible for paying the taxes due even if they sent funds for deposits or payments to the payroll service provider. The IRS urges employers to choose carefully when selecting a payroll provider. The agency also encourages employers to enroll in the Electronic Federal Tax Payment System. It’s free and when deposits are made under their EIN, it lets them monitor that their payroll service provider is making their tax deposits.
Small business owners should see if they qualify for the home office deduction
Many Americans have been working from home due to the pandemic the home office deduction. This tip will help taxpayers understand the home office deduction and whether they can claim it.
Renewed work opportunity tax credit can help employers hire workers
Recent legislation extended the work opportunity tax credit through the end of 2025. With many businesses facing a tight job market, the IRS reminds employers to check out this valuable tax credit available to them for hiring long-term unemployment recipients and other groups of workers facing significant barriers to employment.