Posts filed under the Small Business Taxes category.

Your Payroll Responsibility as a Employer

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As a business with employees, you have certain important responsibilities relating to payroll taxes. Understanding of these responsibilities will help you in making certain that you comply with the law. You must calculate payroll taxes and deductions, make payments and report payroll tax to the federal and state tax agents.  Here is a summary of payroll bookkeeping and reporting responsibility for a business to pay employees.

Summary of Payroll bookkeeping and reporting

Requirement

Purpose

Action

Agency

I-9 (completed by both employee &  » Read more about: Your Payroll Responsibility as a Employer  »

Health Saving Account for Small Business Owners

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HSA contributions for employees are usually deductible expenses for most businesses. However, HSA contributions made on behalf of Small Business Owners are subject to different rules. Sole proprietors, Partners and 2% shareholders of an S corporation are not eligible for salary reduction (Pre-tax) contributions to an HSA. The owners can establish HSAs and fund their HSAs in anyway they see fit. They can then deduct their HSA contributions on their individual tax return.

Sole proprietors
Sole proprietors can deduct the amount contributed on behalf of employees on their schedule C.

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