The fourth quarter is quickly coming to an end, which means businesses have to start looking ahead to 2014. Specifically, enterprises should start preparing for tax season now, even though the IRS recently stated that next year's reporting period will be delayed by up to two weeks due to the government shutdown, according to The New York Times.
Sorting out your financials now will ensure that you can easily report all claims by April 15, as the final deadline has not been pushed back. The capital disbursed through your payroll services is likely the largest expense that you'll have to report for tax purposes, so you have to keep clear, concise records of all wages. Below are three tips that will help you get ready for 2014's tax season.
Have workers review forms
A massive component of filing taxes based on payroll is to have accurate information from your employees. That's why the American Express OPEN Forum recommends having members of the workforce review their W-2 forms to search for erroneous data. Further, the news source explains that contractors should be asked to go over their 1099-R sheets for the same reason.
Handling this procedure ensures that you'll have sufficient time to make corrections. In order to amend employee information, you're required to file a W-2c, which should be filled out and sent in well ahead of the reporting deadline.
Consider benefits
Fox Business points out that offering certain perks through your employee benefits program instead of wage increases can lower your total tax bill. The IRS has a list of what tax-free items and services can be given to the staff. We recently covered some of these elements.
Consider implementing some of those benefits before the year ends. While staff members may prefer raises initially, you should explain how these perks will be beneficial in the long run for you and them.
Seek help
When possible, you should leave taxes to the professionals who have cutting-edge payroll processing software. Payroll outsourcing firms like Triton HR can account for all wages and ensure that you're withholding the correct amounts from every employee. Additionally, experienced companies understand the importance of giving you sufficient time to review all information so you won't file forms with any errors. Seeking professional assistance can be the difference between an easy tax season with minimal troubles and a complicated one that results in long-term issues.