How to Start a Carwash: Prepare for tax season - Professional Carwashing & Detailing

How to Start a Carwash: Prepare for tax season

Stay on track in the midst of confusing tax laws.

Filing taxes for anyone can be a tedious process, but small business owners may find this time of year especially grueling. Careful record-keeping over the previous 12 months is important when the first of the year arrives. In order to avoid any further effort on your part after your tax return is finally sent away, heed these tips by ADP, a global provider of Human Capital Management (HCM) solutions. These guidelines will also assist your accountant or payroll service.

Verify tax IDs – Confirm these numbers with your accountant or payroll service before processing the company’s last payroll for 2014.

Confirm W-2 and 1099 information for employees – Have employees confirm their information on these forms before the end of the year, says the release by ADP. Notify your accountant or payroll provider immediately if you need to file a W-2c form to correct information.

Know your filing responsibilities – Verify your responsibilities with your accountant or tax advisor to determine who is responsible for filing the company’s taxes.

Submit payroll adjustments – Turn in these adjustments for employees before your final payroll report, or Dec. 31.

Report any missing wages or miscellaneous income/tax credits – Inform your accountant or payroll service provider about any fringe benefits, tips, COBRA payments, employee moving expenses, unsubstantiated employee expense reimbursements and more before your final payroll report.

Give employees year-end bonuses – These are tax-deductible. If your business uses an accrual-based accounting system, you may be able to pay bonuses up to March 15, 2015. Check with your tax advisor to find out.

Understand how the Affordable Care Act affects you – You can watch free webinars to learn what the new legislation means for your business.

Meet with your accountant – He or she knows what’s best for your business, and can advise on options to minimize tax liability.

The release also recommends setting up a qualified retirement plan before the end of the year.

While these tips can help get businesses on track for tax season, they may not be comprehensive. Every business should meet with its accountant or tax advisor to ensure they are following tax laws and doing what is best for this business, explains the release.

Click here to read the entire release.

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