As a business owner, it is important to stay compliant with your state’s payroll and sales tax laws. Otherwise, it could result in some pretty hefty fines. However, there are so many rules and regulations that are constantly being updated that it’s easy to get confused. In this case, many business owners hire accountants who can handle the complex details, leaving you free to run your business.
Payroll can be a rather complex task. Taxes, social security and withholdings must be calculated and hours must be properly tracked. Most importantly, your business must stay in compliance with payroll laws.
In order to stay in compliance with current payroll laws, you need to obtain an Employer Identification Number, which will be necessary when filing with the IRS. New employees must fill out the necessary paperwork to have the appropriate taxes withheld from their paychecks, and employee paperwork must be kept on file. Overtime and bonuses must be properly calculated, and you must be absolutely certain that payroll taxes are filed on time.
For smaller businesses that deal with fewer employees, the owner can usually handle payroll. Larger businesses may opt to hire someone to handle payroll for them, yet others may choose to hire an accountant that is well versed in the current rules and regulations pertaining to payroll administration.
Like payroll, there are many regulations and laws surrounding sales tax that must be followed in order to remain compliant. Different states have different laws, and even certain areas within one state may have their own sets of laws. Before you can start collecting sales tax, you need to be registered. Once registered, you must collect the appropriate sales tax and report the taxes you collect, be it monthly, quarterly or annually. If you do not file these reports according to your state or local rules, you could face steep penalties.
The rules and regulations surrounding payroll and sales tax compliance can get rather tricky. At RMG, we can help you run your business smoothly and without worry. We help businesses stay compliant by developing and implementing the necessary controls in connection with sales tax and payroll administration. We guide clients through the registration process, assist with monthly, quarterly and yearly filings and returns, and communicate with authorities, when necessary. Contact RMG today to learn how we can help you with payroll and sales tax compliance.