There are easy ways to avoid getting dinged for careless tax mistakes. Stay informed and diligent with these tips:
Accurately classify your employees. Employees are classified according to their hours and duration of their job, such as full-time, part-time, temporary or seasonal. Make sure that you classify employees versus independent contractors correctly.
Stay in the loop. Wage base limits and tax rates can change annually. Make sure you're up-to-date on the most current rates.
Pay your taxes on time. Be sure that you pay all payroll taxes by the IRS deadline.
Correct your mistakes. Mistakes happen. If you make one, be sure to amend it immediately using the correct form.
Use your resources. It's easy for small business owners to take on more than they can handle, which leaves room for error. Partner with reputable tax professionals and use Incfile's online resources to help you understand and navigate your taxes.