Other Taxes That Could be Draining Your Wallet

Income tax is everyone’s favorite, but small business owners must keep an eye on other tax obligations affecting their finances.

As a CPA, these are the most common types I see small business owners struggle with:

1/ Self-Employment Tax

Self-employment tax covers social security and medicare for self-employed individuals.

2/ Employment Taxes

If you have employees, you’re responsible for employment taxes like Social Security, Medicare, and Federal Unemployment.

3/ Excise Tax

If you manufacture or sell specific kinds of products, operate certain kinds of businesses, or use specific kinds of equipment, you may be required to pay excise taxes.

The #1 best way to minimize these taxes? Pay them on time.

This is the biggest mistake I see small business owners make. Control your tax obligations by making all your payments when they are due so you can avoid costly penalties.

Work closely with your accountant to understand your obligations and stay updated on tax laws.

By familiarizing yourself with the different kinds of taxes and staying up-to-date on the latest tax laws, you can help your business avoid costly tax mistakes.