Your tax liability refers to the amount of taxes you owe to your local government and the federal government. Understanding the scope of your tax liability is vital to your company’s financial management. If you do not make the required tax payments, pay late, or do not pay the right amount, your business could be hit with severe fines, not to mention added interest on top of what you owe. It’s wise to work with a professional tax liability service. Here at J.R. Martin & Associates, we provide the following tax liability services for small businesses throughout the Redding, CA, area.
Many different factors determine what your federal income tax obligations are. For instance, the type of operating structure you use for your business, how much income your business generates, your company’s capital assets, your payroll, and more. Understanding what types of federal taxes you owe, how much you owe, and when you need to pay are very important. We can help identify and track your federal income tax obligations so that you don’t have to.
Federal income tax won’t be your only obligation; you will also owe state income tax. Again, we will help identify and manage all of your state income tax obligations. Not only can we help plan ahead, but we can also help make sure that you are paying them on time and in full and avoid any interest or penalties.
Most businesses must pay estimated quarterly taxes if they owe more than $1,000 in taxes for the year. Companies structured as corporations must pay estimated quarterly taxes if they expect to owe more than $500 for the year. If you neglect to pay estimated quarterly taxes, you may have to pay upwards of a three percent underpayment penalty. Such a penalty can represent a significant chunk of money, so making accurate, on-time quarterly payments is wise. We can help calculate an accurate estimate and ensure that it is paid on time to avoid such a penalty.
If you have anyone on your payroll, you will also have to pay payroll taxes. These taxes fund various insurance programs, such as Medicare and Social Security. As a part of our payroll management service, we will calculate the amount of taxes owed on every employee’s paycheck.
Not only can we help you calculate what is owed, but we can also manage all of your tax payments on your behalf. As a part of this service, we will make sure that all of your tax payments are submitted on time so that you won’t have to worry about late payment penalties. We will track all of your tax liabilities and payments for future reference as well.
Your company’s success depends greatly on financial flexibility and effective financial management. To achieve this, you have to have a thorough understanding of your organization’s tax liability. Misunderstanding what taxes you owe or how much you owe can result in severe financial penalties and added interest, both of which can hurt your company’s future financial flexibility and potentially stunt its growth. Here at J.R. Martin & Associates, we provide small businesses throughout Northern California with complete and comprehensive tax liability services to ensure that your company pays all of its taxes on time and in full.