Helpful Tips for Keeping Your Business Taxes Under Control

As a business owner, you want to be profitable. While it is important to make as much money as possible, you also want to make sure that you keep other costs low. One area you can help do that is keeping your taxes under control.

Take Advantage of Deductions and Credits

Tax deductions and credits can help lower your income taxes. Tax credits decrease how much in taxes you owe, while deductions decrease how much of your income is taxed. There are a few credits to be aware of that can help keep businesses at a manageable level. A few examples of these credits are health insurance premiums and medical leave, making businesses accessible to those with disabilities, and hiring employees that are underserved like ex-felons.  

Make Sure Your Property Taxes Are Fair

Property taxes are based on the property value. This means that the amount can vary greatly depending on where your business is located, and the type of property. You want to make sure these taxes are fair, so you aren’t paying more than necessary in taxes. Consulting a certified appraiser is often the first step that commercial property owners take when looking to avoid a property tax hike. Your businesses assets, such as equipment, computers, or machinery, are also included in the property taxes. Different categories are taxed differently, so you should make sure they are within the correct tax category.

Get a Handle on Payroll Taxes

You as the business owner are responsible for your employees’ taxes, even if you are using a payroll company. You want to make sure these are being done correctly to save you time and money. There are penalties if these aren’t done correctly, such as if they are late or not paid. There are both federal and state payroll taxes. The main federal taxes include social security and Medicare. State payroll taxes include unemployment insurance, and some states also include disability insurance. While the employee owes some, so does the employer. You can make sure all of these are correct, so you don’t pay more than necessary or accrue fines.  

Making sure your taxes are under control can help your business save unnecessary costs in the form of taxes. Keeping your taxes under control will ultimately help you be profitable. When in doubt, don’t hesitate to have a network of trusted professionals who can help.  

Read this next: How Do I Set a Business Budget?

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