MILLBURY, MA…
April 15 is synonymous as the day to pay taxes. Yet as a small business owner, the day you pay and the day you begin preparations should not be in the same calendar year. Particularly given the new tax laws over the past few years.
“The increases in several taxes last year—for example, the top tax rate for the top federal wage jumping from 35% to 39.6% in 2013—should have small businesses in the be prepared mindset now,” said Millbury, MA-based CPA Paul C. Dion. “But unless you earned that much last year, you probably aren’t thinking about that right now unless you are working with your accountant throughout the year.”
The top federal wage tax rate is but one tax increase Dion cites as having an impact on small business owners. For those who had to sell stocks or mutual funds to pay taxes for 2013 taxes, the capital gains tax rose in 2013 to 20 percent with a Medicare tax on those gains of 3.8 percent for some. That can make this year’s tax bill even steeper.
“Having your accountant come up with a tax projection before the end of the year can be very helpful in putting your finances in order for when it comes time to pay your taxes by April 15,” said Dion. “Yes, it’s true you might not have your final numbers but you can put together some sort of estimate to help plan. Even something as simple as working with your accountant to get all the forms you’re going to need together is something you can do now to make getting your taxes done easier.”
One headache-saving exercise Dion recommends small businesses undertake is going through the employee base and make sure all the information is up-to-date to ensure all the termination documents from former employees are filed with the proper arms of the government.
Early preparation also benefits small business owners who do business in multiple states. According to Dion, companies that do business across states have to deal with all types of notices and announcements regarding sales tax, income tax, use tax and various property taxes.
“If you do business in multiple states, it really is imperative that you begin your tax preparations now,” said Dion. “Otherwise, as a small business owner, you could be looking down the double barrel of large tax bills from both federal and state government.”
For a free consultation and planning tips for the coming tax year, please call Paul Dion CPA at (508) 853-3292. For more information, you can also visit www.paulcdioncpa.com.
ABOUT PAUL DION, CPA
Beyond simple “bean counting”, Paul Dion, CPA and associates work side by side and speak in common English to help clients fully understand their tax situation and take proactive steps to pay the least amount of tax legally allowed while minimizing the risk of an audit. Clients save money and sleep well as night.
Business services include small business accounting, payroll, cash flow management, strategic business planning, new business formation, internet controls, QuickBooks, part-time CFO, bank financing, succession planning and non-profit organization direction.
For a free book, more information or a complimentary consultation, please visit www.PaulDionCPA.com or contact Paul Dion CPA, via Info@PaulDionCPA.com or (508) 853-3292. Offices are conveniently located at 22 West Street, #6, (Felter’s Mill), Millbury, MA 01527.
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