As a small business owner, you are driven and passionate. You keep your head down and do the work. As your business grows, you are not only your own boss, but will also hire employees. It’s no secret that running a successful business involves both spending and making money. The goal is to spend less than you make!
When it comes to filing your taxes, there are ways to save as an employer. There are tax deductions based on the expenses you pay for your employees. We want to make sure that as a business owner you are taking advantage of all the tax deductions possible!
The following are the top 5 tax deductions you can take if you have employees:
Wages & Compensation – Money paid to employees for services provided whether they are based on an hourly amount or annual salary.
Workman Compensation – Insurance that provides employees with replacement wages and medical insurance in case of a job-related injury. This is required by law if you have employees.
Payroll Taxes – The employer’s share of taxes imposed on wages & compensation.
For example: Social Security, Medicare and Unemployment
Payroll Processing – The fee charged to prepare and process wages and taxes for the business.
Employee Benefit Programs – Programs that the business has in place for the benefit of the employees.
For example: Retirement plans, Health insurance premiums, and Educational opportunities
We are throwing in a BONUS tax deduction you may not be aware of. It’s actually a personal expense related to owning a business. Most personal expenses, such as things like hair cuts or gym memberships are not tax deductible, however we’ve got one for you!
Self Employed Health Insurance – Health insurance for you as the owner is reported on a Schedule 1
You have enough to worry about. We are here to help unravel taxes for business owners so you are really clear about which deductions apply to your business! By letting us prepare your taxes, you take back your time and can focus on growth. If you are a new business owner and worried about taking the correct deductions, please reach out to our office! Our office number is (717) 919-7602 or you can easily fill out the Contact Us Form.
Want to know more about tax deductions for small businesses? Check out our previous blog post HERE!