Monthly Archives: January 2019

5 Time Saving Tips For Small Business Owners During Tax Season

No one enjoys tax season and when you run a business, this season can quickly become a hectic blur of days. The key to handling your company’s taxes is to streamline processes and come up with faster methods for getting work done. From filing 1099s to finalizing every detail with the IRS, you need to work efficiently to ensure every deadline is met and no numbers were missed.

For many small business owners, the burden of tax season falls squarely on their shoulders. If that’s the case for you, check out these five time saving tips for your business during the upcoming tax season.

#1: Delegate Work When You Can

As a business owner, your life is busy and you probably have far too much on your plate to get done every day. Rather than stressing yourself out further during tax season, attempting to juggle your normal work alongside tax duties, work on delegating more. This is a great time of year to focus on finding your key team players and providing them with some of your burden.

The more you can delegate smaller tasks that don’t really require you, the more time you will have to dedicate to your taxes. While it can be hard to let go of things, it is wiser to hand off a few projects than to attempt to do it all. When you overwork yourself, it is easy to make more mistakes and to miss important tax deadlines. Turn your focus to where it needs to be and pass off some of your daily tasks.

#2: Push Back Projects That Aren’t Time Sensitive

Do you have some projects on your plate that aren’t time sensitive? Push back any tasks like these that you can until after you are finished with filing taxes. Tax forms come with deadlines, which means they need to take top priority over other projects.

Pushing back a few projects can free up your current schedule. This will allow you to dedicate the time you need to submitting tax forms on time. This will save you money in the long run as you will avoid costly tax fees and penalties.

#3: Schedule A Little Time Each Day

Tackling all your taxes in one day can be a bit overwhelming. Instead of staying at work for 15 hours straight attempting to get all your paperwork done at once, dedicate a chunk of time each day to the project. If you are at your best in the mornings, schedule yourself as busy for the first four hours of the day until you finish your taxes.

By approaching your taxes in chunks, you can save yourself from becoming completely exhausted by the process.

#4: Reach Out For Help

If you run into questions while you are filing your taxes and you are completely puzzled by a specific form, don’t hesitate to reach out for help. Talk to your accountant and be certain that you clearly understand applicable federal and local tax laws. This will save you from making costly mistakes and can ensure that you don’t lose sleep worrying about a form you didn’t understand.

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#5: Utilize E-Filing For 1099s

One of the most time-consuming projects in regards to taxes is filing 1099s. In the past, you had to purchase an array of lenghty forms, fill them out by hand, mail the appropriate document to recipients, and file with the IRS via snail mail. However, this process can be simplified by utilizing online e-filing for 1099s. This allows you to fill out the forms quickly and cuts out the long process of mailing forms by hand.

If you are interested in making the process of filing 1099s faster and easier, we invite you to sign up today for OnlineFileTaxes.com. You can quickly fill out any number of 1099s through our easy-to-use platform. The 1099s will be mailed out to the necessary recipients and you can also e-file with the IRS. Make this tax season a little easier on you and your staff by utilizing our simple process for 1099 filing. We look forward to helping you get your taxes done on time and with as little stress as possible.

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1099 Frequently Asked Questions and Answers to Know When You File

1099 Frequently Asked Questions and Answers to Know When You File

Ready or not, here comes another tax season. That usually spells countless hours of 1099 preparation for business owners, CPAs, accounting professionals, and independent contractors. Whether you’re a veteran or rookie when it comes to filling out this documentation, it’s imperative to know the basics.

Here are some 1099 frequently asked questions and answers you should understand prior to filing, as referenced from Entrepreneur:

  1. Who should receive a Form 1099 in the first place? – As a business owner, you must send 1099s to individuals (vendors or subcontractors) you paid more than $600. This includes any partnership, limited liability company, limited partnership, or estate. If your organization paid more than $10 in royalties, made direct sales of at least $5,000 of consumer products, or withheld any federal income tax under the backup withholding rates, the IRS also expects you to file Form 1099.

  2. Are there any exceptions? – Not everyone needs a 1099. For example, you don’t have to worry about sending this form to vendors operating as S or C-Corporations, partnerships, merchandise sellers, and rent payments to or through real estate agents. It doesn’t hurt to check with your accountant beforehand.

  3. Do I really need to send my lawyer a Form 1099? – Sure, your lawyer might be “incorporated” and what appears to be a standup individual. That said, Uncle Sam still wants to double-check their income. Remember to send them a Form 1099 if you paid them more than $600.

  4. Can’t I just download a bunch of 1099 forms and send them out to my vendors? – Unfortunately not. Because the form is pre-printed in triplicate, you must order the forms directly from the IRS and then pick them up from an approved service center (post office, for example). Continue reading for an easier way to go about completing your 1099 forms.

  5. Am I required to file electronically? – Here’s the deal: If you have more than 250 forms to file, Uncle Sam requires that you file electronically. Failing to do so could be cause for a penalty of up $100 per return. So make it easy on everyone, including yourself, and file electronically.

  6. Can foreign workers file their own 1099? – It’s up to you to file 1099s on behalf of any non-U.S. citizens. Not only are you tasked with verifying foreign workers, but you must confirm where work was performed. To make things easier on yourself in the future, consider having foreign workers fill out, sign, and return to you Form W-8BEN.

  7. Is it really a big deal if I ignore the 1099 process altogether? – Nobody wants to be on the bad side of the IRS, but especially business owners and independent contractors. If you’re a business owner, you can expect heavy penalties for failing to file, submitting incorrect information, and failing to provide recipient copies. It’s also worth mentioning that penalties usually increase with time. So file as soon as possible and get back to running your business.

File 1099 Forms Online

Maybe this is the year you finally invest in a reliable 1099 preparation system. Here at OnlineFileTaxes.com, we make the process simple and stress-free from start to finish. When you e-file 1099 forms with OnlineFileTaxes, you eliminate the need to buy and fill out lengthy forms.

That’s not the only benefit, though. Our innovative system allows you to process any number of forms, from one to hundreds in a seamless and economical manner. Never again will you have to throw away money on expensive software or get hit with outrageous administrative and IT costs associated with year-end 1099 processing.

If you don’t take our word for it, see what our happy customers have to say.

“I highly recommend OnlineFileTaxes for your 1099 e-filing needs,” says Jennifer Schubert-Akin, owner and founder of Marathon Accounting Services LLC in Steamboat Springs, Colorado. “There’s no need to buy expensive forms and stuff envelopes. It’s secure, accurate, fast, and affordable. And it’s better than Intuit’s e-file service.”

With OnlineFileTaxes, you get printing, mailing, and e-filing services for as low as $1.25 per form! You won’t get that kind of low price anywhere else. So when you’re ready to get serious about your 1099 preparation, turn to OnlineFileTaxes.com.

Contact us today with any questions.

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