Understanding your requirements for tax filing and payments as a business is crucial in order to follow state and federal law for running your business. If you fail to make a payment or file for the correct taxes, it could result in hefty fines which can be damaging to you as an owner, especially if you run a small business.
GE Payroll Services can help you to stay on track by providing services that ensure you are filing all the correct taxes for your business and giving you an easy-to-understand layout of what your taxes are, how often they need to be paid and what day you need to pay for on. Once you have all that in order, it can be even easier to file and pay for your taxes as Virginia offers to do all of it online. This gives you the ability to have access to and pay your taxes anytime, anywhere.
What Taxes You Can Expect to Pay as a Business Owner
The taxes you pay as a business can be slightly more complicated than those as an individual. Depending on what type of business you may have, there are a lot of different kinds of taxes to keep track of, all with different requirements and rules.
Some of the taxes you can expect to pay as a business owner are:
Sales Tax: You must register to collect sales tax in Virginia if you sell, lease, distribute or rent to customers in Virginia. This applies only if you have sufficient activity or “sales tax nexus”. If you have an office or business in Virginia, goods in a warehouse, advertisements in print, outdoor or otherwise, then you do have sales tax nexus. You can file to collect sales tax online as well and the due date will be based on your tax liability, which could be monthly or quarterly.
Withholding Tax: This tax is what you withhold from your employees’ wages for state income tax. You can register for withholding tax online as well and expect this to be taken out semi-weekly, monthly or quarterly depending on how much your withholding liability is.
Income Tax: The income tax rate in Virginia, which is different from the personal income tax, is 6% of your taxable corporate income. This will typically be based off your payroll, property factors and of course, sales. As you may have guessed you can also file your forms through electronic filing with eForms. The payment for this depends on if you are a calendar-year filer, fiscal-year filer or a nonprofit.
Licensing Tax: When you register for the license for your business you may need to pay a tax for this that will need to be paid each year as a form of renewal.
The Virginia Tax site also has an information page to use as a guide for what forms you will need and how to file electronically.
How Our Payroll Services Can Help You with Your Taxes
At GE Payroll Services, we understand that not everyone is a tax professional and may need help with staying on top of them. Our software can help you with tax preparation to keep track of your taxes online and have easy access to reference what taxes you need to be paying, how often, and what day of the month they will need to be paid.
Our software will also keep track of all your tax identification numbers (TIN) attached to each one for easy referencing. If you ever run into any trouble with how to understand our tax page, there is an information button in the top right corner that you can use as a cheat sheet to easily understand what it all means.
Especially if you are a small business, you already have a lot of things to take care of. This can help you keep better track things like your state tax, employment taxes, social security and Medicare taxes, as well as help you stay compliant.