Tag: outsourced accounting dallas

Advice from a Professional Controller: Small Business Taxes

Posted on by Bryan Polozola

As your small business begins to take shape and employees are hired, you immediately need to start considering employment taxes. Many business owners are incredible entrepreneurs, experts at growing and maintaining a thriving business, but many feel ill-equipped to handle small business taxes on their own.

 

NexGen Finance Solutions can help wade through the waters of small business taxes and employment taxes. Here are a few of the basics that should be withdrawn each month:

 

  • Federal Income Tax: Use the IRS withholding charts to determine what the appropriate amount of withholdings is each month. This figure is based on each employee’s annual income and is pulled from the employee’s paycheck each pay period.
  • Federal Unemployment Tax: This tax is taken into account by the employer at the rate of 6% of the first $7,000 of each employee’s wages. This may also be due at the state level, depending on what state your business resides in.
  • Social Security and Medicare Taxes: Social Security taxes and Medicare taxes are a burden shared evenly between the employer and the employee. Roughly half of the taxes come from the employee; half from the employer. More information can be found here for exact amounts due per employee for your small business taxes.
  • State Income Tax: These taxes are withdrawn in the same fashion as the Federal income taxes, depending on whether or not your state requires these to be withheld. State income tax is to be reported in the state of employment, not the state of residence.
  • Worker’s Compensation: While not a tax per se, workers compensation is also paid based on payroll. Guidelines for worker’s compensation vary from state to state, but the premise is the same across the board. As a business owner, you must either purchase a private insurance policy, enroll in a state-sponsored plan, or show that your business is stable and has the ability to be self-insured.

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If you are confused about employee tax withholdings for your small business, give Bryan Polozola at NexGen Finance Solutions a call today at 214-629-0100 or email us at bryan@nexgenfinance.com. As a professional controller, I can guide you through the process and provide the Dallas outsourced accounting functions your small business needs.

Are you ready to meet YOUR new finance team?

Converting Personal Expenses to Business Expenses

Posted on by Bryan Polozola

As a Dallas small business owner, you are constantly shelling out money, and the lines between personal expenses and business expenses are often blurred. Finding personal expenses that convert to business expenses is the key to maximizing tax savings and tax write-offs.

tax solutions Dallas

What does it mean to convert personal expenses to business expenses?

The IRS allows small business owners to file deductions for any personal expenses that are incurred in the interest of generating income (Internal Revenue Code Section 62). These items can vary from business owner to business owner, but keeping close tabs on your expenses and how you are spending money will help you determine what those costs are for you.

 

Think “Above the Line”

Every tax return is determined based on a simple number: your Adjusted Gross Income. Your goal is to assess what personal expenses you have incurred on behalf of your business that can be applied to the Adjusted Gross Income, expenses above and beyond the Adjusted Gross Income line. Every dollar that can be linked to your business is more money back in your pocket.

 

What costs are covered?

There is no hard and fast rule for what is covered across the board for each small business owner. Examples of covered expenses could include home office expenses, technology costs, client entertainment, travel expenses, etc. Work closely with your Dallas accounting team to determine what is eligible for deduction.

 

Make Changes Now; Reap Tax Benefits

It is not too late to adjust the way you spend for 2016 in order to reap greater tax benefits next year. Consider each purchase and whether or not it can apply to your business as well. Keep close records of each and every purchase, take notes on travel and client entertainment, and record any information that could be useful for an expense you plan to file as a business deduction. These records will prove invaluable should an audit ever take place.

 

Need help maximizing tax savings for your small business? Outsource your accounting needs to NexGen Finance Solutions in Dallas, Texas. Bryan Polozola and his team are experts in finance and accounting, ensuring you will receive the care your company demands. Call us today at 214-629-0100 or email bryan@nexgenfinance.com.