FINANCIAL MANAGEMENT - TAXES

Know the standard forms.

As you accumulate FICA and payroll-withholding taxes, consider depositing them on a monthly basis into an interest-bearing savings account. When you pay them quarterly, the interest represents additional company income. Keep your money working for you as long as you can.

You may consider treating your employees as subcontractors. However, recognize your responsibilities. If the general contractor does not cover them for Workmen’s Compensation, you must do it. Sign an agreement with each of them, and with any other subcontractor you use to assure them that they’ll have all the insurance coverage the law requires. Report their earnings on Tax Form 1099. Be sure to follow the requirements for subcontractors so that they remain subcontractors when the Tax Man comes looking.

The following list includes some of the forms you should be familiar with:

IRS Forms: W-2, W-4, 941, UTC-6
Tax Payments and Due Dates, Penalty Charges
Federal Unemployment, FICA, and Withholding
State Unemployment, FICA, Withholding, Sales Taxes
Vehicle Tags

Mike Holt’s Comment: This newsletter was extracted from my Business Management and Management Skills’ Workbook. Watch for our next newsletter, and as always, we encourage your comments and feedback. Send us your real-life experiences. Please respond to Barbara@mikeholt.com.

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