Important Payroll Tips That Can Save You A Bundle Of Money In The Long Run

Hello everyone Karla Dennis here with Cohesive Tax Services talking with small business owners today about valuable tips on payroll taxes. I use this blog to keep small business owners and individuals thinking about how they can positively change their tax outcome every single year. If you are facing a tax resolution situation or simply need some guidance in your small business planning please give me a call or visit my website to learn more.

Today I wanted to talk about the importance of accurate payroll records. It is very important that you file your payroll taxes on time and that every employee is accounted for. In this current economic cycle I know many small business owners are toying with the idea of making many of their employees independent contractors. This is something I think should be avoided due to the potential for an IRS audit. If an IRS audit occurs it is very possible that all of these independent contractors that were actually employees will require additional taxes to be paid. This can also affect your ability to utilize worker compensation. If you have an employee listed as an independent contractor that gets hurt or injured on the job they likely will not be covered by workers compensation. If you are attempting to do payroll yourself and money is tight that month it can cause some problems. I have seen some businesses in the past use their payroll taxes withholdings to pay past due bills instead of paying employee payroll taxes. It is important to have a separate bank account for payroll as well as payroll taxes. It is also very important to pay your payroll taxes on time.

These three easy steps are just a few ways to keep your payroll in line every month without leaving yourself in an awkward situation. For all of your tax and payroll needs contact Cohesive Tax to get questions answered and the best service around. Thank you for your time and I look forward to hearing from you soon.

Karla Dennis

As seen in Forbes Magazine, Karla Dennis is an expert tax and business strategist. As an enrolled agent, Karla is licensed to represent taxpayers in all 50 states. She holds a Masters in Taxation and Business Development and is the author of two books, Tax Storm and Against the Odds.

Karla, CEO of consultancy firm Karla Dennis And Associates, Inc.™, has saved her clients thousands of dollars and has been featured in various media outlets such as Forbes, MSNBC, KTLA, Yahoo! Finance, and SmartMoney, marking her as the ultimate tax expert.

As of 2014, Karla became the new host on the “Mind Your Business” radio show, KTLK AM 1150, sharing her financial and business knowledge with the greater Orange County and Los Angeles areas. As a supporter of women’s rights and issues, Karla is part of the Women Network, an organization built to educate and mentor women. In addition, Karla is the radio host for Women Network Radio, a show that aims to uplift and empower women of all walks of life.