Business owners have a lot of responsibilities to handle, with one of the most important being their company’s taxes. Failing to stay on top of this task could lead to tax compliance issues, which can cause an array of legal problems. It can be challenging to manage all the different complications that might come up, which is why entrepreneurs in New Haven, CT, turn to the business law attorneys at Zangari Cohn Cuthbertson Duhl & Grello P.C. for legal advice. Below, these professionals discuss what companies must do to avoid being non-compliant.

Reported Earnings

All businesses are required to pay taxes on their reported earnings. When preparing a tax return, factor in gross income from sales, as well as all miscellaneous income generated from any other source. Once the total gross income is calculated, take deductions for expenses related to business operations. To stay compliant with tax laws, make sure you’ve properly reported all income and only deducted expenses that are related to your specific trade.

Employment Taxes

If a business has employees, it must take into account a range of employment tax issues. For example, employers have to ensure they withhold the right amount of federal, Social Security, and Medicare taxes from each employee’s paycheck. They are also responsible for paying FICA taxes on their employees’ behalf. Additionally, business owners need to make sure they pay into unemployment and workers’ compensation properly. Neglecting to follow the appropriate procedures as outlined by the state’s business laws can result in auditing and considerable financial problems.

New or Ending Businesses 

Entrepreneurs must also consider tax compliance whenever starting or closing a company. When setting up a business, the chosen structure will influence tax requirements, and an employer identification number will need to be obtained. When closing a business, a final tax return and final employment taxes have to be filed. Everything must be carefully reported to the IRS to prevent future penalties.

If you have any questions regarding your company’s compliance, the business law professionals at Zangari Cohn Cuthbertson Duhl & Grello P.C. are happy to assist. Since 1946, they have helped clients resolve compliance concerns and fight back against IRS audits. Give them a call today at (203) 789-0001 to schedule a consultation, and visit their website for more information on their legal services.