Many changes can happen during the first six months of the year. The birth of a child or a promotion will affect your income, debt, and other financial obligations. Small business owners may have to broaden the scope of accounting services they receive. In any of these situations, having a mid-year tax withholding checkup can help ensure you’re up to date. Here’s a helpful guide on who can benefit from this important service.

Candidates for Mid-Year Tax Withholding Checkups

Employees With Two Jobs

If you have more than one job, take the time to ensure your tax withholding amount aligns with your net pay. Determine if the deductions are still adequate or if adjustments need to be made. Independent contractors are responsible for paying estimated taxes each quarter. They should submit at least one payment to the IRS by around June. 

New Parents and Spouses

If you’ve recently had a baby, it’s important to change the exemptions on your tax withholding. Check with your human resources department to make the necessary updates. The same is true if you’ve gotten married or divorced. The amount of taxes withheld should reflect these life changes. 

Small Business Owners

The middle of the year is the ideal time for business owners to assess financial goals for the rest of the year. If you’ve hired additional employees, make sure they’ve completed W-4s and you’ve withheld the appropriate amount of taxes. Also determine whether you need to amp up accounting services to keep up with your company’s growth.

People With Complex Tax Returns

Owners of real estate property, business owners, and even recent lottery winners will likely have more complicated tax returns. If your income and financials have changed significantly since the first of the year, take the time to review your tax withholding details by the middle of the year. You may need to enlist an accounting service specialist for tax help.

Linda M. Shiraiwa, CPA, PS Inc. offers personalized assistance to individuals and small business owners who need tax help. This includes tax return preparation, accounting services, and bookkeeping. Based in Gig Harbor, WA, Linda never uses a cookie-cutter approach with her clients. You can expect to receive solutions tailored to your unique financial situation. Schedule an appointment by calling (253) 858-6030 or visiting her website.